SingTel Profits Fall on One-Off Costs and Currency Effects
Published on: 14th Feb 2013
Note -- this news article is more than a year old.
By: Ian Mansfield
Singapore based SingTel has reported that revenues for its third fiscal quarter fell by 4.8 percent to S$4.6 billion while net profit also fell by 8.3 percent to S$827 million.
The decline in profits was due to exceptional charges of S$67 million, including Optus' ex-gratia payments for the restructuring of its workforce and accelerated depreciation charges related to Globe's network modernisation and IT transformation programs.
Excluding these exceptional charges, underlying net profit fell 2% to S$874 million. EBITDA was stable at S$1.26 billion.
In Singapore, revenue grew 1% to S$1.70 billion driven by contributions from its new digital services and continued strength of its mobile and ICT businesses. Revenue from Mobile Communications increased 3% to S$507 million as SingTel added 63,000 mobile customers in the quarter. This brings its total customer base to 3.76 million, representing a market share of 46.6% at the end of 2012.
In Australia, Optus reported stable results. While operating revenue declined 6% to A$2.28 billion, cost efficiencies lifted EBITDA to A$576 million.
The Group's regional mobile associates, in particular Telkomsel and AIS, recorded robust growth, which were partially offset by lower earnings from Airtel and the weaker regional currencies. Pre-tax earnings grew 1% to S$455 million and would have increased 11% if exchange rates were unchanged from a year ago.
In the quarter, the Group and the regional mobile associates continued to register strong customer growth. As at 31 December 2012, the Group had 473 million mobile customers, an increase of 39.2 million or 9% from a year ago.