Singapore Telecommunications (Singtel) reported net profit stable year-on-year at SGD 944 million in the quarter ended 30 June. In constant currency terms, profit increased by 2 percent in the period. Strong performances by Telkomsel in Indonesia and India's Airtel saw pre-tax contributions from the regional associates grow 14 percent for the quarter to SGD 714 million, Singtel said. Singtel reported revenues for the quarter down 7.1 percent from a year earlier to SGD 3.9 billion.
Singtel said its growth in the second quarter was mainly boosted by mobile data and cyber security services. Cyber security revenues reached SGD 109 million for the quarter. Group EBITDA slightly decreased by 0.4 percent year-on-year to SGD 1.23 billion.
Telkomsel recorded strong growth across its voice, data and digital businesses and data customers now constitute almost half of its mobile customer base. In India, Airtel accelerated its 4G network rollout, also delivering growth in data and voice services. In Thailand, AIS acquired 900MHz spectrum, while Globe in the Philippines has agreed to acquire 50 percent of the telecom assets of San Miguel, including its 700MHz spectrum.
In Australia, EBITDA grew 2 percent. Postpaid handset customers increased 51,000 excluding wholesale deactivations while prepaid handset customers decreased by 24,000 due to a regulated change in customer verification. Mass market fixed revenues rose 4 percent due to an increase in NBN customers and higher pay TV take-up. In Singapore, strong demand for mobile data services offset declines in voice, text and roaming as postpaid customers migrated to higher-tier plans and more than 60 percent of prepaid customers were data users.
Singtel’s Group Enterprise unit saw overall revenues grow 5 percent, while EBITDA rose 1 percent. Group Digital Life’s revenue rose 34 percent.
Singtel Group reaffirmed its outlook issued in May. For the current year, Singtel expects a low single-digit increase in underlying revenue and EBITDA and free cash flow of around SGD 1.5 billion. Capex will increase to SGD 2.8 billion, with SGD 1.0 billion in Singapore and AUD 1.8 billion in Australia. Dividends from associates are expected to slightly increase to SGD 1.1 billion.
