SingTel Group Q4 profit tumbles on Warid Pakistan sale

Net profit for SingTel Group fell 33 percent to SGD 868 million in the fourth quarter ended 31 March, due to a one-time loss of SGD 225 million from the divestment of Warid Pakistan. In the same period a year ago, the group recorded an exceptional tax credit of SGD 270 million and net profit totalled SGD 1.29 billion. Excluding exceptional items, underlying net profit declined 2 percent to SGD 1 billion due to foreign currency movements and investments in network, spectrum, and digital initiatives. 

Revenues were down 6 percent to SGD 4.48 billion but EBITDA was stable at SGD 1.43 billion, reflecting strong cost management. The revenue decline was due to lower revenues in Australia. The regional mobile associates posted a 1 percent increase in pre-tax ordinary earnings to SGD 514 million, led by strong performances by Telkomsel and AIS. 

The group ended March with 468 million customers (excluding Warid), up 9 percent. This fiscal year, SingTel expects group revenues to be stable while EBITDA is forecast to grow by low single digit levels. Capex will go up to SGD 2.5 billion, to support the expansion of LTE coverage and 3G network enhancements.

SingTel also announced it would allocate up to SGD 2 billion over the next three years to pursue strategic acquisitions in the digital space to drive growth. The Group will review investment opportunities, including increasing its stakes in the existing associates and investing in large under-penetrated telecoms markets. The move is part of SingTel's transformation strategy, which consists of four elements.

First, raising business performance of the core business. Second, lifting customer experience with simplified and compelling value propositions, supported by extensive and strong networks. Third, leveraging the Group’s asset to drive scale benefits. Fourth, creating innovative and differentiated digital services to enhance the core business and deliver new revenue streams.