Good morning, everyone. Thank you for joining StarHub's first half 2026 results call.

My name is Crystal, and I take care of investor relations. This morning, we have with us our senior management led by our Chief Executive, Nikhil Eapen,

Hi.

Deputy CEO and Chief of Consumer Business, Matt Williams,

Morning.

CFO, Jacky Lo,

Good morning.

and Chief of Enterprise Business Group, Tan Kit Yong.

Good morning.

As usual, Nikhil and senior management will bring you through a quick presentation before opening the floor to Q&A thereafter. Nikhil, over to you, please.

Thank you very much, Crystal. A good morning to all of you, and welcome to our Q2 2026 earnings call.

As always over many years, thank you for your time and attention to the StarHub story. A lot of what I know we are all collectively focused on is what we call an incredibly dynamic consumer marketplace, but also a marketplace, while corrosive, is complex and going through change with downsides, perhaps also some opportunities.

As we have been doing for the past four quarters, I'd like to start by updating you on our progress, on where we stand on the four strategic pillars that we outlined and set out at the end of 2025 frankly. First, consumer, and this is actually where I'd like to spend a bit more time talking about some of the things that preoccupy all of us as a collective.

The market first of all, as we know, which has unfortunately, after a period of some minor stabilization at the end of '25 and the beginning of '26, has now returned to a period of corrosive competition driven by the incumbent with responses from the smaller operators. Unfortunately, ultimately this will cannibalize and increase transactional churn for all.

Now, our focus on the other hand, as has been on multi-brand and multi-market segmentation plus improving the monetization that we have by focusing on quality and customer value, not price. Therefore, what have we been doing over the past quarter?

First, monetization. We have focused on moving our subscribers onto our higher-value 5G+ plans under our StarHub brand.

Through this, they get better product, more value, and we see materially better yield metrics on all fronts when we do this: higher ARPU, lower churn, higher NPS. This move of our subscribers is proceeding at pace on our 5G+ plans, as Matt will talk about some more.

Second, within consumer, multi-brand, multi-market segmentation. The market, as we've been talking about, is split between three segments: premium, largely us and Singtel; digital, which is Circles, MyRepublic, which are the MVNOs, as well as giga!

and GOMO, which are the in-house brands; and of course a value segment, which is fast, large, and growing, Simba, Eight, now heya, parts of M1 and M1 Max. What the market is seeing and has been seeing is premium and digital shifting to value, reducing industry ARPU as customers downgrade their plans.

On the other hand, what we are doing is driving leading brands across these three segments: premium with StarHub; digital with giga!, which has been holding its own frankly; and Eight, which is the fastest-growing brand in Singapore with explosive year-on-year growth, but even here we are improving yield as we push our customers to higher-price, higher-value plans, and Matt will update on this. Now also notably, we have three brands operating across mobile and broadband: StarHub, Eight, and MyRepublic, and hence able to harvest and cross-sell effectively.

The consumer market has deteriorated overall over past years, as we know, but we have softened this to some degree by holding, and in time, even growing our revenue market share. As you probably know, our lead to the number three operator has now been extended to about 650 basis points.

Third, within consumer, we are driving consolidation, as we all know the genie is kind of out of the bottle for the sector here. You saw us acquire MyRepublic Broadband in phases, and we now own 100% of a fantastic broadband business which dominates the high-value gamer and geek segment.

A couple of years ago, we launched MyRepublic 5G, and now we are moving MyRepublic 4G onto our platform from their existing network provider, which brings us many, many tens of thousands of valuable subscribers, and this follows our fold-in of redONE. We believe there will be more to come of this as now there are very few MVNOs, and the MVNO business model, which pays out huge revenue share to their MNO host frankly, is not sustainable in a market like this.

Of course, there is the elephant in the room, which we must all acknowledge, on Simba's acquisition of M1, which has fallen away. The last and important factor is industry parity, and by this, I mean the fourth operator, which has had a free ride over the past many years without the same regulatory impositions and therefore with an arbitraged cost structure that allowed it to pull the market down and in the process take a lot of market share.

We have seen their acquisition of M1 fall away, and we also know that they very, very imminently have to fulfill now the same cybersecurity and resilience requirements as a CII provider, like the rest of us do. We also note the infractions that they have been found to have committed, which in part have lent themselves in the past to cost advantage.

With increased cybersecurity and resilience requirements imposed by the regulator, together with a sharper focus by the regulator on this kind of malpractice, this will eliminate the structural cost advantage that they have had and will help market sustainability under any scenario. Those are the four prongs of the first pillar on consumer.

On enterprise, as I said, the long-term government and enterprise spend environment in Singapore is strong. Smart Nation, digital, cloud, and AI transformation from government and enterprise continues, but shorter term, there are headwinds from rising hardware costs.

The way buyers are responding to this is deferring some of their spend. Also, we see a lot of clients insourcing app development away from the IT service providers that they typically used.

Overall, we would say our business in Regional Enterprise is well positioned because we get the long-term demand while being less exposed to some of the shorter-term headwinds. We are addressing this demand for Smart Nation and transformation in a differentiated way, as we've talked about, with modern digital infrastructure, which is a platform model, faster to deploy, more scalable, more value for our customers with better margins.

In Q1, you saw some delay in revenue recognition with project timing, and as you can see from our numbers, if you back things out, in Q2 we are very much back to growth. Revenue was up 5% across all of Regional Enterprise, including legacy lines, and up 24% actually for managed services.

We also saw our legacy lines hold or grow, for instance our enterprise mobility business to call out grew well for the first half year-on-year, as we were able to take market share with clients who actually trust us to deliver network quality with the resilience that they expect. Now, we had also denoted that 2026 was our year for scaling enterprise, and there are many ways in which we are doing this.

The first and the most visible way for all of us, which we disclose to you, is our order book, our 1-order book. We continue to grow our 1-order book at frankly explosive rates, almost 50% year-on-year with large deals, with large government and enterprise customers.

These are multi-year revenues. With this kind of order book growth, what that means is every year we start the year with committed revenue at a higher and higher percentage of targeted revenue, allowing us to compound towards growth.

Second, we are scaling by continuing to build our delivery muscle, which by insourcing allows us to control our delivery, scale faster, deliver for our customers better, and improve our margins. Number three, we will accelerate building this delivery muscle with small-scale selective M&A that has disproportionately positive impact on building delivery scale and insourcing margins relative to their size, and we have identified targets that we are engaged with.

Number three pillar, cyber. Now on cyber, we have always said we are a major telco running critical infrastructure serving government and large enterprises, and we have all seen the nation-scale threats in the media.

We will continue investing in cyber, resilience, and technology overall. And 2026 is an investment year; this drops off in 2027.

All telcos, all critical infrastructures providers beyond telcos will have to invest, but we are ahead of the game certainly versus the smaller players who will need to spend and modernize to catch up, and perhaps we can help them in doing so. Now, these cyber investments add to the security of our platform.

They secure ourselves, and they secure the modern digital infra platform we are serving our government and enterprise customers with. There is strong societal awareness of this; there is strong enterprise awareness of this, which translates into the differentiation of the platform that we bring to bear on behalf of our customers.

Now, last and important, you saw that we completed the divestiture to our co-shareholder of the 17% stake associated with the assignment of rights in Ensign, and this has allowed us to achieve material proceeds and register a large gain for the first half of 2026. Hence, we are booking a profit of over $250 million for the first half.

Also, as we retain a 38% stake, and we continue discussions with our co-shareholder for monetization of this remaining stake. Then the fourth pillar, cost optimization.

We have a large and growing pipeline of cost savings with the automation and simplification opportunities created by our transformation to date. As Jacky will discuss, we are very much on track with these run-rate savings with a 2028 target of $70 million per annum.

Two points: first, in a stabilized market, this will flow to profitability uplift, unlike our prior DARE+ run-rate cost savings, which achieved targets, but with extreme price competition, the benefit of which went to the consumer. Number two, we are working to increase this savings target, leveraging the automation and AI increasingly embedded in much that we do.

To round off on this page and the four pillars, underlying this are three things. First, our fortified balance sheet with large cash balances further fortified by the partial divestiture of our stake in Ensign, and more to come; M&A, whether for consumer consolidation, as we have been doing, or for enterprise selectively to accelerate our scaling; and number three, we are positioned on focusing for superior TSR in the future against what we see as current market displacement, while continuing our dividend commitment to shareholders, frankly without stress, given our balance sheet.

With that, I'd like to do a quick snapshot of our 2026 first half financial performance. First, our revenue for first half was $744 million, down about 7% year-on-year.

This was driven by material declines in consumer year-on-year with the hyper-competition that we've seen. Revenue $744 million, down about 7% year-on-year.

This was driven by material declines in consumer year-on-year with hyper-competition and a downward rebasing of ARPU. This was offset a bit when we convert customers to our new 5G+ plans because there we increase ARPU.

Our EBITDA for the first half was $159 million, with the year-on-year reduction in revenue from the consumer segment amplified in percentage terms because we have a largely fixed cost structure. It's really telco operating leverage, which has been working the wrong way, as it has in Singapore and for us over the last year.

Overall, our underlying net profit after tax further reflected this revenue and EBITDA reduction, further amplified, but also with the depreciation and interest expense from our two bands of 700 MHz spectrum kicking in this half, which we had to take on at prices set in set at the 2017-level auctions. Notwithstanding the above, our overall reported net profit after tax was $256 million for the first half 2026, including our gain from the Ensign partial divestiture, which fortified our capital position and positions us to drive long-term TSR through other strategies that we've outlined.

With this residual stake that we have, which based on this gain is worth about $322 million, we are working on further monetization, potentially executable within 2026. With that, I'd like to hand off to Jacky.

Thank you, Nikhil. Let me build on Nikhil's remarks by highlighting a few financial points for the first half.

The numbers on these slides are presented on a pro forma basis, excluding the financial results of Ensign for all periods presented. The first half continued to reflect a challenging operating environment, particularly in consumer, where competition remained intense and sector headwinds are persistent.

Against that backdrop, we kept operating expenditures broadly flat year-on-year at $352.2 million, helped by lower cost of sales and continued cost discipline across the group. Other income was higher than last year, primarily due to income grants and was broadly in line with our expectations.

EBITDA came in at $158.6 million, reflecting lower gross profit from the businesses experiencing revenue pressure. Reported net profit attributable to shareholders was $258.1 million, mainly due to the one-off gain of $245.7 million from the termination of the assigned rights and the remeasurement of the remaining 39% equity interest in Ensign.

Excluding this gain, underlying NPAT was $12.4 million, reflecting lower EBITDA together with higher depreciation and amortization. This is essentially the impact of operating leverage working against us in the current environment.

Despite these earnings pressures, our balance sheet remains strong. We closed the half with cash and bank balances of $515.7 million, generated operating cash flow of $124.2 million, and delivered positive free cash flow of $40.6 million.

Looking ahead, we continue to expect free cash flow to remain positive for the full year, even as planned investment in IT, cybersecurity, and network capabilities ramp up in the second half. During the quarter, we also completed the refinancing of our June bond maturity using proceeds from the bond issued last November.

Our debt maturity profile remains well spread, with no significant refinancing requirements in the near term. The only upcoming maturity is approximately $70 million in the first half of 2027, which is manageable given our strong liquidity position.

Net debt to EBITDA stood at about 2.4 times, giving us the financial flexibility to continue investing in the business. Turning to our outlook, our first half performance is broadly in line with the full year 2026 guidance we provided before, and we remain on track towards our EBITDA outlook of 75% to 80% of 2025 EBITDA.

CapEx payment for the first half were $63.6 million, representing 8.6% of total revenue. Expected investment activity will increase in the second half as we continue executing our planned programs across IT, cybersecurity, and network optimization.

After considering current market conditions, industry developments, and our investment commitments over the near to medium term, the board has declared an interim dividend of 3 cents per share for the half year ended June 30th, 2026. We also reaffirm our dividend outlook of the higher of 6 cents per share for the full year or in accordance with our dividend policy.

With that, I'll hand over to Matt to take you through the consumer update.

Good morning, everybody. Nice to speak again this quarter.

Let me take you through first of all the financials for the consumer part of the business, and then I'll talk a little bit about some of the dynamics and the things we've been focused on. As Nikhil has foreshadowed, you can see in the panel on the left of this chart, it's continued to be a challenging market for us, which puts significant pressure on revenue performance across mobile, broadband, and entertainment.

This is really driven by continued price competition broadly across the market across those product sets. Unfortunately, in the quarter, we've seen a resurgence of that price competition intensity led by the incumbent, but with others in the market following.

During that time, we've continued to focus on delivering high-quality experiences for our customers, either in the high-quality StarHub brand or in the value-orientated brand Eight, or in our digital brands of giga! and MyRepublic.

In terms of performance, you can see in mobile we've maintained our strong number two market share position. We have, despite those challenges, been able to hold our ARPU, so that is flat, and also hold our customer position.

Within that, of course, there is movement between the different brands. On broadband, we've maintained our number one market share position, and again been able to hold our ARPU as well as hold our customer position.

Overall, quite stable, but with the continuing trends around the market dynamics. If I turn to the next page just to give a little more color on that, as mentioned, unfortunately in the quarter, we saw a resumption of intense price competition, including from the incumbent now starting to discount the headline postpaid plans, which is not a positive development for the market, and the value players then also competing increasingly at the $10 and $12 as well as the $5 and $6 senior plans with very generous allowances, and unfortunately we've seen those allowances ratcheted up over the quarter.

On broadband, we've also seen continued price competition, particularly at or below the $30 price point for 10 Gbps, which makes it some of the cheapest broadband in the world. In terms of our approach, on the StarHub brand, we have continued to lead with the 5G Unlimited+ plans, and what we're seeing on those is a very positive and strong customer response.

We are moving our customers onto those plans, and with those plans of course, they get unlimited usage as well as generous roaming allowances. What we're seeing is significantly higher customer satisfaction, much higher NPS, much higher brand desire and performance, as well as then lower service issues, significant reduction in the cost to serve, as well as then much lower churn, building a much healthier base for us.

In broadband, we are maintaining our position by surgically responding to the aggression. Then across both mobile and broadband, we have relaunched our Hubbing proposition to offer both products to all of our customers, and seeing quite good traction in terms of combining customers on those products.

We've also then continued to build our market reach, building brand momentum as well as expanding our retail distribution in order to be there where consumers are shopping. Finally, I'm pleased to say that we've been working on the network, and in this quarter were awarded the P3 test champion for the quality of our broadband network leading in Singapore.

On Eight, we've continued to have strong momentum on customers of both mobile and broadband, both are now scaling very nicely, but also continuing to see improvements in the Eight ARPU, particularly as customers take 5G plans stepping up their spend from 4G. Shifting to MyRepublic, first of all on the broadband business that we acquired last year, that continues to track very well despite the level of price competition in the market, really because of the strong differentiation for gamers.

That differentiation also extends to new areas like our GAMERINA store at Suntec, which is proving to be incredibly successful and popular in selling various forms of playing cards. In this business, we also were awarded the Ookla fastest broadband award, again demonstrating that this is the best network for gamers in Singapore.

In addition, and as Nikhil called out, there is a shift to consolidate customers onto our network, and so we moved or have announced that we've moved or are moving the 4G MyRepublic customers onto our network to join the 5G MyRepublic customers that are already on our network. Another positive sign in the market, building on top of the earlier shift of the redONE MVNO customers into our Eight brand.

Overall, a lot of activity holding our position in market, but of course the market remains challenging. With that, I'll pass to Kit Yong.

Hey, thank you, Matt. Now, well, morning, everyone.

Let me run through the Enterprise segment. If we recall, our Q1, we didn't establish a year-on-year growth, right, due to timing.

For Q2 itself, we have come back, delivered the projects, and we have started to have a stronger momentum with far even stronger quarters ahead of us. Q2, we established a strong degree of our projects and we really converse our order book into in-year revenue.

For enterprise connectivity, it's flat. Look at the carrier and voice, well lower by 2.6% due to lower domestic and international leased line revenue and this is a continuing trend for telco business.

In fact, the whole industry on enterprise connectivity, carrier, and voice, the decline is -4% to 5%. If you look at our blended so-called decline, actually we're doing much better than the market, and we're holding our fort in keeping our clients.

We also established quite a good our mobility customer subscriber base as well, retaining our market share. These are the things that is going on.

Although it's a bit down, but we are not out, definitely outperforms the industry. We're in very good shape for enterprise business as to build momentums into our next few quarters and beyond.

All right, next slide. Continuing the building our enterprise momentum, look at the order book.

It's still, for whole region that we have, it's still at 49%, near 50% year-on-year growth. We want to focus on managed services.

This is our engine of growth, super critical to us. We're making a conscious effort to make sure that we focus on the recurring managed services, that's multi-year.

Hence, this is a symptom where you see that we have high order book, how come the revenue increase is not that significant, because we are looking at multi-year contracts, recurring revenues, and not solely focusing on one-time, off, within-in-year revenue, that kind of business in totality, but it's part of the business. That's a conscious shift to make sure that we have able to have a revenue mix that delivers our revenue and profitability this year, but also with mind the next 2 to 3 years, 5 years ahead of us, just compound recurring revenue that's in our backlog that we can deliver for our clients and build a stronger relationship with our clients.

This process, looking at what we are doing sustainable growth, is to really continue to defend and fight share of wallet for our telco business, grow our managed services that's integrated with our telco business and enterprise technologies as well. We'll continue to harness our regional integration.

In fact, if you look at last year, we're seeing some good wins, right, between Singapore and Malaysia joint projects, cross-border, data center, and RTS itself. We are part of the game and we are competing as one team for this cross-border projects.

Now, is it good enough? No, it's never good enough, because we need to scale our platform business as well, because the decline of telco, managed services growth managed to mute the revenue, but we need to grow profitability, and that's where scaling platform is a very important element.

How do we scale? Scaling through just selling more hardwares, we need to scale through platform, integrating our telecommunication network, be it mobile, fixed line, internet, enterprise data center, campus network, as one single network, unified network.

With network observability with data-driven, and we can fight cyber actors in our network through our capabilities we build in our network platform. To make this platform cost-efficient, lower the TCO, and make it resilient for our clients, we need to also establish capabilities in the East and West technology stacks for Enterprise segment.

It's frankly good for us, because cost pressure is real, because look at macro outlook itself, memory price going up, storage going up, technology costs, especially in the Western world, is rising rapidly. We've got to do a very smart way of managing Eastern technology, make it secure, zero trust, integrate as part of the platform that we build to give a robust infrastructure for Enterprise clients, which they truly appreciate.

Also our technology partner appreciate us, that the ability for us to look at the intricacy of integrating engineering architecture in building our platforms. We've been, if you look at our social media, we're getting good awards, not just for Singapore, in fact, APAC.

Our technology partners is giving us accolades and our abilities to execute when they compare us with their overall APAC partners. This is a very good feedback and recognition and validation from our technology partners, and our clients appreciate that as well.

With this, that's how we can improve our returns, drive sustainable and recurring revenue through platform managed services. This platform-led is services we offer is repeatable, scalable, and grapple more with StarHub branded managed services as our differentiator in the market.

With that, hand over to Jacky.

Thank you, Kit Yong. Let me give a quick update on our cost optimization program.

The key takeaway for the first half is that we have now achieved around 10% of the $70 million annualized savings ambition. While still early days, this gives us confidence that the program has moved from planning into execution.

As we've said before, this is not about tactical cost cutting. It's about structurally resetting our cost base by simplifying the business, removing legacy complexity, and improving productivity across our network, systems, and operating model.

Many of the larger network and systems-related initiatives naturally have longer implementation timelines, we expect savings to build progressively over the next couple of years as execution continues. Ultimately, the objective is not just lower cost.

It is to improve operating leverage, create capacity to reinvest in the business, and build a stronger, more sustainable operating model. With that, I'll hand back to Nikhil for the closing remarks.

Thank you, Jacky. To conclude, our goals for 2026 are very clear.

In consumer, our cornerstones are: A, driving monetization and yield with our higher-value 5G+ plans under our StarHub brand to drive ARPU uplift; B, to drive multi-brand, multi-market segmentation across premium, digital, and the no-frills segment with our four brands: StarHub, giga!, MyRepublic, and Eight across mobile and broadband for maximum cross-sell to maximize our revenue market share, where our lead as a strong number two is very, very significant; C, driving consolidation as we have continued to do, and where we believe opportunities across the spectrum are becoming available; D, a strong focus on industry parity, in particular as regards the fourth operator, to work towards a more sustainable market environment. Now on enterprise, our focus for 2026 is entirely on scaling.

Our 2026 outlook is based on prior order book and is relatively locked, subject to, of course, risks. The impetus is on winning order book, where we intend to continue the explosive growth rates we have seen with large deals, with the largest and most important customers.

Underlying this, we are focused on building our delivery muscle and raising our revenue-to-cash flow conversion, both organically and selectively inorganically. On cyber, we intend to continue to invest as an apex CII for ourselves, for Singapore, and for our government and enterprise customers.

Our investment hump is this year, and this is already yielding differentiation and benefits, with cybersecurity as a core focus for all in our society. We also intend to continue and complete our Ensign divestitures to fortify our balance sheet.

Last on cost, where we intend to stay very much on track with our targeted $70 million per annum of savings as we exit 2026, and hopefully add to this. Overall, 2026 is a very dynamic year for the telco sector in Singapore, for StarHub, and we intend to leverage our assets, our positioning, our balance sheet, and our position across our businesses to leverage this critical year to position for superior total shareholder returns in 2027 and beyond.

Thank you very much.

Thanks, Nikhil. We'll now open the floor to Q&As.

As usual, to join the question queue, please click on the raise hand button. We'll call upon your name, and when it's your turn to post your question, you can unmute yourself and share it.

First up, we have Sachin.

Hi, Sachin.

Hi, Nikhil. Actually, I have Hussaini also sitting on the same call because we are in the same call, and there's just two.

Quickly. Now that we have 24% total EBITDA decline in the first half, and the guidance is 20% to 25%, what are the factors which make it which make it safe or which make you believe that that's something you can maintain?

Is there it more cost savings? Is it some new revenue growth?

Can you share some color, what makes you confident to achieve the guidance given the first-half performance? I think that's my key question here,

yeah. Let me take that to begin with, and then I'll hand off to Jacky, and Matt and Kit Yong in fact if you'd like to add.

It's a few things. Yes, we are reiterating our guidance for the full year.

There are some cornerstones to this, the word that I like to use. Number one, when you look at our consumer business, as we talked about, yes, there are downgrades across the sector and premium continues to shift to the value segment, but we are holding key segments.

Very important, one of the comments which both Matt and emphasized and I emphasized, which is with our StarHub brand, we are upgrading our customers steadily to our 5G+ plans. When we do so, we are realizing improved metrics, as I said, across higher ARPU, lower churn, etc., etc.

We see the benefits of that coming through in terms of, our monthly recurring revenues from that base. That, I would point you to as a positive offset against the declining trends that we see.

It's a positive offset that frankly is really important to us because it really sets a foundation, not just for this year, but really for next year and the foreseeable future. It's driven off, quality and differentiation rather than price, which is why we like it.

That's point number one. Point number two, again, we just to clarify, we have a 1-order book this year, but we also had 1-order book from prior years.

We expect to see continue to see positive contributions and offsetting contributions for our enterprise business. Our hope and intent is for that to gather pace as we exit as we go into the back half of the year.

That's point number two. Point number three, you correctly point out cost savings.

Now, the cost savings against our plan are quite back-ended for 2027 and 2028, but yes, we are achieving cost savings this year. Then there are a number of other areas which are probably a little bit below the radar in terms of, kind of augmentation and other things where we hope to realize value and some buffer in order to meet and make our full-year guidance.

I'll pause there, leave it to Jacky to add any comments he'd like, and then also to Matt and Kit Yong.

I think actually it will be a combination of revenue growth and cost management, right? I think what we can really control is on the cost side.

We have identified the strategic cost management program, we have been executing. I think we expect more to come in the second half.

On the top line, it's we are focusing on executing our strategies. I think Matt and Kit Yong can elaborate more, but it's enterprise side would be scaling the business, executing the projects, converting order book into revenue.

On the consumer side, it's more on focusing on value and the quality and improve on the ARPU.

Just a follow-up on that. If you look at the consumer side, now that because of 5G Standalone, is that the reason that consumers are moving to 5G?

Is that the reason, and does it mean that that actually ARPU can be kind of stable from the levels here it is? Just to understand this whole saga, right?

5G, is it because of 5G Standalone that we are a little bit thinking that ARPUs can benefit or stabilize?

Sachin, I might chip in. Hello, nice to talk.

The StarHub customers are enjoying the standalone 700 MHz network, and so that then does provide a distinctly better quality. We do expect that to contribute to the overall dynamic around the 5G Unlimited+ plans.

What we're doing very actively is working into our customer base to offer those better and bigger plans to our customers and to have them move up through the pricing range. Plus also with Hubbing, we're having them add other services like broadband and entertainment, which also improves the total spend from those customers and with it, the total margin yield.

In addition to that, in the Eight business, as mentioned, we're also offering 5G, but this is not, yes, the 5G with 700 MHz. As we go forward, we're expecting to see those customers continuing to adopt 5G.

That's less of a, kind of a 5G+ story, it's much more of a just 4G to 5G story. That's also showing good signs of ARPU uplift.

Sachin, if I could maybe add two comments, add a comment picking up on two points made both by yourself and Matt, first on 5G SA and second on 700 MHz, because they really go to strategic differentiation. First on 700 MHz, you should note that this 700 MHz rollout that we have that we are in quite advanced stages of propagating is a unilateral rollout.

It differentiates our network quality and our 5G network availability on standalone vis-a-vis the smaller operators, both the smaller operators, which don't really have 700. The second point is on SA, and again, this is a strategic differentiation because what you may have noted in by reading in the media is that the a shut down of NSA was mandatory by the June 30th, 2026 deadline.

Singtel, ourselves, and M1 have completed this shut down, and the fourth operator has been granted a temporary extension. As when this temporary extension lapses, they will have to move to 5G SA, but they will have to deploy 5G SA on only two bands of 2.1 GHz spectrum.

By the way, those two bands of 2.1 GHz spectrum will not be redeployable for 4G. Again, we think, both the 700 MHz spectrum as well as the move to 5G SA will differentiate us, certainly against the smaller operators by a significant degree.

Got it. I think this is Hussaini actually on my call, yeah.

Hi. Good morning.

Just two questions. First is on the competition side.

Just trying to understand that since the IMDA press release on the smaller operators network breach, have we seen the competitive intensity from their side or their availability in the market, visibility in the market? At the same time, are we seeing the intensity from the larger operator, incumbent operator?

Because if we see the revenue growth for this quarter for the second quarter, there's quite a bit of divergence between StarHub and Singtel's growth. Just trying to understand that, that's question number one.

The second question is on net debt to EBITDA, which is around 2.4 times. I understand that StarHub is looking to acquire or do some small-ticket M&A in the enterprise space, and then there is also talks of consolidation.

Just trying to understand your leverage position in light of all these M&A initiatives. Although I do understand that there will be some cash flows coming from Ensign, but just trying to understand the overall balance sheet position.

Thank you.

Yeah. Maybe I can open up with some quick comments and then maybe pass it on to Matt and Jacky on the net debt to EBITDA question.

I would say overall, in terms of competitive intensity as far as the fourth operator, we have not seen that abate. However, we should also say it's a little bit less to the question of their competitive intensity.

I think it's a little bit on the come, and there are a few things you should look for. You should look for what are the consequences of the infractions that they have been found guilty of.

It's unclear what those consequences are today, but when the consequences come through, we'll all have to assess what that does for their position to drive competition in the marketplace in the way that they have. The second thing is this very important point that I made on 5G SA, because in an NSA world, there's an ability to pool 4G and 5G spectrum.

With 5G SA, you have to cleanly segregate your spectrum. In that world, as I mentioned, they only have two bands of 2.1 GHz, which goes to both, network quality as well as cost and capital, to for network availability.

Again, that's very much on the come and something to keep an eye out for. Singtel I will leave to Matt and the divergence, but I would like to say that look, we're kind of all in this world where, we're sort of evaluating quarter-on-quarter of differentials which are still negative for everyone.

I think we've really got to get out of that world. One quarter we may do a bit better, they may do a bit worse; one quarter they may do a bit better, we may do a bit worse, but it's still negative.

That's not really good for everyone. Hopefully, and hopefully, not too far away, we can be comparing, to use I was going to say I'll hand over to Matt to add more on those more very valuable points on that.

Just covering off net debt to EBITDA, I think the way to think about it is the enterprise acquisitions that we're looking to make are small and really don't have any material impact on our balance sheet. As I said, they're disproportionately positively beneficial because while they don't have any impact on our balance sheet and on net debt to EBITDA, they really are quite helpful, from a delivery standpoint, our ability to scale, and our ability to improve our margins through insourcing.

Now, as far as larger consolidations, we're pretty confident that we can keep them from a structural standpoint and from a sources and uses standpoint, within the envelope of our leverage and our net debt to EBITDA. We can't really talk about that, any more at this point other than to say, clearly there's a lot of thought around all alternative sources, uses, structure that goes behind beyond and behind, keeping to the right kind of capital structure envelope.

On the first piece, I'll ask Matt to add.

To be honest, I don't have much to add at this point. Obviously, Hussaini, the Singtel results only came out this morning, we have not had a chance to look at those in detail.

We will, and of course, we will always make sure that we're understanding those and looking for opportunities where they exist. I do think that the theme at the moment is around the sustained price competition, which impacts everybody.

I'll leave it at that.

Simba, the question was also, have you seen...

Simba are very clear on their positioning. They will always respond if there is aggression in their direction, which is what they have done during the quarter.

Look, we've seen a dynamic where the incumbent after two or three very weak quarters of performance has responded. During that time, of course, with the discontinuation of the transaction between Simba and M1, we've also seen the number three start to become much more active in the market.

Then, as is typically the case, we've been also seen the number four start to respond as well. That's essentially the dynamic.

Yeah.

On the net debt to EBITDA, if you look at our 2.4 times leverage ratio right now is still significantly below the covenant level, we have sufficient headroom as number one. Also if you look at our cash position, we have over $516 million of cash.

We expect to monetize the remaining stake in Ensign. Also we have unused facilities.

All these we are in a very good position in terms of liquidity.

Understood. Thank you very much.

Maybe just last one on the enterprise side. I see that there is a 49% and 52% increase in order book.

Is it possible to give you an indication in terms of, if that terminology fits here, book-to-bill ratio or something like that, in terms of order book relative to the current revenues? Thank you.

All right, sure. Thanks for the question, right.

For our managed services, as a business model, we are more focusing on recurring revenues, right, signing 3 to 5 years contract. That's our core focus.

We are very selective in those one-off, in-year revenue SI projects. We only do that because there is a longevity with the client that will move to managed services.

You can see that in this element of the order book that we have, 3 to 5 years contract, right, you can see that there will be in-year conversion for the first year. We're not just looking at this year.

In fact, the in-year revenue that we have this year is actually what we did last year. Last year, if you recall, we have also have a strong year-on-year order book growth, also multi-year.

We delivered some last year, and this year is a continuation of delivery, right, for example, some of the more public-known projects like the cell broadcast, the government tessellated, we are deploying now, and we have to get it up by end of this year. These are all high-value projects that we do to give us our profitability, leveraging on our core assets.

We are seeing that as a continuation to the new order book that we have, this will be the feature. There will be three elements of it in the order book.

First is our enterprise connectivity, mobility, is on the growth, we include the order book on that as well, that will deliver our in-year revenue. We have annual sources of revenue, which is on the SI project-led basis business that we have.

Then finally, is the platform-led managed services projects that we do. Three different kinds of sources of our projects and revenue, each has different gross margin and top-line profile.

They're all blend together for us to deliver our overall sustainable growth and our financial commitment, right. There we have a balance of portfolio to deliver each of our projects and now.

Sure. Thank you very much.

Thanks. With that, I think we will wrap up today's session.

Thank you, everyone, for spending your morning with us. As usual, please feel free to reach out if you have any more questions, or if you'd like to catch up with management.

Have a great weekend ahead.

Thanks, all.

Thank you. Thank you.