StarHub (CC3) Q2 2026 Earnings Report

Balanced/Neutral. The call highlighted strong strategic positives — a fortified balance sheet (cash $515.7m), a large Ensign-related one‑off gain, robust enterprise order book growth (~49–50% YoY) and progress on 5G+ monetization and consumer brand positioning (StarHub, eight, MyRepublic). However, those positives are offset by significant near‑term operating pressures: group revenue down ~7% YoY, reported H1 EBITDA around $158.6m with participant‑referenced H1 EBITDA decline of ~24%, and weak underlying NPAT of $12.4m excluding the Ensign gain. Cost savings are in early stages and cybersecurity/IT investment is front‑loaded for 2026, so material margin recovery is expected later. On balance, highlights and lowlights are reasonably matched, supporting a neutral outlook for the call.

StarHub reiterated full‑year guidance with an EBITDA target of 75%–80% of 2025 EBITDA and expects positive free cash flow for FY2026, while H2 CapEx and IT/cybersecurity/network investment will ramp. Key H1 metrics: revenue $744m (‑7% YoY), EBITDA $158.6m, reported NPAT $258.1m (including a $245.7m one‑off Ensign gain; underlying NPAT $12.4m), operating cash flow $124.2m and free cash flow $40.6m, cash/bank balances $515.7m, net debt/EBITDA ~2.4x and only ~S$70m debt maturing H1 2027. Other targets/notes: H1 CapEx paid $83.6m (8.6% of revenue), interim dividend $0.03/share (reaffirming full‑year at the higher of $0.06/share or policy), cost‑savings goal $70m p.a. by 2028 (≈10% achieved to date), order‑book growth ~49–50% YoY with regional enterprise revenue +5% and managed services +24%, and potential further monetisation of the remaining ~38–39% Ensign stake (valued at ~$322m) during 2026.