StarHub (CC3) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 ranged from SGD 744 million to SGD 969.7 million, reflecting declines due to intense competition, ARPU rebasing, and Ensign deconsolidation.

• EBITDA for H1 2026 was between SGD 154.9 million and SGD 159 million, impacted by lower gross profit and a largely fixed cost base.

• Net profit after tax attributable to shareholders was SGD 258.1 million, significantly boosted by a one-off gain from the Ensign transaction; underlying NPAT was SGD 12.4 million.

• Strong cash position with SGD 515.7 million and positive free cash flow of SGD 40.6 million.

• Strategic focus on cost optimisation, monetising higher-value 5G+ plans, enterprise scaling, and disciplined capital allocation.

Financial highlights

• Service revenue (excluding Ensign) declined 6.7% year-on-year to SGD 744.4 million; total revenue including Ensign deconsolidation was SGD 969.7 million, down 14.1%.

• EBITDA was SGD 158.6 million, down 23.8% year-on-year; service EBITDA margin dropped to 17.3%-20.0%.

• Net profit attributable to shareholders was SGD 258.1 million, including a one-off gain from Ensign; underlying NPAT was SGD 12.4 million.

• Free cash flow turned positive at SGD 40.6 million, with net cash from operating activities at SGD 124.2 million.

• Interim dividend of 3.0 cents per share declared for H1 2026.

Outlook and guidance

• Full-year 2026 EBITDA expected at 75%-80% of 2025 EBITDA, with capex commitment at 13%-15% of revenue.

• Free cash flow expected to remain positive despite increased investment in IT, cybersecurity, and network optimisation.

• Interim dividend of 3.0 cents per share declared; full-year dividend outlook reaffirmed at minimum 6.0 cents per share.

• Continued focus on cost savings, targeting SGD 70 million per annum by 2028, with 10% achieved by June 2026.