FY 2025 Full-Year Financial Results Webcast Briefing

Good morning, everyone. Thank you for joining Starhouse Foyo 25 results call. I'm Crystal at the Cup investor relations and today this morning we have with us our senior management. That by our chief executive, which you can see if you're Jackie low. Matt Williams chief of consumer. Thank you, young chief of enterprise business group. As usual, Nick you and our senior management will bring us through a quick presentation. Well open before we open the floor to Q&Es. Thank you. Over to you. Okay, thank you everyone. Good morning everyone. Thank you for taking the time to spend with us. As we all know, this is a very interesting time. One of real dynamic flux in the sector, you know, bad and good. So thank you for the listening to how we have been navigating really the past quarter and the past year and how we intend to drive the coming year. Now, all of what we do is with a view to positioning for superior outcomes to the end of this dynamic period,

really 27 and beyond, and to drive long-term total shareholder in time. So just to recap from prior calls, our view of dynamic floods across four areas is as follows. First in consumer. As we all know, there is sector consolidation underway with the fourth operator acquiring the third operator. We have seen significant market down draft, of course, driven by these smaller operators. And this has and will change, and not just because of consolidation. We can talk about that some more in the Q&A. Now on the enterprise side, in Singapore, there is a very material spend environment on the government and large enterprise side of things, driven by smart city, tech refresh, and cloud and AI transformation. There is a much narrower competitive set here than consumer. and we are well positioned to drive returns. Number three, cybersecurity, the issue of the day. We're all hearing about UNC 3886 and it's something that's existential.

So all critical infrastructure providers, all critical infrastructure providers will have to invest, but not all are equally positioned. And last cost and capital spend, all operators have a pressing imperative to reduce cost and pre-app capital. With cloud digitalization and AI, there is the opportunity to do so, but again, not all are equally positioned. So I'd like to take each of these and stay on the same page and align against our current actions and plans if you will permit me. So first on consumer, we really believe startup to some degree sets the tone for the market because we are in the Singapore market, the only operator that really has a really leadership position across each of and all of the premium segment, the digital segment and the value segment. So a category leader across each and all of these segments. Now, as we stated for the past many quarters, our intent is to be aggressive and take market share ahead of and going into the consolidation.

But really over the last quarter and for the coming year, we intend to do this in a very nuanced way. So for instance, in MOBA, we intend to reduce sub erosion at the premium end of the market, to hold at the digital end and to grow at the value end. But to be very clear, we intend to do this not by price-leading strategies, but by growing quality and value differentiation. So improving sub-monetization and hence moving the market up. So I welcome and encourage all of you to take a close look at these important trends both for us and the rest of the market now and going forward over the coming quarters. Now, interestingly, while obviously we were significantly down year on year in mobile, when you actually look on a quarter on quarter basis in Q4, we were actually zero erosion of revenue being flat on our roof and up on subs. So we believe we grew revenue market share. You know, as you know, we had a lead to the number three operator of about 600 basis points before they stopped reporting.

And we now believe that lead is higher. We have also improved monetization and both the premium as well as the value end of the market. So we believe the market is slowly stabilizing and we intend to set the basis for recovery and we intend to do more of this over the coming year. Now for broadband, similarly for Q4, on a quarter on quarter basis, we were also zero erosion and we are holding quite well with our two brands. First of all, Starhub, the premium end and MyRepublic, which is our very successful digital savvy brand focused on geeks and gamers. And overall, of course, in broadband, we are the number one player and our lead holds in a market which is 85% controlled by us and the incumbent. So moving on to enterprise, which is really the second pillar of our strategy and very important. We had growth over the past year. And in fact, if you look at Q4, our year-on-year growth accelerated. Now Kit Yong will break this down, but overall we did this with our modern digital infrastructure model,

which is unique as a platform model among the service providers. So we continue to see strong traction with government and large enterprise regionally, but frankly, very much in Singapore. The spend environment is strong and with our model, we are winning an increasing number of large deals, which we define as over $5 million and over $10 million in what is an increasing order book. So going forward, you will see us continuing to scale our regional enterprise business and investing to do so in three ways. First, we will continue evolving our modern digital infrastructure platform with more tech, more tools, with partners, but really partners embedded, not a reseller SI model. Number two, we will continue to scale our book of business with existing and new customers. And number three, we are growing our all through hiring and rolling up smaller players left by the wayside. So what you see in terms of investment is in a degree reflected in our outlook. Now the third pillar, cybersecurity. So all of you have read about the existential threats

We are facing at a national level as articulated publicly by Minister Shanmogam last year and Minister Josephine just earlier this week. And of course, telcos like in any country are at the apex of this. Now, Starhub is a major telco running critical infrastructure and also serving government and large enterprises. For us, cyber is also existential and we have, and especially this year, we will continue to make significant investments this year in cyber. Now also as a major telco, we believe we are early and the smaller operators will also need to make significant investments. So this will to some degree, break down any cost arbitrage that has been enjoyed in the past. Now in the medium and long-term, these cyber investments which add to the security of our platform make sense. They secure ourselves and they secure the modern digital infrastructure platform we are serving our government and enterprise customers with. And there is strong awareness in the customer universe of the need for this, which translates into further differentiation for us.