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Singtel posts SGD 541 million net profit in Q1

Financial results News - Published on Fri, 09 Aug 2019

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Singtel reported a net profit of SGD 541 million for the first quarter, down 35% largely due to Airtel’s losses and higher depreciation and amortisation costs in network and spectrum across the Group. Excluding Airtel however, net profit was down 3%. Operating revenue rose 2% in constant currency terms to SGD 4.11 billion on growth in Consumer Australia and the Group’s digital businesses which continued to scale. Excluding exceptional items mainly from Airtel, underlying net profit was down 22%.

Ms Chua Sock Koong, Singtel Group CEO said that “The Airtel impact aside, business is stable as we continued to execute to strategy in the first quarter. We added postpaid mobile customers in Singapore and Australia and grew our digital businesses Amobee and Trustwave. This was achieved against a backdrop of heightened competition, sustained industry headwinds and subdued economic growth. We are focused on the digitalisation of our core communications business where innovations in digital products and services are proving to be key differentiators, leveraging our network superiority. We are also driving productivity gains and cost savings through digitalisation.”

The Group’s regional associates continued to drive customer growth and data usage. However, overall pre-tax earnings contributions fell 14% due to Airtel in India as higher network costs, depreciation and finance charges from its 4G network expansion affected financial performance. This quarter, Airtel India saw improved ARPU which drove growth in its mobile revenue. Excluding Airtel, the regional associates’ contributions would have risen 10% led by Telkomsel in Indonesia which posted an 18% increase in earnings on robust growth in data and digital services. In Thailand, AIS and Intouch’s earnings were mainly impacted by an additional provision for statutory payments under revised labour legislation. In the Philippines, Globe saw strong data revenue growth from its mobile and broadband businesses.

Ms Chua said that “We saw a market recovery in Indonesia and relative price stability return to the Indian market. We are confident that our regional associates will reap the benefits of significant network investments, continued smartphone adoption and demand for digital content, products and services in their markets. We are currently leveraging our collective synergies and strengths to create a regional digital ecosystem that will serve our 700 million customers in the growing areas of payments, gaming and esports.”

The Group has made substantial investments in network and spectrum. In Australia, Optus is rolling out its 5G fixed wireless service which is targeted to reach 1,200 sites by March 2020 while Globe in the Philippines was the first in Southeast Asia to launch 5G fixed wireless broadband services. In Singapore, Singtel is leveraging 5G to develop innovative applications in the advanced manufacturing and maritime industries in partnership with government agencies and enterprises.

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Posted By : TelecomGuru on Fri, 09 Aug 2019
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