StarHub announced on Aug 12 that it would buy the rest of MyRepublic broadband business, along with related operational assets, for $105.2 million. The transaction will be funded with cash, after setting off $74.2 million in debt owed by MyRepublic Holdings, resulting in a net cash outlay of $31 million.
RHB sees the move as a “tactical response to the recently announced Simba-M1 deal.”
According to StarHub, the acquisition will reinforce its leadership in the FBB space and gain full access to MyRepublic’s brand equity, which should in turn drive greater value creation for customers. StarHub is already No. 1 in broadband revenue share and ranks second in subscribers behind Singtel.
RHB notes that FBB remains integral to StarHub’s Infinity Play strategy, which bundles broadband with mobile, pay TV, and enterprise services. Bundling drives customer stickiness and offers room for household ARPU growth, especially as more users upgrade to ultra-high-speed plans above 5Gbps. Broadband revenue grew 4.9% year-on-year in the 1QFY2025 despite a slight dip in FBB subscribers.
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RHB is keeping its forecasts unchanged until StarHub reports its 1HFY2025 results on Aug 14. “We expect StarHub to book the last of the DARE+ investments in 2Q25, as per management’s guidance with positive benefits to accrue from 2HFY2025. Based on our estimates, incremental earnings from the consolidation of MyRepublic [will be] marginal,” wrote the analysts in an Aug 13 note.
As at 12.38 pm, shares in StarHub are trading at $1.18 flat.
