Latest news with #StarHub
CNA
a day ago
- Business
- CNA
Amid telco shake-up, can Singtel rely on customer loyalty to stay ahead?
Singtel customers told CNA that they are drawn to the bundled deals offered by the operator, and have also noticed efforts to improve its customer service over the years. Retiree Ang Kah Ho, 59, said he has been a Singtel mobile customer for decades. He appreciates the reliable network coverage, good phone upgrade deals and bundled services. 'They never give me any headache,' he said in Mandarin. Mr Ang added that he had briefly tried other telcos, but switched back to Singtel after finding that their customer service was not up to his expectations. Software developer Ke Liyi has been a Singtel user since she got her first phone when she was 14. Now 32, she has stuck with Singtel despite attractive promotions from other telcos. "I briefly considered other telcos whenever my plan was expiring because they had some promotions, especially for new customers,' she said. "It's a matter of reliability versus the amount of data needed. When I need the data outside, will I have the connection?" She acknowledged past frustrations with customer service, but added that improvements – such as better online support – have made a difference. Still, some users have made the switch. Communications executive Victoria Lim, 33, moved from Singtel to StarHub's sub-brand Giga a few years ago. 'Its SIM-only plan was much cheaper than Singtel's plan, and it was offering more perks than Singtel as well,' she told CNA. Since switching, she said she has saved significantly and often has more than enough spare data – to the point where she no longer connects to Wi-Fi at home or in public. BEYOND CONSUMER SERVICES Singtel is also a key player in the enterprise space, for whom reliability is imperative, observers said. 'Not many businesses, particularly MNCs and the public sector, would want to take the risk to jeopardise their business. They thus prefer to stay with a 'trusted' telco,' said Assoc Prof Lau. Ms Tee noted that Singtel's annual report for the 2025 financial year showed that while local mobile revenue was stable, average revenue per user had declined. The company has responded with its Singtel28 growth plan. Launched last year, it includes investments in artificial intelligence, 5G, digital infrastructure and enterprise services. 'Through this strategic diversification, Singtel has made moves to reduce its dependence on revenue from traditional telecommunications,' said Ms Tee. Mr Tan said Singtel is now far more than a telco, with its focus on data centres, enterprise IT and regional investments into other telcos. 'That's one reason their brand is worth so much more than StarHub or M1. It's not just a telco name, it's a regional tech infrastructure brand,' he said.
Straits Times
a day ago
- Business
- Straits Times
Singtel rises 3% on robust earnings; Keppel slides after Simba-M1 deal
Sign up now: Get ST's newsletters delivered to your inbox Singtel ended the week higher after an initial fall following the Aug 11 announcement of Simba's acquisition of M1's telco business. SINGAPORE - Telco consolidation made headlines last week, with StarHub fully acquiring MyRepublic Broadband and Keppel selling M1's telecoms operations. Keppel is divesting its 83.9 per cent stake in M1's telecoms business to Simba Telecom , a unit of Australia-listed company Tuas, in a $1.43 billion deal. Shares of the global asset manager and operator fell after the Aug 11 announcement, with some observers noting that it booked an accounting loss, or loss on paper, for the sale. The stock declined 1.52 per cent from last week's close to $8.45 on Aug 15. The estimated $222 million accounting loss for Keppel stems from goodwill and intangible assets tied to the telco business. Keppel first invested in M1 in 1994 and was later involved in its privatisation in 2019. At a media briefing, Keppel chief executive Loh Chin Hua said that the company has been making an effort to divest non-core assets. 'Our narrative is that we're going to create an asset-light 'New Keppel'. This particular business is no longer core to us. Being able to monetise it is probably the most important point,' he added. The other telco consolidation came on Aug 12, the day after the Keppel announcement. Top stories Swipe. Select. Stay informed. Singapore NDR 2025: New govt-funded traineeship scheme for ITE, poly, university graduates Singapore NDR 2025: CDCs to spearhead new effort to match job seekers to roles nearer to home, says PM Wong Singapore NDR 2025: US baseline tariff of 10% on Singapore offers 'little comfort', says PM Wong Singapore NDR 2025: More avenues for S'poreans to be heard, get involved will be opened up, says PM Wong World European leaders to join Zelensky for Ukraine talks with Trump Sport Third time's the charm as Aaron Liang dethrones Samuel Kang en route to national squash title Asia Mandarin with Taiwanese characteristics: Taipei leverages language as soft power tool Asia 'Rats from the sky': Urban India finds itself divided on pigeons StarHub, which already held a 50.1 per cent stake in MyRepublic Broadband, said it acquired the remaining 49.9 per cent share in a roughly $105 million deal, in a move aimed at strengthening StarHub's strategy in the broadband market. StarHub CEO Nikhil Eapen said: 'We're in a phase of consolidation, and we're not just watching it unfold, we're shaping it.' He added: 'As the market shifts, scale, quality and resilience matter more than ever. Smaller players may find it harder to sustain, especially without robust platforms.' Singapore telcos post mixed results Analysts noted that the industry consolidation could benefit Singapore's two listed telcos – StarHub and Singtel – by helping to ease intense price competition in an overcrowded market. For StarHub, the deal also comes amid weakening performance. Singapore's second-largest telco on Aug 14 posted a 41.7 per cent year-on-year fall in first-half earnings to $47.9 million. The lower profit was partly due to a one-off forfeiture payment of $14.1 million for the return of certain spectrum rights. Excluding this sum, net profit rose to $62 million, though this still works out to a 23 per cent drop year on year. Mr Eapen said the telco intends 'to remain aggressive across brands and segments in the domestic consumer market to position for eventual market recovery'. StarHub shares closed at $1.18 on Aug 15, down 3.28 per cent from last week's close. In contrast, Singtel ended the week higher after an initial fall following Keppel's Aug 11 announcement. Its stock rose 3 per cent from Aug 8 to close at $4.10 on Aug 15. The telco on Aug 13 announced that its underlying first-quarter net profit rose 13.9 per cent year on year to $686 million, driven by higher earnings from its Australian unit Optus and contributions from regional associates, including India's Bharti Airtel. Singtel CEO Yuen Kuan Moon expects the telecom operator's data centre business to be a 'bright spot' in the current financial year as its data centres in Singapore and Thailand near completion. Property stocks soar on robust earnings Shares of real estate-related companies mostly rose last week on robust earnings. Real estate services provider PropNex jumped more than 30 per cent in the past week to $2.03, while its peer Apac Realty was up 13 per cent from Aug 8 to close at 72 cents on Aug 15, driven by higher home sales. PropNex on Aug 12 posted record net profit of $42.3 million for its first half-year, a 122.4 per cent increase from the year before and surpassing analysts' estimates. Apac Realty's net profit more than doubled to $11.3 million in the same period, the company said on Aug 8. Analysts said that sales momentum could remain strong, supported by a pipeline of upcoming launches. Developer City Developments Limited (CDL) was up 6.3 per cent to $6.73 and UOL rose more than 3 per cent over the week to close at $7.27. CDL's first-half net income rose 3.9 per cent to $91.2 million, with revenue up 8 per cent to $1.69 billion, driven by the fully sold executive condominium project Copen Grand. A special interim dividend of three cents per share was proposed, up from the two cents it paid out a year earlier. CEO Sherman Kwek told a briefing on Aug 13 that CDL will try to pay one-third of its net income as dividends every year and reward shareholders when divestments are made. Meanwhile, Pan Pacific and Parkroyal owner UOL's first-half net profit increased 58 per cent to $205.5 million due to strong performance from property development and property investments, and other gains from the disposal of Parkroyal Yangon, the firm said on Aug 13. CapitaLand Investment (CLI) shares fell 2.5 per cent from Aug 8, closing at $2.70 on Aug 15, on the back of weaker earnings. First-half earnings dropped 13 per cent , attributed to loss of contributions from divested assets, lower fund performance and transaction fees, and absence of a one-off tax write-back. CLI also attributed part of its performance to the downturn in China, where it has 18 retail and commercial properties. Group CEO Lee Chee Koon urged investors to be patient with the firm's investment returns, hinting at an improved performance in the second half of 2025 when SC Capital and Wingate are expected to deliver stronger returns. Dezign Format makes SGX debut Spatial design specialist Dezign Format surged 40 per cent in its trading debut on the Singapore Exchange's Catalist board on Aug 15, closing at 28 cents from its initial public offering (IPO) price of 20 cents. Dezign Format CEO Mike Chong said that the proceeds from the IPO will support the firm's regional expansion strategy, which includes establishing a Malaysian production facility and sales offices in Thailand and Vietnam. The company joins other firms, such as NTT DC Real Estate Investment Trust and Lum Chang Creations, to be listed on Singapore's stock exchange in 2025 amid a revival in IPOs. Another local firm, semiconductor optics company MetaOptics, is expected to list on the local bourse after it filed its prospectus on July 30 to list on the Catalist board. The group said it intends to use the IPO proceeds for areas such as product development, research and development, and strategic partnerships. Other market movers Shares of CNMC Goldmine surged more than 18 per cent over last week to close at a record 64.5 cents. The gold mining company posted strong earnings of US$15.8 million (S$20.3 million) for the first half, up 256.1 per cent year on year, driven by higher production and surging gold prices. Investment manager Yangzijiang Financial was up 9.3 per cent to $1.06, as first-half net profit increased 28 per cent to $137.7 million. This was largely attributed to the reversal of credit loss allowances, increased contributions from maritime joint ventures and net foreign exchange gains. What to look out for this week On Aug 18, Singapore will release its non-oil domestic exports data for July. DBS chief economist Taimur Baig forecasts a 6 per cent year-on-year contraction, marking a reversal from June's growth as an earlier boost from the front-loading of orders ahead of US tariff hikes tapers off. Sats is scheduled to release its business update for the first quarter ended June 30 on Aug 20, after the market closes.
Straits Times
4 days ago
- Business
- Straits Times
Singtel, Simba owner see positive share price action amid S'pore's telco shake-up
Sign up now: Get ST's newsletters delivered to your inbox SINGAPORE - An unexpected shake-up in the telecoms sector in Singapore this week has put its listed players – Singtel, StarHub, M1 owner Keppel and Simba owner Tuas – firmly in the spotlight. StarHub and Keppel were the laggards based on share price action. Singapore's largest telco Singtel ended the week higher after an initial fall following the Aug 11 announcement of Simba's acquisition of M1 . Simba's parent company, the Australia-based Tuas Limited, saw a big jump in its share prices on the Australian Securities Exchange compared to last week. StarHub's acquisition of MyRepublic's broadband business announced on Aug 12 was met with lukewarm response from investors. On Aug 14, it posted a poorer financial performance for the first half of 2025 compared to the same period last year. The telco closed at $1.17 on Aug 14, down 4.1 per cent from last week's close. It had reported a 41.7 per cent drop in profit for the first half of 2025, at $47.5 million compared to $82.1 million in the corresponding year-ago period. Analysts say StarHub could face headwinds in the immediate term after market consolidation. Morningstar rated the stock three stars – the investment research house's mid-level rating for fair risk-adjusted returns – based on its fair value estimate and low uncertainty, but also reduced its 2025 forecast while raising it from 2027 as it expects the mobile market to stabilise with better market structure. Top stories Swipe. Select. Stay informed. Singapore Ong Beng Seng fined $30k in case linked to ex-minister Iswaran after judge cites judicial mercy Asia Sun Haiyan, ex-China ambassador to S'pore, detained for questioning: Sources Singapore Jail for drink-driving cop in hit-and-run accident, victim suffered multiple fractures Life How do household bomb shelters in Singapore really work? Life Blank canvas: JTC offers black-and-white bungalows for lease at Rochester Park Singapore Fresh launches drive surge in new private home sales in July CGS International retained its 'hold' recommendation, citing the pace of market repair and cost optimisation, as well as merger and acquisition costs, as potential risks. At its results briefing on Aug 14 , Starhub remained bullish on its aggressive strategy to squeeze smaller mobile virtual network operator (MVNO) players. It said it would strive to be price-competitive with their low-cost arm and MVNO subsidiary eight, and look at areas to deliver higher value for customers such as more roaming allowances. Due to this shift, the company also reduced its earnings before interest, depreciation, taxes and amortisation outlook for the financial year 2025 to between 88 per cent and 92 per cent of its 2024 figures. Shares of asset manager and operator Keppel fell after it announced its sale of M1, with some observers noting that it had taken a $222 million accounting loss for the sale. Aug 11 was also the ex-date for Keppel's dividend of 15 cents. However, analysts remain optimistic about Keppel's outlook as it looks to capitalise on new digital infrastructure with the close to $1 billion in cash unlocked from the divestment. Keppel had also announced its $500 million share buyback programme at its results briefing on July 31, along with an interim cash dividend of 15 cents per share – which are positive signs for the company, the analysts said. The company's counter closed at $8.46 on Aug 14, down 1.4 per cent from last week's close. HSBC and CGS International reiterated their 'buy' ratings for the firm, citing the higher than estimated sale value of M1 as a boost for Keppel, as well as its ability to monetise sizeable assets. As for Singtel, the telco saw its shares jump 2.26 per cent from Aug 8, closing at $4.07 on Aug 14. It had initially dipped on Aug 11 after the announcement of rival telco Simba's acquisition of M1, dropping 1.76 per cent from last week to this week's lowest of $3.91. But shares rebounded on Aug 13 after it posted a higher net profit for its first quarter ended June 30, 2025, at $2.9 billion , a 317.4 per cent rise from $690 million in the year-ago period. Analysts agreed that market consolidation could be beneficial for Singtel, saying that the Simba-M1 merger could ease price competition and improve average revenue per user, which should bode well for the industry. But they were split on their outlook for it. HSBC held its 'buy' recommendation, forecasting a 1.4 per cent increase in net profit for financial year 2027 underpinned by growth in Singtel's data centre capacity and increased revenue for its Australian subsidiary Optus. CGS International, on the other hand, maintain its 'hold' call. It said significant asset monetisation exercises and increase in profits in key markets could be met with a sharp Singapore dollar appreciation, as well as increased competitive pressures and regulatory shifts in core markets. Simba owner Tuas has had the best run among the players involved. Since its counter resumed trading on Aug 12 after the M1 announcement, it had jumped 38.3 per cent from last week, closing at A$7.62 (S$6.36) on Aug 14 on the Australian exchange.
CNA
4 days ago
- Business
- CNA
StarHub's first-half net profit plunges over 40% as 'eroding prices challenge industry stability'
Singapore telco StarHub's net profit for the first half of 2025 plunged over 40% on-year to S$47.9 million, after a one-off payment to return certain spectrum rights. CEO Nikhil Eapen said "eroding prices" are challenging industry stability, and it is leaning into broadband, regional enterprise and cybersecurity services — segments that helped lift total revenue by 2.2%. Nicolas Ng reports.
Business Times
5 days ago
- Business
- Business Times
StarHub signals intention to go aggressive on acquisitions even as H1 profit falls 41.7%
[SINGAPORE] StarHub chief executive Nikhil Eapen on Thursday (Aug 14) declared that the telco will continue to be aggressive on acquisitions. '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. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 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.
