# StarHub Ltd — 1H 2026 Financial Results Webcast Briefing

Event: 1H 2026 Financial Results Webcast Presentation & Analyst Q&A
Date: 14 August 2026
Issuer: StarHub Ltd (SGX:CC3)
Provenance: automated speech recognition (asr) of the issuer's public webcast recording
Source recording: https://ir.starhub.com/misc/results/webcasts/2026/1H2026-Recording.mp3
Official record: https://ir.starhub.com/
Presenters: Nikhil Eapen (Chief Executive Officer), Dennis Chia (Chief Financial Officer)
Words: ~7,523

Unofficial machine transcript. Prepared by SMID Research from the issuer's public webcast recording by automated speech recognition, without a full manual check: expect mis-heard names and figures. There is no speaker attribution: the source recording carries no diarisation, so cues are shown as timestamp and text only; timestamps refer to the recording. Not a company publication. StarHub Ltd's own investor relations page (https://ir.starhub.com/) is the authoritative record. Copyright in the briefing rests with StarHub Ltd; contact contact@smidresearch.com for corrections or removal.

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[00:00:00] Good morning everyone. Thank you for joining Star Express half-26 results call. My name is Crystal and I take care of the investor relations and this morning we have with us our senior management led by our chief executive, Michael Ethan. Hi. Deputy CEO and chief of consumer business, Matt Williams. Morning. CFO Jackie Lo. Good morning. And chief of enterprise business group, Dan Kit Yong. Hey morning. As usual, Before I see the measurement, we'll bring you through a quick presentation before opening the floor to Q&A, say after. Would you like to open the mic, please? Thank you very much, Crystal. And first of all, good morning to all of you, and welcome to our Q2 2026 earnings call. And as always, over many years, thank you for your time and attention to the startup story. So 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

[00:01:03] also some opportunities. So 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. So 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. And unfortunately, ultimately, this will cannibalize and increase transactional churn for all. Now our focus on the other hand, as you know, 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. So therefore, what have we been doing over the past quarter? First, monetization. So we have focused on moving our subscribers onto our higher value 5G plus plans under our Starhub brand.

[00:02:07] So through this, they get better product, more value, and we see materially better yield metrics on all fronts when we do this. Higher R-pool, lower churn, higher NPS. So this move of our subscribers is proceeding at pace on our 5G plus plans as Matt will talk about some more. Second within consumer multi-brand multi-market segmentation. So the market as we've been talking about is split between three segments premium largely us and Singtel digital which is circles my republic which are the MVNOs as well as Gomor and Giga which are the in-house brands and of course the value segment which is fast large and growing so Simba eight now high parts of of M1 and M1 max. And what the market is seeing and has been seeing is premium and digital shifting to value, reducing industry R2 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,

[00:03:07] and 8, 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 Mac will update on this. Now, also notably, we have three brands operating across mobile and broadband, Starhub, 8 and MyRepublic, and hence able to harvest and cross-sell effectively. So the consumer market has deteriorated overall over past years as we know, but we have softened this to some degree by holding it in time, even growing our revenue market share. And as you probably know, our lead to the number three operator has now been extended to about 650 basis points. And third, within consumer, we are driving consolidation, as we all know that Gini is kind of out of the bottle for the sector here. So you saw us acquire MyRepublic broadband in phases, and we now own 100% of a fantastic broadband business which dominates a 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

[00:04:08] from their existing network provider, which brings us many, many tens of thousands of valuable subscribers. And this follows our folding of red one. So we believe there will be more to come of this as now there are very few MB&Os and the MB&O business model which pays out huge revenue share to their M&O host, frankly is not sustainable in a market like this. And of course there is the elephant in the room which you 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 arbitrage cost structure that allowed it to pull the market down and in the process take a lot of market share. So 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. And we also know the infractions that they have been found to have committed,

[00:05:09] which in part have lent themselves in the past to cost advantage. So with increased cybersecurity in 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. So those are the four prongs of the first pillar on consumer. So 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. So the way buyers are responding to this is deferring some of their spend. And also we see a lot of clients in sourcing app development away from the IT service providers that we've typically used. But overall, we would say our business and regional enterprise is well positioned because we get the long-term demand while being less exposed to some of the shorter term headwinds. And we are addressing this demand for smart nation and transformation in a differentiated way, as we've talked about

[00:06:09] with modern digital infrastructure, which is a platform model faster to deploy more scalable, more value for our customers with better margins. So, you know, 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 is 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 through 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, one order. And we continue to grow our one order at frankly explosive rates, almost 50% year on year

[00:07:12] with large deals with large government and enterprise customers. And these are multi-year revenues. So with this kind of order of 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, 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 impacts on building delivery scale and in sourcing margins relative to their size. And we have identified targets that we're 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. So we will continue investing in cyber resilience

[00:08:14] and technology overall. And 2026 is an investment here, this drops off in 2027. So 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, the 17% stake associated with the assignment of rights and insight. And this has allowed us to achieve material proceeds and register a large gain for the first half of 2026. So hence we are booking a profit of over 250 million for the first half.

[00:09:14] And also, as you know, we retain a 38% stake and we continue discussions with our co-shareholder for monetization of this remaining stake. And then the fourth pillar, cost optimization. We have a large and growing pipeline of cost savings with the automation and simplification opportunities created by a transformation today. As Jackie will discuss, we are very much on track with these run rate savings with the 2028 target of 70 million per annum. Two points, first in a stabilized market, this will float profitability uplift unlike our prior debt plus run rate cost savings which achieved targets, but with a stream price competition, the benefit of which went to the consumer. Number two, we are working to increase the savings target leveraging the automation and AI increasingly embedded in much that we do. So 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

[00:10:15] 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 different commitment to shareholders frankly without stress given our balance sheet. So 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 the downward rebasing of our pool. This was offset a bit when we convert customers to our new 5G plus plans because there we increase Our rebidar 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. So it's really telecooperating leverage which has been working the wrong

[00:11:17] 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 megahertz spectrum kicking in this half, which we had to take on at prices 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. And with this residual stake that we had, which based on this gain is worth about $322 million, we are working on further monetization, potentially executable within 2026. So with that, I'd like to hand off to Jackie. Thank you, Nikhil. Let me build on Nikhil's remarks by highlighting a few financial points for the first half. The number of these slides are presented on a performer basis, excluding the financial

[00:12:19] results of enzymes for all periods presented. The first half continues to reflect a challenging operating environment, particularly in consumer, Our competition remained intense and sector headwinds persisted. Against that backdrop, we kept operating expenditures broadly flat beyond here at $152.2 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 growth profit from the businesses experiencing rapid impression. 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 remesement of the remaining 39% equity interest in Ensign. Excluded this gain, underlying impact was 12.4 million,

[00:13:21] reflecting lower even down together with higher depreciation and organization. This is essentially the impact operating leverage working against us in the current environment. Despite these earnings pressures, our bond sheet remains strong. We close the half with cash and back balances of $515.7 billion, generate an operating cash flow of $124.2 million, and deliver a 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 with 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 issue last November. Our debt maturity profile remains widespread, with no significant refinancing requirements in the near term. The only upcoming maturity is possibly $70 million in the first half of 2027, which is manageable given our strong liquidity position.

[00:14:23] Net debt to EBITDA stood at about 2.4 times, giving us the financial flexibility to continue investing in the business.

[00:14:32] 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 percent of 2025 EBITDA. Tenpax payment for the first half were 83.6 million, representing 8.6 percent of total revenue. An 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-median term, the broad has declared an interim dividend of $0.03 per share for the half-year and the June 3rd year, 26. We also reaffirmed our dividend outlook of the higher of $0.06 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. So let me take

[00:15:35] 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. So first of all, as Nikhil has foreshadowed, you can see in the panel on the left of this chart, but it's continued to be a challenging market for us, which has put significant pressure on revenue performance across mobile, broadband and entertainment. This is really driven by continued price composition broadly across the market, across those product sets. And 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 delivering high quality experiences for our customers, either in the high quality startup brand or in the value orientated brand eight or in our digital brands of Giga and MyRepublic. So in terms of performance, you can see in mobile, we've maintained our strong number two

[00:16:36] market share position. We have despite those challenges been able to hold our arford 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. So overall, quite stable but with the continuing trends around the market dynamics. But to the next page, just to give a little color on that, as mentioned, unfortunately the quarter we saw a resumption of intense price competition, including from the incumbent now starting to discount the headline post-bake 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

[00:17:37] we've seen those allowances ratched up over the quarter. On broadband, we've also seen continued price competition, particularly at or below the $30 price point for 10 gigabits per second, 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 plus plans. And what we're seeing on those is this very positive and strong customer response. We are moving our customers onto those plans. And with those plans, of course, they get limited usage, as well as generous roaming allowances. And 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. So significant reduction of the cost serve, as well as then much lower churn. So building a much healthier base for us. In broadband, we are maintaining our position by surgically according to the aggression.

[00:18:37] And then across 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 most 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. And finally, I'm pleased to say that we've been working on the network and in this quarter, we're awarded the P3 test champion for the quality of our broadband network leading in Singapore. On 8th, 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 8th ARPU, particularly as customers take 5G plans, stepping up their spin from 4G. Shifting to my Republic, 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,

[00:19:38] really because of the strong differentiation for gamers. And that differentiation also extends to new areas like our Card Arena store at Suntech, 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 the QL called out, there is a shift to consolidate customers onto our network. And so we moved, or announced that we've moved, or are moving, sorry, the 4G Maripubic customers onto our network to join the 5G Maripubic customers that are already on our network. Another positive sign in the market, building on top of the earlier shift of the red one in V&O customers into our eight brand. So overall, a lot of activity holding our position market, but of course the market remains challenging. With that, I'll pass to Kit Yong.

[00:20:41] Great, thank you Matt. Now, well, good morning everyone. So let me run through the enterprise segment. And recall Q1, we didn't establish a year-to-year growth due to timing. And for Q2 itself, we have come back, delivered the projects, and we have something to have a stronger momentum, we for even stronger for the heat of us. So Q2 we established a strong degree of our projects and it really covers our order book into Indian revenue. So for enterprise connectivity it's flat and look at the carrier employees that were lower by 2.6 used to lower domestic and financial lease line revenue and this is a continued trend for telco business and in fact the whole industry for enterprise connected carrier and voice. The decline is negative four to five percent and if you look at our blended so-called decline actually we're doing much better than market and we're

[00:21:45] holding our thoughts in keeping our clients and we also establish quite a good mobility customer subscriber base as well so retaining our market share. So these are the things that is going on So although it's a bit down, but we are not out, definitely outperforms the industry. So we have very good shape for enterprise business as we build momentum into our next few quarters and beyond. Right, next slide. So continuing the building our enterprise momentum, look at our book is still a whole region that we have. It's still at 49 near 50% year-to-year growth. And we want to focus on many services. This is our NG.group. super critical to us and we're making a cautious effort to make sure that we focus on recurring managed services that's multi-year and hence this is a symptom where you see that we have higher order book how come the revenue increase is not as significant because we are looking at multi-year

[00:22:49] contracts recurring revenues and not solely focusing on one time off within in-year revenue the kind of our business in totality, but it's part of the business and that's a cautious shift to make sure that we have able to have a revenue mix that delivers our revenue and property this year, but also with mine the next two, three years, five years they've got a hit 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 and this process looking at what we're doing sustainable growth is to really continue to defend and price share of wallets for our telco business through our many services that's integrated with our telco business and enterprise technologies as well and we continue to harness our regional integration. In fact if you look at last year we're seeing some group wins right which is 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

[00:23:57] cross-border projects. Now it is good enough, no it's never good enough because we didn't scale our platform business as well because the decline of telco managed to move the revenue but we didn't grow properly and that's where scaling platform is a very important element and how do the miss skill. But not just selling more hardware, it's a skill to platform. Integrating our telecommission network, they give mobile, fixed line, internet, enterprise data center, campus network, S1, single network, unified network, and we've networked possibility with data driven and we can fight cyber actors in our network to our capabilities we build in our network platform. And 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 the enterprise segment. And it's very quick to us because cost pressure is real because

[00:25:01] it gets macro outlook itself, memory price going up, storage going up, technology cost especially in in the Western world is rising rapidly. And we got to do a very smart way of managing Eastern technology, make it secure, zero trust, integrate as part of the platform that we built to give a robust infrastructure for enterprise clients, which they truly appreciate. And also, our technology panel appreciate us that the ability for us to look at the intricacy of integrating engineering architecture in building our platforms. And we've been looking at social media. We're getting good awards, not just for Singapore. In fact, Asia Pack, our technology partners is giving us allocates and our ability to execute when they compare us with their overall Asia Pack partners. And it's a very good feedback and recognition and validation from our technology partners and our client appreciate that as well. And with this, that's how we can improve our returns.

[00:26:02] Drive sustainable and recurrent revenue to platform managed services And this platform that is services we offer is repeatable, scalable, and Red for Mile with startup branded managed services as our differentiator in the market. With that, I'd like to check. Thank you, Thio. 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 17 million annualized savings ambition. Whilst still early days, this gives us confidence that the program has moved from planning into execution. And where it's been said before, this is not about technical 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, so we expect savings to build progressively over the next couple of years as execution continues.

[00:27:05] 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 Nick for the closing remarks. Thank you, Jackie. I'll conclude our goals for 2026 are very clear. In consumer, our cornerstones are A, driving monetization and yield with a higher value 5G plus plans, under our Starhub brand to drive our work lift, B, to drive multi-brand, multi-market segmentation across premium, digital, and the no-frills segment with our four brands, Starhub, Giga, MyRepublic, and 8, across mobile and broadband. For maximum cross-sell to maximize our revenue market share where our lead is 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 a fourth operator to work towards a

[00:28:06] 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. And the impetus is on winning order book where we intend to continue the explosive growth rates we have seen with large deals for the largest and most important customers. And underlying this we are focused on building our delivery muscle and raising our revenue to cash flow conversion both organically and selectively inorganic. On cyber, we intend to continue to invest as an apex EII 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 unsigned divestitures to fortify our balance sheet. And last on cost, where we intend to stay very much on track with our targeted 70 million per annum of savings as we exit 26 and hopefully add to this.

[00:29:09] So 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 of the Q&A. So 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 pose your questions, you can unmute yourself and share it. So first up, we have Sachin. Hi Sachin. Hi Nikhil. Firstly, I have Hothani also sitting on the same call because you're on the same Paul and just to quickly, now that we have 24% total about a decline in the first half and the guidance is 20 to 25% what are the

[00:30:12] factors which you know which make it you know which make it safe or you know which make you believe that you know that's something you can maintain is there is it more cost savings is it some new revenue growth you know can you hear some color, what makes you confident to achieve the guidance given the first half performance? I think that's my key question here. Okay, so let me take that to begin with, and then I'll hand off to Jackie and Matt and Kityan, in fact, if you'd like to add. So it's a few things. So first of all, yes, we are reiterating our guidance for the full year. And 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, you know, there are downgrades across the sector and premium continues to shift to the value segment, but we are holding in key segments. But very important, one of the comments which both Matt and emphasize, and I emphasized, which is with our Starhub brand, we are upgrading our customers steadily to our 5G plus plans.

[00:31:14] And when we do so, we are realizing improved metrics, as I said, across higher R-pool, lower churn, et cetera, et cetera. And we see the benefits of that coming through in terms of our monthly recurring revenues from that base. So that I would point you to as a positive offset against the declining trends that we see. And 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. And it's driven off quality and differentiation rather than price, which is why we like it. So that's point number one. Point number two, again, you know, we, just to clarify, we have a one order book this year, but we also have one order book from prior years. So 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.

[00:32:17] So 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. And 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. But I'll pause there, leave it to Jackie to add any comments you would like and then also to Matt and Gio. Yeah, so I think it's actually it will be a combination of revenue growth and cost management, right? So, but I think what we can really control is on the cost side. So we have identified the strategic cost management program. We have been executing. So I think we expect more to come in the second half. But on the top line is like, we are focusing on executing our strategies. I think Matt and Gio can deliver it more, And the price size will be scaling the business,

[00:33:19] like executing the projects, converting like all the book into revenue and all the consumer side small on like just like focusing on value and quality and improve on our food. Okay, just to follow up on that. So 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? Does it mean that actually R2 can be kind of stable from the levels here it is? Just to understand this whole right 5G, is it because of 5G standalone that we are a little bit thinking that R2 can benefit or stabilize? Yeah, Sachin I might chip in. Hello, nice to talk. The startup customers are enjoying the standalone 700 megahertz network. And so that then does provide a distinctly better quality. And we do expect that to contribute to the overall dynamic around the 5G Unlimited Plus

[00:34:23] plans. What we're doing very actively is working into our customer base to offer those better and better plans to our customers and to have them move up through the pricing range. also with Hubbing, we're having them add other services like broadband entertainment, which also improves the total speed from those customers and with it the total margin yield. In addition to that, in the 8th business, as mentioned, we're also offering 5G, but this is not yes, the 5G with 700 megahertz. And so as we go forward, we're expecting to see those customers continuing to adopt 5G. So that's less of a 5G plus story, it's much more of a just 4G to 5G story. But that's also showing good signs of RPU uplift. Sachin, if I could maybe add a comment picking up on two points made both by yourself and Matt. First on 5G SA and second on 700 megahertz, because they really go to strategic differentiation.

[00:35:27] So first on 700 megahertz, you should note that this 700 megahertz rollout that we have, that we are in quite advanced stages of propagating is a unilateral rollout. So 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 by reading in the media is that the shutdown of NSA was mandatory by the June 30th, 2026 deadline. And Singtel, ourselves, and M1 have completed this shutdown.

[00:36:14] And the fourth operator has been granted a temporary extension. As you know, when this temporary extension lapses, they will have to move to 5GSA, but they will have to deploy 5GSA on only two bands of 2.1 gigahertz spectrum. And by the way, those two bands of 2.1 gigahertz spectrum will not be redeployable for 4G. So again, we think, you know, both the 700 megahertz spectrum as well as the move to 5GSA will differentiate us, you know, certainly against the smaller operators by a significant degree. Got it, got it. Okay, I think this was Sandy actually on the mic call. Yeah, hi. Good morning. Just two questions. First is on the competition side. So just trying to understand that since the IMDA press release on the smaller operators network, which have we seen the competitive intensity from their side or their availability in the

[00:37:16] market visibility in the market and 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 is a quite a bit of divergence between a startup and think tells growth so just trying to understand it. This question number one and the second question is on net debt to a beta which is around 2.4 I understand that the startup is looking to acquire or do some small ticket M&A in the enterprise space. And then there is also talks about consolidation. So 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 NSCI, but just trying to understand the overall balance sheet position. Thank you. Yeah, so maybe I can open up with some quick comments and then, you know, maybe pass it

[00:38:18] on to Matt and to Jackie on the net to give it a question. So I would say overall, in terms of the competitive intensity, as far as a fourth operator, we have not seen that abate. However, we should also say it's a little bit as 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 whatever the consequences of the infractions that they had been found guilty of. It's unclear what those consequences are today, but when the consequences come through, you know, 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, there's a very important point that I made on 5GSA, because in an NSA world, there's an ability to pool 4G and 5G spectrum. With 5GSA, you have to clearly segregate your spectrum. in that world, as I mentioned, they only have two bands of 2.1 gigahertz, which goes to both network quality as well as cost and capital for network availability. So again, that's very much

[00:39:24] on the come and something to keep an eye out for. Singtel, I would leave to Matt on the divergence, but I would like to say that we're kind of all in this world where we're sort of evaluating quarter and quarter of differentials which are still negative for everyone and I think we 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 and that's not really good for everyone so hopefully and hopefully not too far away we can be comparing. I was going to say I'll hand over to Matt to add more on those more very valuable points on that But just covering off NetDed to Iveda, 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. And as I said, they're disproportionately positively beneficial because while they don't have any impact on our balance sheet and then on that to Iveda, they really are quite helpful from a delivery standpoint, our ability to scale and our ability

[00:40:25] 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, you know, within the envelope of leverage and our net debt to EBITDA. We can't really talk about that, you know, any more at this point, other than to say, you know, clearly there's a lot of thought around all alternatives sources, uses structure that goes behind, beyond and behind, you know, keeping to the right kind of capital structure on the look. But on the first piece, I'll ask Matt to add. Yeah, I'll have much to add at this point. Obviously, the Singtel results only came out this morning, so we've not had a chance to look at those in detail, but we will. And of course, we will always make sure that we're understanding those and looking for opportunities where they exist. But I do think the theme at the moment is around the sustained price competition, which impacts everybody. So I'll leave it at that.

[00:41:27] Simba, a question was also have you seen that? So 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. But 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 of the transaction between Simba and M1. We've also seen the number three start to become much more active in the market. And then as is typically the case, we've been also seeing the number four start to respond as well. So that's essentially the dynamic. Yep. Yeah, that's good to give it up. So if you look at our 2.4 times leverage ratio right now, it's still significantly below the company level. So we have sufficient headroom at number one. And also if you look at our cash position, we have over 516 million of cash. We expect to monetize the remaining stake in hand side.

[00:42:30] So, and then also we have like unused facilities. So all these like 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. So is it possible to give you an indication in terms of, you know, if that terminology, if it's here, book to bill ratio or something like that, in terms of order book related to the current revenues. Thank you. All right, sure. Thanks for the question, right? So for our many services, as a business model, we are more focusing on recurring revenues, right? Signing trades are five years contract, and that is our focus. And we are very selective in those one-off India revenue SI projects. We only do that because there is longevity with the client

[00:43:31] that went to managed services. So you can see that in this element of the auto-move that we have, three to five years per track, right? So you can see that there will be India conversion for the first year. And we're not looking at DCF. In fact, the Indian revenue that we have, This is actually what we did last year. Last year, if you recall, we also have a strong year in your Audible growth, also multi-year. We delivered some last year and this year is a continuation of delivery, right? So for example, some of the more public known projects like the cell broadcast, the government tested it. So we are deploying now and then we have to get it up ahead of this year. So these are all high value projects that we do to give us our profitability, leveraging on our core assets. And we are seeing that as a continuation to the new order book that we have, this will be the feature. So there will be three elements of it in our order book.

[00:44:33] First is our enterprise connectivity, the probability is on the go. We are actually on the project as well. We are able to deliver our year revenue. We have a lot of sources of revenue, which is on the SI project, lab basis business that we have. And then finally is the platform like managed services projects that we do. So three different kinds of sources of our projects and revenue each has different gross margin and top line profile. So they all blend together for us to deliver our overall sustainable growth and our financial commitment, right? So that we have a balance of portfolio to deliver each of our projects as well. Yeah, sure. Thank you, thank you very much. Thanks so much. 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 with any more questions or you can find the center of management, have a great week ahead. Thanks all. Thank you.