By Megan Cheah

SINGAPORE--StarHub shares fell, after the telecommunications operator's second-half profit nearly halved from the same period a year earlier.

The stock fell 4.2% to 1.15 Singapore dollars in early Thursday trading.

StarHub's profit for the six months ended December dropped around 50% from a year earlier to S$38.5 million, equivalent to US$30.5 million.

The Singapore-based company's revenue for the second half dropped 3.1% to S$1.22 billion.

Telecommunications businesses in Singapore are experiencing prolonged price pressure, which continues to weigh on returns and the pace of investment in the sector, said StarHub Chief Executive Nikhil Eapen.

The telecommunications operator also gave its outlook for 2026, which Citi analysts described as weaker than expected.

StarHub expects its 2026 earnings before interest, taxes, depreciation, and amortization to be 75% to 80% of 2025's, reflecting sustained competition intensity in its consumer business. The fall could be partially mitigated by potentially stronger performance at its managed services business.

The company plans to spend 13% to 15% of total 2026 revenue on capital expenditure, aiming to invest in its cybersecurity and network segments.

The guidance likely negates any optimism around consolidation in Singapore's telecom sector, the Citi analysts said in a note. Analysts had expected the planned merger of rival telcos M1 and Simba Telecom to reduce sector competition in the city-state.

The soft guidance led Citi to remove its upside 90-day catalyst watch on StarHub's shares.

Write to Megan Cheah at megan.cheah@wsj.com

(END) Dow Jones Newswires

February 11, 2026 20:56 ET (01:56 GMT)

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