The Singapore telecommunications sector is witnessing significant consolidation, with Simba’s acquisition of M1 and StarHub’s increased stake in MyRepublic (MR) marking pivotal changes. These moves are expected to influence market dynamics, with mobile network operators (MNOs) maintaining aggressive strategies to defend and grow their revenue market share in the short-to-medium term.
Recent developments have seen Singtel maintaining its position as a top pick due to its return on invested capital (ROIC) expansion and capital management upsides. However, the June reporting season highlighted challenges, with Singtel and StarHub experiencing 7% and 11% year-on-year declines in mobile revenues, respectively. This was attributed to intense competition and aggressive SIM pricing, coupled with higher data inclusions and bundled roaming data.
The Simba-M1 merger, announced on 11 August, has been met with optimism regarding market consolidation, though MNOs remain uncertain about the timing of market price repair. StarHub, during its Q2/H1 2025 results call, expressed its intent to protect its interests in the Antina joint venture with M1, citing the acquisition as a material change in ownership.
StarHub’s acquisition of a 49.9% stake in MR on 12 August, following its initial 50.1% stake in September 2021, aims to strengthen its position in the broadband market. Simba’s entry into the broadband sector in 2024 with competitive pricing has intensified market competition.
Post-results, StarHub has revised its FY25 EBITDA growth forecast to an 8-12% year-on-year decline, planning aggressive strategies in the second half of 2025 to maintain its market share. Meanwhile, Singtel’s forecast remains unchanged, focusing on cost optimisation initiatives for long-term positive outcomes.
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