SingTel's revenue hit by rising costs in Singapore

2Q14 revenue fell by 6%.

According to CIMB, Singapore’s 2Q14 revenue, excluding device and equipment sales, fell 6% yoy and was flat qoq. EBIT was weighed down qoq by higher content costs related to the Barclays Premier League and depreciation and amortisation costs from its higher capex spending.

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Weaker Optus contributions
Optus’s 2QFY14 revenue weakened another 6% qoq and 15% yoy due to a decline in mobile revenue of 6.1% yoy and a weaker A$.

Overall, its mobile-subscriber base shrank 0.5% pt while ARPU was also down 5%
qoq. The ARPU dilution is due to the take-up of lower-ARPU data plans.

Optus increased its 4G users significantly by nearly 300k in 2Q to 1.38m on improving network utilisation. Strong cost control more than offset its weak revenue and it reported a 10% qoq increase in EBITDA.

Its 1H14 EBITDA was in line with our FY14 forecast. However, a 6% qoq weaker A$ against the S$ diluted these gains.

Currencies sank associate contributions
Associate contributions fell 10% both qoq and yoy. Rp and Rs weakness brought down contributions from Telkomsel and Bharti. In addition, AIS’s performance was affected by a weaker Thai economy.