StarHub expects more virtual telco consolidation; H1 profit jumps on one-off Ensign gain

[SINGAPORE] StarHub expects smaller mobile virtual network operators (MVNOs) to be consolidated by larger telcos, said Nikhil Eapen, CEO of the telecommunications company on Thursday (Aug 13).

“There’s a natural progression in which MVNOs will sort of gravitate and then be absorbed and adopted by the large, well-capitalised players,” he noted. “I should expect that to continue.”

His comments follow an Aug 6 announcement that MyRepublic Mobile 4G customers will migrate to StarHub’s network. The migration is expected to bring “many tens of thousands” of customers onto StarHub’s platform, added Eapen.

This arrangement builds on StarHub’s full acquisition of MyRepublic’s broadband business last year.

“This is kind of a continuum of sorts; it is a little bit of a completion of a journey,” said Eapen at a media briefing on Thursday.

Asked whether StarHub had discussed acquiring MyRepublic’s mobile business, he did not answer directly.

His comments come at a time when Singapore telco operators are facing shrinking margins, amid intense competition in the consumer space.

“I think the completion of this journey has perhaps got added impetus from the very poor state of the sector,” he said.

“When you have a sector that is poor, it favours those larger players who have strong capital and balance sheets and lasting power.”

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StarHub’s blended average revenue per user (ARPU) for the period ended Jun 30 stood at S$20, down from S$21 the year before.

Singapore’s mobile ARPU has fallen by between 36 and 41 per cent since 2017, noted a Maybank Research report in 2025, amid rising price competition.

H1 results

StarHub posted a jump in net profit to S$255.6 million for its first half ended Jun 30, from S$47.9 million in the previous corresponding period, mainly due to a one-off non-operating gain from the termination of aggregate assigned rights in Ensign InfoSecurity.

Earnings per share stood at S$0.146 for the half-year period, up from S$0.026 in the previous year.

Revenue in H1 fell 14.1 per cent to S$969.7 million, from S$1.13 billion in the year-ago period. This was due to lower contributions from both its consumer and enterprise segments, along with the deconsolidation of Ensign.

Disposal by end of the year

Established in 2018, Ensign is a cybersecurity joint venture between StarHub and Temasek Holdings.

Eapen said that StarHub intends to dispose of the remaining 38 per cent stake in Ensign, and is in continuing discussions to do so. It is seeking to complete the disposal by the end of the year.

A sale will enable the telco to fortify its balance sheet and “capitalise on opportunities in the marketplace” when available, he added.

The management indicated that StarHub remains on track towards its initial full-year earnings before interest, tax, depreciation and amortisation (Ebitda) guidance of 75 to 80 per cent of the 2025 Ebitda.

An interim dividend of S$0.03 per share was declared for the half year, unchanged from the year before. The dividend will be paid on Sep 4.

The shares of StarHub closed S$0.02 or 1.9 per cent higher at S$1.10 on Thursday, after the results.