StarHub signals intention to go aggressive on acquisitions even as H1 profit falls 41.7%
'We have a big war chest,' said Eapen at a briefing accompanying StarHub's financial results for the first half-year ended June.
'We are also open to further small-scale consolidations in the domestic consumer space,' he added, noting that StarHub has strong cash flow and low leverage levels.
StarHub's net profit slid 41.7 per cent to S$47.9 million for H1, from S$82.1 million in the corresponding year-ago period.
The drop included a one-off forfeiture payment of S$14.1 million for the return of certain spectrum rights.
Earnings per share declined 43.8 per cent to S$0.026, from S$0.046 in the same period the year before.
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Eapen's comments come after StarHub on Tuesday announced the purchase of the rest of MyRepublic's broadband business that it did not already own.
Just the day before, Keppel had proposed the sale of its M1 telco business to Simba Telecom – putting an end to long-time speculation about StarHub acquiring its competitor.
Shares of StarHub fell as much as 6.6 per cent on Monday in response to the news.
Responding to media queries about Simba's acquisition of M1, Eapen noted that the consolidation is a good thing for the market and sector.
While he was unable to comment on StarHub's bid, he added that StarHub's aggressive stance on the consumer business will be the 'best way to bring about market stabilisation and recovery'.
Eye on low-cost market
Meanwhile, StarHub will also be looking to continue pursuing its strategy to attract the low-cost market.
Responding to queries at the briefing, StarHub's chief of consumer business group Matt Williams said: 'We continue to execute our multi-brand, multi-segment strategy, which means that we are aggressive with Eight.' Eight is a mobile virtual network operator that runs on StarHub's network.
He added that Eight is a leader for people seeking lower prices, and StarHub will be looking to incorporate additional benefits such as increased roaming allowance.
Williams said that MyRepublic's broadband will remain independent following the acquisition by StarHub, with Eapen adding that the broadband segment is an 'attractive segment'.
Williams noted that StarHub has plans to give access to MyRepublic customers to watch English Premier League football.
This more aggressive stance means that StarHub's earnings before interest, depreciation, taxes and amortisation outlook for the 2025 financial year have been revised down to between 88 and 92 per cent of the 2024 figures.
'This revision reflects a deliberate strategic decision to preserve competitiveness and defend market share, while continuing to invest in long-term growth levers,' said StarHub.
Higher revenue
The drop in earnings comes despite revenue rising 2.2 per cent to S$1.13 billion in H1 from S$1.1 billion, thanks to higher contributions from its broadband, regional enterprise and cybersecurity services. Revenue from these segments rose 4.4 per cent, 6.8 per cent and 20.1 per cent, respectively.
The group's regional enterprise business recorded S$296.1 million in revenue in H1 FY2025, from S$277.3 million in the same period in the prior year. This was due to a 12.8 per cent growth in managed services, reflecting higher project completions from StarHub's modern digital infrastructure solutions.
This was offset by a drop in entertainment service revenue of 9.1 per cent, mainly due to a reduction in subscribers, and a 2.9 per cent fall in revenue from sales of equipment, mainly due to longer device-replacement cycles that resulted in lower volume of handsets sold.
Mobile subscribers rose 8.2 per cent, excluding the impact of a one-time consolidation of inactive prepaid subscribers.
The company has declared an interim dividend of S$0.03 per ordinary share for H1, same as the amount in the corresponding year-ago period. It will be paid on Sep 5.
The company previously guided for a full-year dividend per ordinary share of at least S$0.06 in 2025.
It noted that free cash flow might be temporarily affected by the one-off spectrum payment, but expects positive free cash flow trends from FY2026.
Shares of StarHub closed 1.7 per cent, or S$0.02 lower, at S$1.17 on Thursday.
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a day ago
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Owners call for stronger management rules in ageing condos, but seek to avoid being overburdened
Sign up now: Get ST's newsletters delivered to your inbox In recent months, the BCA has conducted focus group discussions with MCSTs, managing agents and industry associations to better understand various perspectives. SINGAPORE – At one 48-year-old private housing estate in Upper Thomson Road, the signs of deterioration are clear. Lifts are due for replacement, there is spalling concrete and water seepage in the carpark, and the sinking fund cannot cover repair costs. But some residents say these issues might have been mitigated with early guidance on technical matters from qualified persons, as well as financial planning support. The news that the Government is reviewing the Building Maintenance and Strata Management Act, to better enable management corporation strata titles (MCSTs) to upgrade their developments, is therefore welcome. In recent months, the Building and Construction Authority (BCA) has conducted focus group discussions with MCSTs, managing agents and industry associations to better understand various perspectives. These talks also aim to allow participants to share best practices and explore options to allow better support in strengthening self-governance and sustaining the maintenance of their developments, a BCA spokeswoman told The Straits Times. She added that feedback received will be carefully considered as part of BCA's ongoing review of the Act . The Act was last amended in 2017. The changes, which took effect in 2019, aimed to strengthen governance, safeguard home owners' interests, and clarify stakeholders' roles and responsibilities. The review comes as more condominiums struggle with deteriorating infrastructure and insufficient sinking funds for major repairs. Real estate agency ERA Singapore estimated that there are 2,703 condo developments in Singapore today, of which 836 or 31 per cent are at least 30 years old. This number is expected to climb to 1,160 by 2035, assuming none is sold en bloc. Mr B.M.R Williams, who is MCST council chairman of the 48-year-old Lakeview Estate in Upper Thomson, said: 'We need an audit system in place where qualified people certify the safety and essential services once an estate reaches a certain age. A sub-committee of residents with relevant expertise could also help the council manage the estate.' But this is difficult to implement when many residents are retirees and a quarter of the 240 units are rented out, said Mr Williams, 83. At the last annual general meeting in April 2025 , only 17 home owners attended and three people were elected to the council. One quit before the first meeting. 'It is difficult to get people to join the council as it's very challenging to manage an ageing estate like ours,' said Mr Nallan Chakrawarti Raghava, 73, treasurer of the council. (From left) Lakeview Estate's MCST council chairman B.M.R Williams, professional engineer and consultant for the MCST Patrick Foong Keng Yuen, MCST council treasurer Nallan Chakravarti Raghava, and the condo's manager Abdul Shazwan. ST PHOTO: NG SOR LUAN There are a total of 12 lifts in three blocks, each of which serves alternate floors. When one fails, residents on those floors have no lift access, which is a major inconvenience for the elderly and wheelchair users. Replacing all the lifts would cost $1.8 million, while fixing spalling concrete in the carpark would cost another $300,000 to $400,000. The sinking fund currently holds less than $1 million, said Mr Williams. Given the shortfall, and with a collective sale attempt under way, the council has sought professional advice to recondition all 12 lifts for about $600,000 instead. At Central Green Condominium, a 30-year-old leasehold development in Tiong Bahru, a resident who wanted to be known only as Ms Tan, 66, called for clearer rules that distinguish between maintenance and improvement works, to help MCSTs prioritise what needs to be done. 'For example, should funds be used to build a new playground over lift upgrading?' said Ms Tan. In a letter to The Straits Times' Forum page on Aug 12, Ms Michelle Koh Cheng Joo called for changes such as mandatory training for MCST council members, mandatory accreditation for managing agents, tenure limits for MCST council members, clearer enforcement and audit timelines, and greater resident engagement. In another letter on Aug 8, Mr Keith Wong proposed targeted financial solutions, including government-backed loans to allow MCSTs to finance major repairs, and means-tested aid to help vulnerable residents pay for special levies. Mr Augustine Cheah, who has experience on several MCST councils, noted that opinions often diverge between investors and owner-occupiers, and between those willing and able to pay more and those who are not. 'Views will differ on how much to spend on beautifying and improving the estate and even what constitutes an acceptable level of quality for replacement. 'If the sinking fund is severely under-collected, say $1 per share value, when $10 is the calculated level needed for future replacement, perhaps the authorities should set a minimum contribution, such as 20 per cent or 30 per cent of the ideal sinking fund collection rate,' Mr Cheah suggested. While managing agents often have the expertise to guide councils, some are overruled. For example, owners may reject proposals for larger sinking funds, viewing them as excessive, said Mr Cheah, who is in his 60s. There are a total of 12 lifts in three blocks at Lakeview Estate, each of which serves alternate floors. When one fails, it becomes a major inconvenience to the elderly and wheelchair users. ST PHOTO: NG SOR LUAN 'Sinking fund balances are often contentious, and a minimum required rate of collection will go a long way towards ensuring there's a sufficient balance,' he added. Ms Winnie Wong, senior managing director of property management at Savills Singapore, noted that many MCSTs' sinking funds are far from sufficient for major works, a problem likely to worsen in the next decade. She supports legislation or policy to ensure reserves are built up, including setting minimum contributions. However, lawyer Daniel Chen of Lee & Lee, who specialises in MCST cases, argued that in the light of the self-governing framework of MCSTs, owners should decide funding levels. He is doubtful about the practicality of having a minimum contribution, given the wide variations in estate size, age, condition and existing reserves. Instead, he suggested that any works deemed critical can be mandated under the law – as is already the case for repainting, which needs to be done every seven years. For safety issues, enforcement is already carried out by the relevant agencies because safety is within the ambit of their regulatory oversight and powers, he added. Rather than mandating extra eligibility requirements for council members, the more effective solution is to require the engagement of relevant qualified persons to manage financial or technical issues, added Mr Chen. In addition to reviewing the Act, the Government will also study how the BCA's Accessibility Fund can better support MCSTs. The fund provides grants for building owners to upgrade existing buildings with essential accessibility features, such as ramps, wheelchair-friendly lifts and accessible carpark spaces. At 48-year-old Lagoon View condominium, resident Timothy Jude Fu-Tien Wimala hopes the Government will fund better access for the elderly to reach the bus stop. 'Older folks, especially those on wheelchairs, are disadvantaged in older estates like ours. The planning regime in those days didn't take such matters into consideration, unlike today,' said Mr Fu Wimala, 44. Spalling concrete and water seepage can be seen in the car park of Lakeview Estate. ST PHOTO: NG SOR LUAN Ms Wong of Savills noted that some MCSTs see collective sales as a last resort if they cannot maintain infrastructure and systems. But fewer than 10 per cent of older condos have successfully gone en bloc in the past decade. MCSTs and home owners need to think and invest for the long term with early planning and collective responsibility to ensure enough sinking funds and reserves for sustainable living environments, said Ms Wong. At Loyang Valley, a condominium in Changi with 56 years remaining on its 99-year lease, some residents are hoping for the collective sale to go through as it is the third time the condominium is being put up for such a sale . Mr Terence Lian, head of investment sales at Huttons Asia and the appointed marketing consultant for the collective sale of Loyang Valley, said: 'While the Building Maintenance and Strata Management Act review may not directly address lease decay or (collective) sales, it's understandable that many home owners in older developments are making that connection.' Said a 78-year-old resident , who wanted to be known as only Mr Jaya: 'I hope the sale goes through this time. If not, I may have to fork out more money to keep the place going.'
