StarHub Ltd

First-half 2026 revenue was $744 million, down about 7% year over year. EBITDA was $159 million, with reported net profit after tax of $256 million; CFO Jacky Lo said reported NPAT attributable to shareholders was $258.1 million, including a one-off gain of $245.7 million from the Ensign assigned-rights termination and remeasurement of the remaining interest. Excluding that gain, underlying NPAT was $12.4 million. Operating expenditures were broadly flat at $852.3 million, cash and bank balances were $515.7 million, operating cash flow was $124.2 million, and free cash flow was $40.6 million. Net debt-to-EBITDA was about 2.4x, capex payments were $83.6 million, and management said first-half performance was broadly in line with full-year 2026 guidance, including EBITDA of 75% to 80% of 2025 EBITDA. The board declared an interim dividend of $0.03 per share and reaffirmed a full-year dividend outlook of the higher of $0.06 per share or the dividend policy.

Nikhil Eapen framed the call around four pillars: consumer monetization, enterprise scaling, cyber investment, and cost optimization. He was upbeat about the strategic shift to higher-value 5G+ plans, consolidation in the market, and the ability to use the balance sheet and Ensign monetization to support long-term shareholder returns. His tone was confident but cautious, repeatedly emphasizing that 2026 is a tough, highly competitive year and that the benefits of the strategy should show through over time.

Wei-Jye Lo said the first half reflected a tough operating environment, especially in consumer, but operating expenses were held broadly flat at $852.3 million through lower cost of sales and discipline. He highlighted EBITDA of $158.6 million, reported NPAT of $258.1 million, and underlying NPAT of $12.4 million after the $245.7 million Ensign-related gain. Liquidity remained strong with $515.7 million of cash and bank balances, $124.2 million of operating cash flow, and $40.6 million of free cash flow, and he said free cash flow should stay positive for the full year despite higher second-half investment in IT, cybersecurity, and network capabilities. He also noted net debt-to-EBITDA of about 2.4x, no significant near-term refinancing needs, and roughly $70 million of maturity in the first half of 2027.

Analysts focused on why StarHub still expects to hit its full-year EBITDA guidance despite a 24% first-half EBITDA decline, and management pointed to better consumer monetization from 5G+ upgrades, a stronger second-half enterprise revenue conversion from the order book, and back-ended cost savings. A second major topic was competition: management said price pressure has resumed across mobile and broadband, led by the incumbent and followed by others, while the fourth operator’s network and regulatory issues could eventually reduce its structural advantage. Analysts also asked about leverage and M&A; management said the 2.4x net debt-to-EBITDA ratio leaves ample headroom, and that planned enterprise acquisitions are small while larger consolidation could still fit within the capital structure envelope.