Singtel reports fiscal year net profit more than tripled

Singtel store in Raffles City Mall in Singapore; taken August 2018.Singtel store in Raffles City Mall in Singapore; taken August 2018.

Singtel reported Friday its net profit for the fiscal year jumped 252 percent on-year to S$1.95 billion on the divestment of its 70 percent stake in Australia Tower Network, compared with an exceptional loss in the previous year.

Underlying net profit, or net profit excluding exceptional items, for the 12 months ended 31 March rose 11 percent on-year to S$1.92 billion, mainly on Airtel’s turnaround, the telco said in a filing to SGX.

Group revenue for the fiscal year slipped 2 percent on-year to S$15.34 billion, on lower NBN migration revenue, the continued impact of the Covid-19 pandemic and challenges in the carriage business, the telco said. Excluding the NBN migration revenue and the Singapore government’s Jobs Support Scheme (JSS) credits, operating revenue was stable, the telco said.

“This improved set of results underscores the group’s resilience in spite of the pandemic’s challenges and the uncertain macro environment. Our mobile business in Australia and our regional associate Airtel capped the year with solid performances to deliver good results,” Yuen Kuan Moon, group CEO, said in the statement.

“Roaming revenues are showing early signs of recovery with the return of business and leisure travel, and NCS experienced strong demand from the accelerated push by government and enterprises to digitalise. We expect this momentum to continue into the new financial year,” Yuen said.

For the regional associates, pre-tax profit contribution for the year rose 21 percent on-year to S$2.07 billion, Singtel said.

Airtel posted double-digit increases in operating revenue and in earnings before interest, taxes, depreciation and amortisation (ebitda) on a recovery in India and growth in the African operations, Singtel said.

In addition to the impact from Covid-related movement restrictions, Globe’s performance was impacted by Typhoon Odette in the Philippines and increased depreciation and finance charges, while AIS had higher depreciation and amortisation charges from network and spectrum investments, Singtel said.

Singtel proposed a final dividend of 4.8 Singapore cents a share, which combined with the 4.5 Singapore cents a share interim dividend, brought the full year payout to 9.3 Singapore cents a share. In the previous year, Singtel paid a final dividend of 2.4 Singapore cents a share, for a full-year total of 7.5 Singapore cents a share.

Read more details of Singtel’s results.