- StarHub (SGX:CC3)'s FY25 results were within expectations. Revenue and EBITDA were 102% and 97%, respectively, of our forecast. Adjusted PATMI declined 29% y-o-y to S$100.5mil in FY25.
- - Read this at SGinvestors.io -
- Mobile revenue declined 10% y-o-y in 4Q25 to S$129mil. The negative operating leverage will pressure margins in FY26. Despite sluggish revenue, there is a lack of cost control, and CAPEX-to-sales is expected to at least double in FY26.
- DARE+ (or maybe minus) transformation started in 2022 to rein in costs and improve technology. The utopia of $280mil cumulative cost savings was not apparent. Fixed costs are higher since 2022. StarHub is now positioning a new DARE++ with S$70mil identified cost savings and higher CAPEX.
The Positive
Maintained dividend.
- - Read this at SGinvestors.io -
- To maintain dividends, the balance sheet was leveraged up for a 103% payout ratio. Free cash flow excluding S$188mil spectrum (and S$29mil leases) was S$134mil.
The Negative
Mobile revenue contracting.
- Read more at SGinvestors.io.
