StarHub Ltd

StarHub reported first-half 2026 revenue of $744 million, down about 7% year over year, and EBITDA of $159 million / $158.6 million. Reported net profit after tax attributable to shareholders was $256 million / $258.1 million, driven by a one-off Ensign-related gain of $245.7 million and the partial divestiture; excluding that gain, underlying NPAT was $12.4 million. Opex was kept broadly flat at $852.3 million, while cash and bank balances ended the half at $515.7 million and operating cash flow was $124.2 million. Net debt-to-EBITDA was about 2.4x, and capex payments were $83.6 million, or 8.6% of revenue. Looking ahead, management said full-year 2026 guidance remains intact, including EBITDA at 75% to 80% of 2025 EBITDA, positive full-year free cash flow, and a dividend outlook of the higher of $0.06 per share for the year or in line with policy.

Nikhil Eapen framed the quarter around four strategic pillars: consumer monetization, enterprise scaling, cyber investment, and cost optimization. He stressed that StarHub is moving customers onto higher-value 5G+ plans, building a more durable base with lower churn and higher ARPU, while also using multi-brand segmentation and consolidation to defend revenue share. His tone was defensive on current market conditions but constructive on StarHub’s positioning, emphasizing balance sheet strength, Ensign monetization, and a path to better total shareholder returns in 2027 and beyond.

Jacky Lo said the half reflected a tough operating environment, especially in consumer, but highlighted disciplined cost control: operating expenses were broadly flat at $852.3 million and the company has achieved around 10% of its $70 million annualized savings ambition. He noted EBITDA of $158.6 million, reported NPAT of $258.1 million, and underlying NPAT of $12.4 million, with the main uplift coming from a $245.7 million one-off gain tied to Ensign. He also pointed to a strong liquidity position with $515.7 million of cash and bank balances, $124.2 million of operating cash flow, $40.6 million of positive free cash flow, and leverage of about 2.4x, while reaffirming positive full-year free cash flow and a dividend of at least $0.06 per share.

Analysts focused on whether StarHub can still meet full-year EBITDA guidance after a 24% first-half decline, and management said confidence comes from 5G+ monetization, enterprise order book conversion, and back-ended cost savings. On consumer, management said customers are moving to 5G+ plans because of better network quality on the stand-alone 700MHz rollout and the 5G SA transition, which should support ARPU and lower churn. On competition, management said price pressure remains intense across incumbents, the fourth operator, and value players, but expects future regulatory and network changes to narrow the fourth operator’s cost advantage. On leverage and M&A, management said 2.4x net debt-to-EBITDA leaves sufficient headroom, and that planned enterprise acquisitions are small while larger consolidation can still be structured within the company’s capital envelope.