- Singtel reported underlying net profit of S$974m, in line with our forecast of S$964m.
- Consumer business in Singapore did well with revenue from mobile and fixed broadband increasing 2.3% and 4.7% yoy respectively. Revenue from mobile business in Australia increased by 3.3% yoy in local currency terms. Optus added 57,000 post-paid subscribers, confounding recent harsh critics that Optus is loosing competitiveness in Australia.
- Earnings contributions from regional mobile associates increased 4.5% yoy to S$684m. Growth was primarily driven by Telkomsel, where contributions increased 21.1% yoy to S$299m.
- The quarter witnessed significant headwinds from volatility in foreign exchange rates. In particular, the Australian Dollar and Indonesian Rupiah depreciated 12.8% and 6% against the Singapore Dollar on a yoy basis. On a constant currency basis, group operating revenue, EBITDA and net profit would have increased 3%, 5% and 3% yoy respectively.
- Singtel maintained interim dividend at 6.8 cents/share, representing payout ratio of 58%.
best regards,
Jonathan Koh, CFA
DID: 65-6590 6620
This transmission has been issued by a member of the UOB Kay Hian Group for the information of the addressee only and should not be reproduced and/or distributed to any other person. Each page attached hereto must be read in conjunction with any disclaimer which forms part of it. Unless otherwise stated, this transmission is neither an offer nor the solicitation of an offer to sell or purchase any investment. Its comments are based on information obtained from sources believed to be reliable but UOB Kay Hian Group makes no representations and accepts no responsibility or liability as to its completeness or accuracy.
