Singtel reports nearly flat fiscal 4Q net profit on weak Australian dollar

SingTel outlet in SingaporeSingTel outlet in Singapore

Singtel reported Wednesday its fiscal fourth quarter net profit rose 0.4 percent on-year to S$773 million as results were adversely impacted by the Australian dollar depreciating by 7 percent on-year.

Operating revenue for the quarter ended 31 March rose 1.9 percent on-year to S$4.34 billion, Singtel said in a filing to SGX before the market open.

In constant currency terms, operating revenue would have grown 5.5 percent, driven by increases in equipment sales, NBN migration revenue and digital services, partially offset by lower mobile service and voice, Singtel said.

DBS had forecast underlying net profit of S$717 million for the quarter.

Pretax profit for regional associates fell 20 percent on-year in the fourth quarter to S$389 million on Airtel’s results, which were hit by competition, and on higher depreciation, spectrum amortization and network costs from expanding 4G networks, Singtel said.

“We have executed well to our strategy amid tougher industry, business and economic conditions,” Chua Sock Koong, Singtel group CEO, said in the filing.

“We gained market share in mobile across both Singapore and Australia led by our product innovations, content and services that were well-received by customers. Our digital businesses Amobee and Trustwave continued to deepen their capabilities and to scale,” she added.

Among the regional associates, Indonesia’s Telkomsel returned to revenue growth on-year, India’s Airtel faced intense price competition resulting in a reduced number of operators there and Thailand’s AIS saw its earnings impacted by higher network depreciation and spectrum amortization, the filing said. In the Philippines, Globe posted a “solid quarter,” with both mobile and broadband posting revenue and earnings growth, it said.

“We continue to be optimistic about the growth potential of our associates’ markets, with the rate of data usage growth and the plethora of digital content and services available and carried over the mobile networks,” Chua said.

For the full fiscal year, Singtel reported net profit dropped 43.5 percent on-year to S$3.10 billion on operating revenue of S$17.37 billion, up 0.6 percent on-year.

DBS had forecast full-year net profit of S$2.91 billion on revenue of S$17.32 billion.

Singtel declared a final dividend of 10.7 Singapore cent a share, unchanged from a year earlier, for a total dividend of 17.5 Singapore cents, unchanged on-year.


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