business

StarHub sees dramatic profit decline amid fierce price competition

Feb 12, 2026, 9:52 AM10
(Update: Feb 12, 2026, 9:52 AM)
telecommunication company in Singapore

StarHub sees dramatic profit decline amid fierce price competition

  • StarHub reported a significant fall in second-half earnings, dropping 50.9% to $38.5 million.
  • Full-year net profit decreased to $86.4 million, a 46.2% decline from the previous year.
  • StarHub anticipates ongoing competitive pressures but seeks to improve market share and customer experience.
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In Singapore, on February 12, 2026, StarHub announced a significant decline in its financial performance, revealing a 50.9 percent decrease in second-half profit, amounting to $38.5 million, down from $78.4 million in the previous year. This downturn reflects ongoing challenges in the local telecommunications market, where intense competition has eroded profit margins and sustained pricing pressures. For the financial year 2025, StarHub's net profit reached $86.4 million, a drop of 46.2 percent compared to the $160.5 million profits in 2024, signaling a concerning trend for the company within an increasingly difficult operating environment. The company also reported a 3.1 percent decline in second-half revenue, totaling $1.2 billion, as it faced pressures from its local competitors. Revenue for the entire year was slightly lower at $2.35 billion, a reduction of 0.6 percent from the prior year. Following the announcement, StarHub's shares fell by 5 percent, closing at $1.14, demonstrating investors' reaction to the disappointing earnings report. The final dividend announced was also down to three cents per share from 3.2 cents last year, highlighting a deeper concern regarding future profitability. StarHub's Chief Executive, Nikhil Eapen, described the financial outcomes as a reflection of the current operating landscape in Singapore, noting that while there was growth in the regional enterprise business, consumer telecommunications continually faced severe pricing pressure. Such challenges have impacted the pace of investment across the sector amidst rising competition, particularly driven by the entry of Singapore's fourth telco, Simba, which has contributed to substantial market disruption with its low-cost offerings. Looking ahead, StarHub forecasts lower earnings before interest, taxes, depreciation, and amortization (EBITDA) for 2026, projecting it will be 75 to 80 percent of the previous year’s figure of $403.6 million, which was a decrease of 12.3 percent from 2024. Additionally, the company plans to increase capital expenditures between 13 to 15 percent of its total revenue in 2026, up from 6.7 percent in 2025 and aims to achieve total cost savings of $70 million between 2026 and 2028 by optimizing its operations. Despite the current environment, there are early signs of stabilization in the market, and a sense of optimism persists as StarHub aims to defend its market share while innovating to improve customer experience.

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