Singtel's FY profit jumps 41% to SGD 5.4 bln

Thursday 17 May 2018 | 08:56 CET | News
Singapore operator Singtel ended the financial year with a net profit of SGD 5.45 billion, which represents an increase of 41.5 percent year-on-year. Revenue growth was mainly boosted by gains from the divestment of NetLink Trust and a strong performance by its core business, Singtel said. Operating revenue for the full year was up 5 percent to SGD 17.53 billion while EBITDA rose 2 percent, reflecting higher mobile and fixed broadband customer numbers in Australia and contributions from the Group’s digital businesses.

Underlying net profit for the full year fell 8 percent due to a lower share of profits from Airtel and lower economic interest in NetLink Trust, as well as higher depreciation and amortisation on network and spectrum investments. For the fourth quarter, net profit declined 19 percent due mainly to weaker results from Airtel and Telkomsel and adverse currency movements. Free cash flow for the full year rose 18 percent to SGD 3.61 billion, and for the quarter grew 5 percent to SGD 800 million.

For the Group Consumer unit, in Australia, Optus added a total of 384,000 new mobile customers in the 12 months ended 31 March 2018, and 225,000 new NBN broadband customers. Revenue grew 3 percent in the fourth quarter, while EBITDA declined 5 percent. Excluding NBN migration revenues, revenue would have grown 6 percent and EBITDA increased 3 percent. Mobile service revenue grew 1 percent, impacted by higher service credits. Postpaid ARPU was affected by an increased mix of SIM-only plans, higher device repayment credits and data price competition. Mass market fixed revenues excluding NBN migration revenues increased 6 percent. In Singapore, for the quarter, consumer revenue was down 4 percent and EBITDA declined 14 percent. 

Group Enterprise revenue was stable for the quarter as growth in ICT revenues offset the continued erosion of the carriage business the operator said. Cyber security revenue rose 16 percet on the back of strong growth in managed security services and momentum in the Asia Pacific region.

In Australia, Optus Business revenue  grew 5 percent in the quarter ended 31 March 2018, driven by sustained growth in mobile revenue and major ICT contract wins. EBITDA for the quarter was down 5 percent. For the financial year, the growth engines of cyber security, cloud services and smart city projects contributed SGD 1.1 billion in revenue, an increase of 15 percent over the previous year. 

Group Digital Life revenue jumped 54 percent for the quarter with EBITDA at breakeven.

The Singtel board is recommending a final ordinary dividend per share of 10.7 cents, bringing the total ordinary dividend per share for the year to 17.5 cents, representing a payout of approximately SGD 2.86 billion. The Group expects to maintain its ordinary dividends of 17.5 cents per share for the next two financial years and thereafter, will revert to the payout of between 60 percent and 75 percent of underlying net profit.

For the financial year ending 31 March 2019, the Group expects its consolidated revenue to grow by low single digit and EBITDA is expected to be stable. Cash capital expenditure and accrued capital expenditure are expected to approximate SGD 2.2 billion, comprising AUD1.4 billion for Optus and SGD 0.8 billion for the rest of Singtel Group. Free cash flow, excluding spectrum payments and dividends from associates, is projected to be around SGD 1.9 billion. Dividends from the regional associates are expected to be SGD 1.4 billion.

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Categories: General
Companies: Airtel / Optus / SingTel / Telkomsel
Countries: Asia / Singapore
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