Singtel announced plans to take over SGD 2 billion in one-time charges in its annual results in order to write down the value of assets. The impairments cover its subsidiary Amobee, the cybersecurity business and Australian carrier Optus.
The value of mobile advertising platform Amobee will be written down by USD 438 million (SGD 589 million), while the carrying value of the cybersecurity business is cut by USD 250 million. Their remaining values are respectively USD 380 million and USD 517 million.
Given the fall in value, Singtel is looking at strategic options for both the above businesses. These may include, among others, restructuring of product or business segments, a full or partial divestment or business combinations with other industry players.
Optus meanwhile is taking an asset impairment charge of AUD 197 million (SGD 204 million). This follows a review of network assets as Australia's National Broadband Network (NBN) rollout nears completion and certain legacy fixed assets are phased out.
Consistent with other major corporations in Australia, Optus also is undertaking a programme to review
its staff compensation and will record an exceptional charge of AUD 98 million in the second half of the fiscal year to March. This programme includes staff payroll adjustments, professional fees as well as remediation of Optus’ systems and processes.
The exceptional losses will be partially offset by exceptional gains, including an estimated gain of SGD 98 million arising from the dilution in Singtel’s shareholding in Bharti Airtel from 31.9 to 31.7 percent after shares were issued by Airtel as partial consideration for the acquisition of Bharti Telemedia in March.
The company will release the annual results on 27 May.
