StarHub Q1 profit plunges 81% to $5.9m on weaker consumer revenue

Revenue, EBITDA and cash flow declined even as enterprise and cybersecurity offset losses.

StarHub reported net profit attributable to shareholders of $5.9m in the first quarter (Q1) of 2026, down 81.3% year on year (YoY), according to its business performance update released on 7 May.

Total revenue fell 6.1% YoY to $507.3m, whilst service revenue declined 3.9% to $445.7m. EBITDA dropped 22.5% to $77.7m, and free cash flow decreased 16.9% to $26.6m.

Service revenue weakness was driven mainly by lower consumer contributions, where revenue fell 10% to $228.6m. Mobile, broadband, and entertainment segments all recorded declines, partly offset by growth in enterprise connectivity, carrier and voice services, and cybersecurity.

The enterprise segment reported mixed performance. Regional enterprise revenue fell 4.8% to $139.4m due to lower managed services revenue, which declined 10.8% on timing of project recognition, which was partially offset by growth in connectivity and voice services.

Cybersecurity revenue rose 22.4% to $77.7m. StarHub said its regional enterprise orderbook grew more than 50% YoY, supported by multi-year digital infrastructure contracts.

The company’s balance sheet showed cash of $867.2m as at 31 March. Net debt to trailing 12-month EBITDA rose to 2.09 times from 2.00 times at end-2025.

StarHub said it divested a 16.81% stake in Ensign in April 2026 for cash proceeds of $121 million, with estimated fair value gains of $244m. Following the transaction, Ensign will be accounted for as an associate rather than a subsidiary.

The group said it continues to focus on cost optimisation measures, including network and systems restructuring, with an additional $10m in savings identified from network optimisation.