StarHub Q3 profit falls 82.4% to S$3.9 million amid high operating leverage, depreciation

[SINGAPORE] StarHub on Thursday (Nov 12) reported an 82.4 per cent drop in net profit to S$3.9 million for the third quarter ended Sep 30, from S$22.1 million in the year-ago period.

The telco attributed the fall to the impact of high operating leverage, as well as higher depreciation and amortisation.

Earnings before interest, tax, depreciation and amortisation (Ebitda) declined 26.3 per cent to S$72.1 million, from S$97.8 million in Q3 2025.

StarHub said that despite rising revenue, Ebitda continued to decrease because of lower gross profit, higher operating expenditure and lower income from other avenues.

Operating expenses rose mainly because of higher staff costs, which StarHub said reflected “deliberate investments in capabilities and business growth”.

In response to queries from The Business Times, a StarHub spokesperson said the investments were aimed at “strengthening core functions and building enterprise capabilities as we scale the business”.

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These investments were being made “alongside our ongoing cost optimisation efforts”, noted the spokesperson. StarHub did not share how much staff costs rose.

Revenue rose to S$486.8 million in Q3 2026, up 4.5 per cent from S$464.8 million a year earlier.

Service revenue grew 2.9 per cent to S$396.1 million, from S$384.9 million in the previous corresponding period.

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The telco attributed the growth in service revenue to an 18.4 per cent year-on-year revenue increase in the enterprise segment.

However, the consumer segment – which comprises mobile, broadband and entertainment – saw a decline across its revenues.

Compared with Q3 last year, mobile revenue was down 6 per cent, broadband revenue dropped 4.1 per cent, and entertainment revenue fell 10.6 per cent.

StarHub noted that both mobile and broadband revenue declined amid falling subscription revenue due to price competition.

Mobile average revenue per user (ARPU) stood at S$19.20, down from S$21.70 in Q3 2025.

Broadband ARPU fell to S$31.90 from S$34.10 in the year-ago period. The telco attributed the fall to price competition, despite rising customer subscriptions.

“Q3 reflects early signs of revenue stabilisation with improving enterprise momentum and broadly stable consumer performance,” noted StarHub in a bourse filing.

Outlook remains in line

The telco noted that it is expected to achieve the target it has set earlier this year.

This includes achieving 75 to 80 per cent of its FY2025 Ebitda, as well as its capital expenditure commitment of 13 to 15 per cent of its total revenue.

Moreover, StarHub reiterated its dividend policy, which is to distribute the higher of S$0.06 a share or at least 80 per cent of net profit adjusted as a one-off.

Its nine-month net profit, excluding Ensign, stood at S$262 million.

StarHub added that it is on track to achieving its S$70 million in cost savings. It noted that in the year to date, it has achieved 15 per cent of its cost-savings targets.

Talks with Keppel are still ongoing with regard to a possible transaction in relation to M1, the telco noted.

A separate bourse filing on Thursday confirmed that CEO-designate Matt Williams will take on the role of both CEO and executive director on Jan 1, 2027.

As at the midday trading break on Thursday, shares of StarHub were up 1 per cent or S$0.01 at S$1.05.