Crystal Lim: 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. And this morning, we have with us our senior management led by our Chief Executive, Nikhil Eapen.
Nikhil Oommen Eapen: Hi.
Crystal Lim: Deputy CEO and Chief of Consumer Business, Matt Williams.
Matt Williams: Good morning.
Crystal Lim: CFO, Jacky Lo.
Wei-Jye Lo: Good morning.
Crystal Lim: And Chief of Enterprise Business Group, Tan Kit Yong.
Kit Yong Tan: Hey, good morning.
Crystal Lim: 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.
Nikhil Oommen Eapen: 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 StarHub story. So a lot of what I know we are all collectively focused on is the -- 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. So as we have been doing for the past 4 quarters, I'd like to start by updating you on our progress on where we stand on the 4 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 increased 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+plans under our StarHub brand. So 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. So 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. So the market, as we've been talking about is split between 3 segments: premium, largely us and Singtel, digital, which is Circles, MyRepublic, which are the MVNOs, as well as GOMO and giga, which are the in-house brands. And of course, the value segment, which is fast, large and growing. So Simba, Eight, now, hi!, parts of M1 and M1 Maxx. And 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 3 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 3 brands operating across mobile and broadband, StarHub, Eight, 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 and, in time, even growing our revenue market share. And as you probably know, our lead to the #3 operator has now been extended to about 650 basis points. Third, within consumer, we are driving consolidation as we all know that genie 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 keep 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 folding of redONE. So 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. And 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. 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 note the infractions that they have been found to have committed, which in part, have lent themselves in the past to cost advantage. So 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. So those are the 4 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 in 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, with modern digital infrastructure, which is a platform model, faster to deploy, more scalable, more value for our customers with better margins. So 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 disclosed to you, is our order book, our 1 order book. And 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. And these are multi-year revenues. So 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 in-sourcing, 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 in-sourcing 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. So we will continue investing in cyber resilience and technology overall, and 2026 is an investment year. This drops off in 2027. So all telcos, all critical infrastructure 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. So hence, we are booking a profit of over $250 million for the first half. 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 our transformation to today. 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 the savings target, leveraging the automation and AI increasingly embedded in much that we do. So to round off on this page on the 4 pillars, underlying this are 3 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. 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 hypercompetition 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 hypercompetition and the downward rebasing of ARPU. This was offset a bit when we convert customers to our new 5G+ plans because, there, we increased 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. So 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 2 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 have, 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 Jacky.
Wei-Jye Lo: Thank you, Nikhil. Let me build on Nikhil's remarks by highlighting a few financial points for the first half. The number on this 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 persisted. Against that backdrop, we kept operating expenditures broadly flat year-on-year at $852.3 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 2.4x, 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 $83.6 million, representing 8.6% of total revenue and 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 $0.03 per share for the half year ended June 30, 2026. We also reaffirm 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.
Matt Williams: Good morning, everybody. Nice to speak again this quarter. So 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. So first of all, 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 has put 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. 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 have continued to focus on delivering high-quality experiences for our customers, either in the high-quality StarHub brand or in the value-orientated brand, or in our digital brands of giga and MyRepublic. So in terms of performance, you can see in mobile, we've maintained our strong #2 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 a movement between the different brands. On broadband, we've maintained our #1 market share position and again, be 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. If I turn to the next page, just to give a bit 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 ratchet 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+ 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. 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 a significant reduction in the cost to 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 responding to the aggression. And 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. 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 eight, we've continued to have strong momentum on customers in both mobile and broadband. Both are now scaling very nicely, but also just 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. And that differentiation also extends to new areas like our Card Arena 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, sorry, 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. So overall, a lot of activity, holding our position in the market, but of course, the market remains challenging. With that, I'll pass to Kit Yong.
Kit Yong Tan: Great. Thank you, Matt. Now well, morning, everyone. So let me run through the Enterprise segment. And if you recall, Q1, we didn't establish a year-on-year growth, right, due to timing. And for Q2 itself, we have come back to delivered the projects, and we are starting to have a stronger momentum with -- for even stronger quarter ahead of us. So Q2, we established a strong delivery of our projects. And it really converts our order book into in-year revenue. So for enterprise connectivity, it's flat. And if you look at the carrier and voice, we are lower by 2.6% due to lower domestic and international revenue. And this is a continued trend for our telco business. And in fact, the whole industry for Enterprise connectivity carrier and voice, the decline is negative 4% to 5%. And if you look at our blended, so-called decline, actually, we are doing much better than the market, and we are holding our fort in keeping our clients. And we also established quite a good mobility customer subscriber base as well. So we're taking 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 are in very good shape for enterprise business as we build momentum into our next few quarters and beyond. All right. Next slide. So continuing to building our Enterprise momentum, look at order book, is still whole region that we have, it is still at 49%, near 50% year-on-year growth. And we want to focus on managed services. This is our engine of growth. 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 high order book, how come the revenue increase is not as significant? Because we are looking at multi-year contracts, recurring revenues, and not solely focusing on one-time off between in-year revenue that kind of 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 probably this year. But also, keep in mind the next 2, 3 years, the 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. And this process, looking at what we are doing sustainable growth, is to really continue to defend and acquire share of wallet for our telco business, grow our managed 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 good wins, right, between Singapore and Malaysia, joint projects, cross-border data center and even RTS itself, we are part of the game, and we are competing as one team for the cross-border projects. Now it is 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 grew managed to mute the revenue, but we need to grow profitability. And that's where scaling platform is a very important element. And how do we scale? We scale it to just selling more hardware. 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, and with network possibility, with data-driven, and we can fight cyber actors in our network -- through our capabilities we build in our network, in our 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 critical to us because cost pressure is real because if you look at macro outlook itself, memory price going up, storage going up, technology costs, especially 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 our enterprise clients, which they truly appreciate. And also our technology partner appreciate us, that the ability for us to look at the intricacy of integrating engineering architecture in building our platforms. And we've been -- if you look at our social media, we're getting good awards, not just for Singapore, in fact, Asia Pac. Our technology partners is giving us accolades on our ability to execute when you compare us with the overall Asia Pac partners. And there is a very good feedback and recognition and validation from our technology partners and our clients appreciate that as well. And with this, that's how we can improve our returns, drive sustainable and recurring revenue through platform managed services. And this platform-led services we offer is repeatable, scalable, and [ brand promote ] with StarHub branded managed services as our differentiator in the market. With that, I hand over to Jackie.
Wei-Jye Lo: Thank you, Kit Yon. 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. And we -- as we have 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 time lines. So 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.
Nikhil Oommen Eapen: Thank you, Jackie. And 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-frill segment with our 4 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 #2 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 to 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. 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 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. 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. 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.
Crystal Lim: Thanks, Nikhil. We'll now open the floor to Q&A. [Operator Instructions] So first up, we have Sachin.
Sachin Mittal: Firstly, I have with any also [ fitting ] on the same call because you are on the same call. And just 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 safe or which make you believe that, that's something you can maintain? Is there -- is 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, yes.
Nikhil Oommen Eapen: Okay. So let me take that to begin with, and then I'll hand off to Jacky and Matt and Kit Yon if they'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'd 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 in key segments. But 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. And when we do so, we are realizing improved metrics, as I said, across higher ARPU, 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, we -- just to clarify, we have a 1 order book this year, but we also have 1 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. 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 Jacky to add any comments he would like and then also to Matt and Kit Yon.
Wei-Jye Lo: Yes. So I think, Sanchin, 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 a 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, it's like we are focusing on executing our strategies. I think Matt and Kit Yon can elaborate more, but is -- Enterprise side will be scaling the business, like executing the projects, converting like order book into revenue. And on the consumer side, it's more on just like focusing on value and quality and improve on ARPU.
Sachin Mittal: Okay. Just a follow-up on that. So if you look at the consumer side, now that because of 5G stand-alone -- is that the reason that consumers are moving to 5G? Is that the reason? And does it mean that, actually, ARPU can be kind of stable from the levels here it is? Just to understand this whole, like, right 5G, is it because of 5G stand-alone that we are a little bit thinking that ARPUs can benefit or stabilize?
Matt Williams: Yes. Sachin, I might chip in. Hello, nice to talk. The StarHub customers are enjoying the stand-alone 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+ 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. 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 yet 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 kind of the 5G+ story. It's much more of a just 4G to 5G story, but that's also showing good signs of ARPU uplift.
Nikhil Oommen Eapen: Sachin, if I could maybe add 2 comments -- add a comment picking up on 2 points made both by yourself and Matt, first on 5G SA and second on 700 megahertz because they really go to strategic differentiation. 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 stand-alone 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 shutdown of NSA was mandatory by the June 30, 2026 deadline. And Singtel, ourselves, and M1 have completed this shutdown. And the fourth operator has been granted a temporary extension. As you know, when this temporary extension lapses, they will have to move to 5G SA, but they will have to deploy 5G SA on only 2 bands of 2.1 gigahertz spectrum. And by the way, those 2 bands of 2.1 gigahertz spectrum will not be redeployable for 4G. So again, we think both the 700 megahertz spectrum as well as the move to 5G SA will differentiate us certainly against the smaller operators by a significant degree.
Sachin Mittal: Got it. Got it. Okay. I think this is [ Sandy ] actually on my call here.
Unknown Analyst: Just 2 questions. So first is on the competition side. So just trying to understand that since the IMDA press release on the smaller operators network be, have we seen the competitive intensity from their side or their availability in the market, visibility in the market? And at the same time, are we seeing the intensity from these 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 Starhub and Singtel's growth. So just trying to understand that. That's question number one. And the second question is on net debt to EBITDA, which is around 2.4x. 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. 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 Ensign, but just trying to understand the overall balance sheet position.
Nikhil Oommen Eapen: Yes. So maybe I can open up with some quick comments and then maybe pass it on to Matt and to Jacky on the net debt-to-EBITDA 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 the 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 have been found guilty of. It's unclear what those consequences are today. But when those 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 there's a 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. And in that world, as I mentioned, they only have 2 bands of 2.1 gigahertz, which goes to both network quality as well as cost and capital to -- for network availability. So again, that's very much on the come and something to keep an eye out for. Singtel, I will leave to Matt on 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. And 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. And that's not really good for everyone. So 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. But 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. And as I said, they're disproportionately positively beneficial because while they don't have any impact on our balance sheet and our debt to EBITDA, they really are quite helpful. from a delivery standpoint, our ability to scale and our ability to improve our margins through in-sourcing. 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 anymore at this point other than to say, clearly, there's a lot of thought around all alternatives sources, uses, structure that goes behind -- beyond and behind keeping to the right kind of capital structure envelope. But on the first piece, I'll ask Matt to add.
Matt Williams: Yes, to be honest, I don't have much to add at this point. Obviously, Sandy, 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. And SIMBA?
Nikhil Oommen Eapen: SIMBA, the question was also have you seen that?
Matt Williams: 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 incumbents after 2 or 3 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 # 3 start to become much more active in the market. And then, as is typically the case, we've been also seen the # 4 start to respond as well. So that's essentially the dynamic.
Wei-Jye Lo: Yes. On the net debt to EBITDA. So if you look at our 2.4x leverage ratio right now, it's still significantly below the covenant level. So we have sufficient headroom. That's number one. And also, if you look at our cash position, we have over $560 million of cash. We expect to monetize the remaining stake in Ensign. So -- and then also, we have like unused facilities. So all these like -- we are in a very good position in terms of liquidity.
Unknown Analyst: Understood. 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 if that terminology it's here book-to-bill ratio or something like that in terms of order book related to the current revenues?
Kit Yong Tan: Right. Thanks for the question, right? So for our managed services, as a business model, we are more focusing on recurring revenues, right, signing 3 to 5 years contract. And that is our core focus. And 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 then to move to managed services. So you can see that in this element of the order book that we have, 3 to 5 years contract, right? So you can see that there will be in-year conversion for the first year. And we're not 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? 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 -- and we have to get it up by end 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 future. So there will be 3 elements of it in our order book. First is our enterprise connectivity probability is on the growth. We have good order for that as well that will deliver our year revenue. We have another sources of revenue, which is on the SI project-led basis business that we have. And then finally is the platform-led managed services projects that we do. So 3 different kind 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 balanced portfolio to deliver each of our projects that we have.
Crystal Lim: And so 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 with any more questions or if you'd like to touch our management. Have a great week ahead.
Matt Williams: Thanks, all.
Nikhil Oommen Eapen: Thank you.
Wei-Jye Lo: Thank you.