StarHub (SGX:CC3)’s 9M25 results were ahead of our estimates, but below consensus forecasts. We see the sustained mobile competition as key earnings headwinds, with broadband competition ticking up.
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A washout year.
StarHub's 9M25 core earnings of S$82m (ex-one-off payment for partial return of the 700MHz spectrum in 2Q25) fell 28% y-o-y on an 9% y-o-y EBITDA drop, reflecting the high operating leverage of the mobile business (-7% year-to-date), which continues to grapple with stiff competition. 3Q25 core earnings fell 29.5% y-o-y on a 5% decline in service revenue.
While results lagged, at 70% of consensus forecasts, our below-Street estimates suggest a slight outperformance into a seasonal December quarter, supported by a S$6.6m government grant for the quarter (booked as other income). FY25 looks to be a washout year, with double-digit EBITDA and lower core earnings.
Results review.
- Read this at SGinvestors.io -
As with cyber-security services, the regional enterprise business was the key bright spot – up 1.5% year-to-date, with lumpy managed services revenue (3Q25: -12% y-o-y) from a higher value of recognition of projects in 3Q24.
Outlook.
Read more at SGinvestors.io.
Above is an excerpt from a report by RHB Securities Research. Clients of RHB may be the first to access the full PDF report @ https://www.rhbtradesmart.com/.
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