Latest news with #telco
CNA
a day ago
- Business
- CNA
CNA938 Rewind - Telco shake-up: Simba buys M1 mobile, StarHub fully acquires MyRepublic
Singapore-based Keppel is selling M1's telecom business to rival Simba Telecom for $1.43 billion, marking the first major telco consolidation in Singapore's history. Meanwhile, StarHub is set to take full control of MyRepublic's broadband business. Andrea Heng and Hairianto Diman explore what these moves mean for the industry and how existing customers of all three providers could be affected with Manoj Menon, Founder, Twimbit.
CNA
a day ago
- Business
- CNA
StarHub completes acquisition of MyRepublic's broadband business in S$105 million deal
SINGAPORE: StarHub has fully acquired MyRepublic's broadband business, the telco announced on Tuesday (Aug 12). The telco, which owns a 50.1 per cent stake in MyRepublic Broadband, has bought the remaining 49.9 per cent, according to a media release. The latest transaction includes the MyRepublic brand in Singapore and "certain key operational assets" that are associated with its broadband business and operations. The deal is worth S$105.2 million (US$81.8 million) comprising S$94.3 million for the shares and S$10.9 million for MyRepublic Broadband's assets, according to a filing on the Singapore Exchange (SGX). "This move strengthens StarHub's multi-brand, multi-segment strategy in the Singapore broadband market and enables greater value creation through service differentiation and cross-product bundling," said StarHub. "This isn't just an acquisition. It's an acceleration,' said StarHub CEO Nikhil Eapen, adding that the company has "laid a strong foundation for growth". With StarHub now having full ownership of MyRepublic Broadband, the telco can "move faster, go further, and serve customers with even greater clarity and care", he added. Mr Eapen said that Singapore's broadband landscape is in a "phase of consolidation". "As the market shifts, scale, quality, and resilience matter more than ever. Smaller players may find it harder to sustain, especially without robust platforms. "Our role is to step up to provide the reliability, performance, and consistency that customers deserve at a time when they need it most." The acquisition comes a day after asset manager Keppel said it will sell M1's telecom operations to operator Simba Telecom for an enterprise value of S$1.43 billion (US$1.11 billion). StarHub in 2022 obtained regulatory approval from the Infocomm Media Development Authority to acquire the majority stake in MyRepublic Broadband.
CNA
a day ago
- Business
- CNA
StarHub completes acquisition of MyRepublic in S$105 million deal
SINGAPORE: StarHub has fully acquired broadband provider MyRepublic, the telco announced on Tuesday (Aug 12). The telco, which owns a 50.1 per cent stake in MyRepublic, has bought the remaining 49.9 per cent, according to a media release. The latest transaction includes the MyRepublic brand in Singapore and "certain key operational assets" that are associated with the broadband's business and operations. The deal is worth S$105.2 million, comprising S$94.3 million for the shares and S$10.9 million for MyRepublic's assets, according to a filing on the Singapore Exchange (SGX). "This move strengthens StarHub's multi-brand, multi-segment strategy in the Singapore broadband market and enables greater value creation through service differentiation and cross-product bundling," said StarHub. "This isn't just an acquisition. It's an acceleration,' said StarHub CEO Nikhil Eapen, adding that the company has "laid a strong foundation for growth". With StarHub now having full ownership of MyRepublic, the telco can "move faster, go further, and serve customers with even greater clarity and care", he added. The acquisition comes a day after asset manager Keppel said it will sell M1's telecom operations to operator Simba Telecom for an enterprise value of S$1.43 billion (US$1.11 billion).
CNA
2 days ago
- Business
- CNA
M1's journey: From its bright beginnings to delisting and its proposed sale
SINGAPORE: When M1 launched in 1997, the telco's popularity grew quickly – within a month, it had captured 10 per cent of the market share, or 35,000 subscribers. The company, which started life as MobileOne – a consortium formed by Keppel, Singapore Press Holdings (SPH), Cable & Wireless and Hong Kong Telecom – was the second telco in Singapore. Its market share ballooned to a third in the next five years, with about 1 million subscribers. It launched an initial public offering and became a publicly listed company on the Singapore Exchange (SGX) in 2002. The company was valued at between S$1.2 billion and S$1.5 billion then, making it the biggest share offering since 1999. But it has not always been smooth sailing for M1, as it struggled with increased competition. On Monday (Aug 11), Keppel announced that it would sell M1's telecom operations to Simba Telecom for an enterprise value of S$1.43 billion (US$1.11 billion). M1 currently has 13.5 per cent of Singapore's prepaid mobile market, 23.9 per cent of the postpaid mobile market and 15 per cent of the broadband market, according to a regulatory filing on the Australian Securities Exchange by Simba's owner, Australian-listed Tuas. The company made significant inroads in its first two decades of service. In 2005, M1 launched consumer 3G services – the first operator in Singapore to do so. That same year, Malaysian telecommunications conglomerate Axiata bought a 12.1 per cent stake in the company for S$260.8 million. Over the next few years, it became the first in Singapore to launch an islandwide wireless broadband service as well as Southeast Asia's first 4G network. M1 shares hit a high of S$3.99 in March 2015, but competition was never far away. StarHub entered the market in 2000 as Singapore's third telco, followed in 2016 by TPG Telecom, which would become Simba. The country also opened up to mobile virtual network operators (MVNOs), and contestation grew. The competition took its toll, and a year later, M1 shares had almost halved in value. Reuters reported that M1's shareholders – SPH, Keppel and Axiata – had approached China Mobile to sell their majority stake. More reports emerged that Chinese companies Shanxi Meijin Energy and China Broadband Capital were preparing to make separate bids for M1. None of those deals materialised. BUYOUT AND DELISTING By September 2018, M1's share price had dropped by almost 60 per cent since its high in 2015. That same month, Keppel and SPH offered to buy shares they did not already own in M1. The companies said then the move was to 'arrest the decline in M1 shareholder value through a combination of transformational efforts which are expected to take several years'. The deal would allow M1 to cooperate further with other Keppel units and allow SPH to provide digital content through M1's mobile platform, the companies said. At that point, the companies valued the telco at S$1.9 billion. In December, Keppel and SPH announced their 'firm intention' to make a voluntary general offer. By January 2019, the two companies launched an offer to buy out majority shareholder Axiata and gain control of M1. That offer was accepted the following month and it sold its 28.7 per cent stake. It meant Keppel and SPH collectively owned 90.15 per cent of M1's shares. To be listed on the stock exchange, the total number of shares in a company that is issued to the public must be at least 10 per cent. With M1 no longer meeting this requirement, it was delisted from the SGX in April 2019. In 2020, a joint venture between M1 and Starhub won the rights to build Singapore's two nationwide 5G networks. The other telco was Singtel. SALE In its announcement on Monday, Keppel said it would receive S$1 billion in cash proceeds for its stake in M1. Keppel will retain the information and communications technology business, including data centres and subsea cables. The company said it hopes to complete the proposed sale "over the next few months", adding that Simba had submitted the strongest bid among interested parties. Simba is wholly owned by Australia-listed Tuas. In a separate statement, Tuas said it is looking to raise at least A$416 million (US$271 million) through a placement and share purchase plan.
Yahoo
4 days ago
- Business
- Yahoo
Swisscom AG (SCMWY) Q2 2025 Earnings Call Highlights: Strong Brand Recognition Amid Revenue ...
Release Date: August 07, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Swisscom AG (SCMWY) was nominated as the strongest telco brand in Switzerland and achieved a record score in a mobile hotline test, highlighting excellent customer service. The launch of Beam, a new convergent B2B connectivity portfolio, has been well-received, with promising sales numbers. Integration progress in Italy is on track, with synergy ramp-up and integration costs as planned. The company confirmed its full-year guidance, with revenue expected at the lower end of the range but stable overall. Network expansion continues with increased 5G and FTTH coverage, enhancing connectivity and service quality. Negative Points Q2 revenues were slightly lower than Q1, with a 2.3% decline in the first half of the year. EBITDA decreased by 5.5%, mainly due to integration work in Italy, impacting financial performance. The B2B market faces strong pricing pressure, leading to a decline in service revenue. Copper phase-out savings are currently limited and smaller than the costs associated with the shutdown. The Italian B2C mobile business is experiencing service revenue erosion, with declines expected to be at the high end of guidance. Q & A Highlights Warning! GuruFocus has detected 5 Warning Sign with SCMWY. Q: On competitive dynamics in Switzerland, is Swisscom willing to see some subscriber market share loss given its high starting point? How do you balance value versus volume? Also, are we still expecting a CHF100 million decline in Swiss service revenue, and is there any quarterly seasonality to note? A: Yes, Swisscom is willing to see some market share loss to focus on value over volume. We are losing market share in broadband and postpaid, but this aligns with our strategy to maintain value in our customer base. Regarding service revenue decline, the guidance remains at CHF100 million, but it might be safer to expect around CHF110 million for the full year due to a slightly higher run rate. Q: In Italy, how have price rises been received for the Fastweb and Vodafone brands, and does this impact the guidance of a minus EUR200 million in Italian telco revenue declines? A: We have not executed back book price increases yet, but we have increased front book pricing, which has been well received. The market is positive about these increases, and we are seeing higher inflow ARPU. We will provide more information in the Q3 call after launching the new portfolio. Q: Can you comment on trends in IT service revenues and wholesale in Italy, and is there any seasonality to consider for the rest of the year? A: We expect some acceleration in IT service revenue in the second half of the year, though it's hard to predict due to the nature of contracts. Wholesale is not yet at full run rate, as we are still migrating customers, so further increases are expected. Q: Regarding the copper switch-off, what level of savings have you seen so far, and what could the overall savings look like by the time of full shutdown in 2035? A: Currently, copper savings are limited and smaller than the costs of shutdown due to ongoing migration costs. However, we expect a run rate of CHF100 million in savings from the full copper shutdown, driven by energy savings, customer care savings, and lower field service interventions. Q: In Italy, you mentioned a more rational market. What are you seeing that indicates this? Also, can you provide context on the size and margins of the Italian energy offering? A: The market is more focused on aligning back book and front book prices and less aggressive in acquiring new customers. This focus on customer base value is positive for reducing churn. The energy offering is a solid double-digit revenue business with healthy margins, accretive to our EBITDA and operating free cash flow. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
