StarHub’s quarterly Ebitda drops 26.3% despite revenue growth
Enterprise revenue rose 18.4 per cent, but mobile, broadband and entertainment revenue declined as the telco faced higher operating costs.
StarHub reported third-quarter Ebitda of S$72.1 million on Nov 12, a decline of 26.3 per cent from S$97.8 million a year earlier. Revenue for the quarter ending Sep 30 increased 4.5 per cent to S$486.8 million, while net profit was S$3.9 million.
The Singapore telco attributed the Ebitda decline to weaker gross profit, increased operating expenditure and reduced income from other sources. It said investments in capabilities and business growth had raised staff costs. High operating leverage and increased depreciation and amortisation also affected net profit.
Service revenue reached S$396.1 million, rising 2.9 per cent from S$384.9 million. StarHub linked that growth to enterprise revenue, which increased 18.4 per cent year on year. Consumer revenue weakened across all three businesses: mobile fell 6 per cent, broadband declined 4.1 per cent and entertainment dropped 10.6 per cent.
StarHub said price competition reduced subscription revenue in mobile and broadband. Average revenue per user for mobile decreased to S$19.20 from S$21.70, while the broadband figure slipped to S$31.90 from S$34.10 despite growth in customer subscriptions.
The company maintained its outlook, expecting Ebitda equivalent to 75 to 80 per cent of its FY2025 level and capital expenditure of 13 to 15 per cent of total revenue. It also retained its dividend policy: the higher of S$0.06 per share or at least 80 per cent of attributable net profit, adjusted for one-off items.
StarHub said discussions with Keppel over a possible M1-related transaction remained ongoing. A separate stock exchange filing confirmed that Matt Williams, its CEO-designate, would become CEO and executive director on Jan 1, 2027.
