- Guidance reflects 8%-12% decline in FY25F EBITDA (previously: stable), as StarHub plans to target higher mobile revenue share in 2H25F.
- We expect StarHub[s service revenue to grow by ~4% y-o-y and service EBITDA to decline by ~11% y-o-y in FY25F, with a service EBITDA margin of 18.7%.
Well positioned to benefit from sector consolidation
- - Read this at SGinvestors.io -
- StarHub has completed its DARE+ transformation expenditure by 1H25 end and is expected to yield benefits from FY26F and beyond.
StarHub now expects FY25F EBITDA to decline by 8%-12% y-o-y vs its previous stable EBITDA guidance.
- - Read this at SGinvestors.io -
- Notwithstanding the above, we project 5% EBITDA growth leading to 10% earnings growth in FY26F, mainly due to cost savings and supported by a gradual recovery in mobile ARPU towards mid-2026. This aligns with a 12-24-month recovery observed in other countries with sector consolidations.
- StarHub declared an interim dividend of 3.0 cents per share and reiterated the unchanged dividend outlook, which is the higher of 6.0 cents per share, or its dividend policy.
StarHub has guided for significant cost savings over the next 24 months
- Read more at SGinvestors.io.
