In the second quarter ended 30 September Singapore Telecommunications (SingTel) group saw its net profit increase by 19 percent to SGD 1.04 billion, despite adverse currency movements. In constant currency terms, net profit would have jumped 22 percent, the company said. Revenue increased by 4 percent to SGD 4.31 billion from strong performances in ICT services, mobile data growth and equipment sales in Singapore and Australia, and higher digital marketing revenue. EBITDA climbed 3 percent to SGD 1.33 billion.
Group Consumer revenue grew 4 percent and EBITDA was up 5 percent on higher fibre broadband and TV revenues. Consumer home revenue and household ARPU both increased 11 percent. In mobile services, the newly launched Combo Plans in Singapore attracted over 75,000 customers in the consumer and enterprise segments as at end September 2014.
Australia Consumer revenue grew 2 percent and outgoing mobile service revenue also increased 2 percent. Optus recorded a 60,000 increase in mobile handset customers in the consumer segment and 5,000 increase in the enterprise segment. EBITDA was stable and would have grown 4 percent, excluding a provision write-back in the same quarter last year.
Group Enterprise revenue for the quarter rose 3 percent, boosted by higher ICT revenue on managed services contracts in Singapore and Australia. EBITDA climbed 8 percent driven by growth in ICT and mobile services as well as the benefit of a write-back related to fibre rollout costs. Group Digital L!fe revenue jumped 142 percent with first time contributions from Adconion and Kontera.
For the current financial year ending 31 March 2015, SingTel affirmed the guidance previously issued in May this year, whereby consolidated revenue and EBITDA of the Group, excluding acquisitions, will be stable. Operating revenue for Group Digital L!fe for the current financial year is expected to exceed SGD 300 million, of which approximately 75 percent will be from digital marketing services. Group Digital L!fe’s negative EBITDA will increase to approximately SGD 200-250 million with the impact of the strategic acquisitions and new business initiatives.
