SingTel Group posts stable profits on lower revenues

In the second quarter ended 30 September SingTel group saw stable net profits of SGD 870 million as earnings growth was negatively impacted by the steep appreciation of the Singapore dollar. In constant currency terms, net profit increased 7 percent. However, revenues fell 9 percent to SGD 4.16 billion from SGD 4.57 billion, due mainly to the weaker Australian dollar, a cautious business environment, and lower mobile revenue from Australia. EBITDA rose 3 percent to SGD 1.30 billion on strong cost management. In constant currency terms, EBITDA rose 9 percent. SingTel also said that its combined mobile customer base stood at 486 million, up 7 percent year-on-year. 

Group Consumer, which contributes more than 60 percent to group revenue and EBITDA, delivered EBITDA growth of 4 percent and margin increased to 33.3 percent from 28.1 percent in the second quarter. Revenue was down 12 percent to SGD 2.57 billion. A strong performance from the Singapore consumer business was offset by the weaker Australian dollar and lower mobile revenue from the Australia consumer business.

Group Enterprise EBITDA grew 1 percent on better business mix and strong cost management in the second quarter. Revenue declined 4 percent amid a cautious business environment in Asia Pacific and keen competition. The weaker Australian dollar weighed on its revenue and EBITDA.

Revenues at Group Digital L!fe went up 44 percent mainly from advertising revenue in the second quarter.