Singapore Telecommunications posted a 14% increase in first-quarter underlying profit on Wednesday, driven by strong results from its Australian unit Optus and contributions from regional associates, including India’s Bharti Airtel.
Singtel’s improved performance highlighted price hikes for telecom services in key markets and resilient growth from its regional associates, led by Bharti Airtel, whose post-tax contribution from India and South Asia more than doubled during the quarter.
Post-tax contribution from regional associates, including Bharti Airtel, Indonesia’s Telkomsel, and Thailand’s AIS, grew 24.5% to S$468 million.
As a result, Singtel’s first-quarter underlying net profit rose to S$686 million ($534.77 million) from S$603 million a year earlier, largely in line with the consensus estimate of S$686.9 million, according to Visible Alpha.
“We achieved a strong set of first-quarter results despite ongoing macroeconomic uncertainties and currency fluctuations,” Singtel CEO Yuen Kuan Moon said.
On a statutory basis, Singtel reported a net profit of S$2.88 billion, sharply higher from S$690 million seen last year, bolstered by one-off gains from the sale of a partial stake in Airtel and the Intouch-Gulf Energy merger.
Yuen forecast the telecom operator’s data centre business to be a “bright spot” in the ongoing financial year as its data centres in Thailand and Singapore near completion.
Reuters
