Singapore Telecommunications (Singtel) has published its financial results for the quarter ended 30 June 2017 (Q1 of its fiscal year), highlighting that operating revenue increased by 8.3% year-on-year to SGD4.232 billion (USD3.1 billion) from SGD3.908 billion and EBITDA increased by 2.7% to SGD1.269 billion from SGD1.236 billion in the corresponding year-earlier period. Net profit, however, slumped 5.6% to SGD892 million from SGD944 million as a result of a significantly lower contribution from Singtel’s Indian associate Bharti Airtel, coupled with charges relating to a workforce restructuring at Australian subsidiary Optus. Airtel’s pre-tax profit contribution plunged 42% y-o-y in the wake of a price war triggered by newcomer Reliance Jio. Notwithstanding the competition, Airtel strengthened its revenue market share leadership in India, the company said. Excluding Bharti Airtel, Singtel said net income would have come in at SGD856 million – up 3.4% on a sequential basis.
The Singtel Group is organised by three business segments, Group Consumer, Group Enterprise and Group Digital Life. On a segmental basis, Group Consumer – which comprises the consumer businesses across Singapore and Australia, as well as Singtel’s associates including AIS and Intouch in Thailand, Airtel in South Asia/Africa, Globe in the Philippines, and Telkomsel in Indonesia – posted revenues of SGD2.361 billion (3.9%) and EBIT of SGD437 million (1.1%), EBITDA of SGD484 million (down 1.2%) and EBIT at SGD329 million (down 0.3%). Meanwhile, Group Digital Life – Singtel’s unit that focuses on developing new internet technologies and assets of the Group operating companies to develop new revenue and growth engines by entering adjacent businesses – generated revenues of SGD273 million (+108.8%), EBITDA loss (LBITDA) of SGD24 million, and EBIT loss (LBIT) of SGD46 million.
The Group had an aggregate total of 654.766 million mobile subscribers at 30 June 2017, up from 613.457 at the same date in 2016, of which 4.128 million were in its home market and 9.765 million were registered with Optus in Australia. Airtel controlled a total of 362.676 million subscribers, including 280.647 million (India), 80.039 million (Africa) and 1.990 million (Sri Lanka), with other regional associates contributing subscriber totals of 178.001 million (Telkomsel, Indonesia), 40.474 million (AIS, Thailand) and 59.722 million (Globe, Philippines), respectively. On a proportionate share basis, Singtel Group had a total of 249.448 million mobile subscribers at the end of the quarter, compared to 219.278 million at 30 June 2016.