Underlying net profit fell 19 percent due to weaker results from Airtel and Telkomsel, reduced economic interest in NetLink NBN Trust, an increase in withholding taxes from higher dividends and adverse currency movements, Singtel said. Net profit fell 7 percent to SGD 832 million and would have decreased 4 percent in constant currency terms.
Mobile data continued to grow strongly for the Group’s regional associates. However, in the key markets of India and Indonesia, intense competition faced by Airtel and Telkomsel led to a decline in regional associates’ overall profits. Airtel’s results were also affected by mandated cuts in mobile termination rates in India although Africa saw continued growth momentum. In July, Airtel announced plans to list its African unit, Airtel Africa, and started preparations.
In Indonesia, Telkomsel’s earnings were impacted by intense price competition particularly during the mandatory registration of prepaid SIM cards. In the Group’s other two markets, AIS and Globe continued to perform strongly. AIS registered robust growth from revenue improvement and cost control. Globe also posted strong earnings growth, driven by strong data revenue growth and cost management.
The Group’s free cash flow rose 13 percent to SGD 1.47 billion on higher dividends from associates and lower capital expenditure by Optus.
In Australia, Group Consumer revenue rose 5 percent as strong customer growth and higher equipment sales offset lower NBN migration revenues from the temporary suspension of NBN connections. EBITDA climbed 3 percent and would have been up a strong 7 percent excluding NBN migration revenues, Singtel said. Mobile service revenue increased by 2 percent, with the addition of 60,000 customers across postpaid and prepaid handset, and wireless broadband.
In Singapore, consumer revenue rose 2 perent, while EBITDA was stable excluding the cessation of Premier League sub-licensing revenue. Mobile data remained a growth driver with data roaming revenues offsetting declines in voice roaming. Equipment sales grew 6 percent with higher take-up of premium handsets.
Group Enterprise revenue fell 3 percent on continued declines in the carriage business and the completion of a major infrastructure project in the preceding year. Managed cyber services grew 4 percent, and overall revenue was flat in constant currency terms mainly from pricing erosion in the legacy payment card industry (PCI) compliance business. Overall EBITDA declined 7 percent due to continued investments in capabilities and products.
Group Digital Life’s revenue declined 1 percent in constant currency terms, impacted primarily by the timing of marketing spend by certain Amobee customers.
