Why SingTel shouldn't be too happy with 7% profits gain

Single-digit drop in earnings feared.

According to OCBC Investment Research, SingTel's reported net profit though climbed 7.0% YoY and 16.4% QoQ to S$1011.0m, boosted by stronger EBITDA margins and higher associate contributions.

Here's more:

But going forward, the group’s outlook remains somewhat muted, citing the continued weakness in the AUD. SingTel now expects revenue from Group Consumer to decline by high single-digit level, with lower revenues from Optus, and EBITDA to decline by low single-digit level (versus single-digit growth previously).

Still, it expects Mobile Communications revenue from Singapore to grow by low single-digit level; Australia’s mobile service revenue to decline by mid single-digit level. Group Enterprise revenue should remain stable; but EBITDA to see low single-digit decline (versus stable previously).

Its Group Digital Life revenue should grow at least 50% on an organic basis; but it will continue to see startup losses. Capex will also increase to S$2.5b to support LTE coverage expansion; invest up to S$2b for digital business over the next three years.

Also Read

Singapore emerges as world’s 2nd most expensive data centre market

SIAS urges NeraTel shareholders to reject Ennoconn Corp's mandatory offer

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit