Skewed by one-off items, StarHub has reported earnings of $47.9 million for 1HFY2025 ended June 30, down 41.7% y-o-y.
The company explains that the lower bottom line is distorted by a combination of lower ebitda and also a one-off forfeiture payment of $14.1 million for the return of one 700 MHz spectrum lot in 1H2025.
If the exceptional items were excluded, earnings was down 23% to $62 million for the same half year ended June.
Total revenue in 1HFY2025 was $1.1 billion, up 2.2%. Cybersecurity services revenue grew at the fastest pace with a gain of 20.1%, followed by regional enterprise that was up 6.8% and broadband, up 4.%. Mobile, on the other hand, was down 5.4% and entertainment dropped by a bigger magnitude of 9.1%.
Despite the lower earnings, StarHub plans to keep its interim dividend at 3 cents.
For the current 2HFY2025, the company is adopting a "more aggressive commercial stance". As such, it is lowering its FY2025 ebitda outlook from the earlier “stable” y-o-y to between 88% to 92% of the FY2024 ebitda.
See also: SingPost reports 60% lower operating profit in 1QFY2026 business update
"This revision reflects a deliberate strategic decision to preserve competitiveness and defend market share while continuing to invest in long-term growth levers," the company says.
StarHub CEO Nikhil Eapen describes a market where "eroding prices challenges industry sustainability".
"We intend to remain aggressive across brands and segments in the domestic consumer market to position for eventual market recovery," he adds.
StarHub shares closed at $1.19 on Aug 13, up 0.85% for the day and down 2.46% year to date.
