Singapore's SingTel Financials Hurt by Currency Fluctuations
Published on: 14th Nov 2012
Note -- this news article is more than a year old.
By: Ian Mansfield
Singapore based SingTel has reported its second fiscal quarter revenues were barely changed at S$4.57 billion while net profit was also very slight down at S$868 million.
The company said its performance should be seen in the light of the impact of weaker regional currencies. The results were underpinned by strong operating performance from Singapore and the regional mobile associates.
Revenue from Singapore rose 4 percent to S$1.67 billion, with broad-based growth in key segments and EBITDA increased 2 percent. Against a negative mobile industry growth in Australia, Optus' revenue fell 4 percent to A$2.24 billion, while EBITDA was stable.
Pre-tax earnings from the regional mobile associates grew 17 percent to S$549 million. Telkomsel, AIS and Globe recorded stronger operational performance, partially offset by lower earnings from Airtel and weaker regional currencies. If exchange rates were unchanged from a year ago, earnings from the regional mobile associates would have risen 26 percent.
As at 30 September 2012, the Group had a total mobile customer base of 468 million, an increase of 44.4 million or 11 percent from a year ago.
Ms Chua Sock Koong, SingTel Group CEO, said: "The Group is focused on delivering sustained growth in our core business and developing new revenue streams. In Singapore and Australia, we implemented a more sustainable data pricing structure to fund network investments and meet customer demand for higher speeds and better user experience. We will continue to build on our recent acquisitions to enhance our capabilities and extend our market leadership."