Singtel reports 2% rise in third-quarter profit, but revenues fall

9 Feb 2017

Southeast Asia’s largest telecoms group by subscribers and revenue, Singapore Telecommunications Limited (Singtel), said net profit for its fiscal third quarter ended 31 December 2016 increased by 2% year-on-year to SGD973 million (USD686.6 million), although revenues declined by a similar percentage over the same period to SGD4.41 billion – a fact it attributed to a regulator-mandated reduction in mobile termination rates (MTRs) in Australia, the home market of Singtel’s wholly owned subsidiary Optus. The MTR cuts resulted in a 10% fall in (consumer) revenue in Australia to AUD1.81 billion (USD1.38 billion), although this was in part offset by growth in its home market, as domestic services revenue increased by 7%. Meanwhile, consolidated sales derived from enterprise businesses flat-lined at SGD1.65 billion, while turnover from cybersecurity spiked 10% to SGD113 million, and group digital life revenue soared 22% to SGD167 million. EBITDA were stable, at SGD1.22 billion, although in constant currency terms, this was down by 2%, it said. The Singtel group’s total mobile customer base across its operations and those of its affiliates across Asia grew another 2% during the quarter to approximately 640 million.

Singtel group CEO Chua Sock Koong commented: ‘This is a resilient set of results. We have managed to hold good ground against the backdrop of a slowing Singapore economy and more challenging business environment all around … While there are concerns of a global economic slowdown, the growth story in the developing markets where we are invested remains compelling as mobile data usage continued to grow across all our mobile associates.’

Singapore, Singtel, Singtel Group, Singtel Optus