SingTel Delivers Resilient Performance Amid Currency Headwinds
Published on: 15th May 2014
By: Ian Mansfield
Singapore's SingTel has reported a resilient fourth quarter with net profit up 4% year on year to S$898 million even as the Australian dollar and regional currencies weakened significantly against the Singapore dollar.
In constant currency terms, net profit would have grown 13%.
Earnings growth was driven by operating performance from the Singapore Consumer business and the regional mobile associates, led by Airtel. The Group's share of regional mobile associates' pre-tax earnings increased 9% to S$558 million and would have grown 23% on a constant currency basis.
Ms Chua Sock Koong, SingTel Group CEO said, "Our performance held up strongly against industry challenges and currency volatility. During the year, we strengthened our market position and the efficiency of our core business. Our digital initiatives delivered to expectations, giving us the confidence to expand further into this area."
The quarter saw a steep weakening of the Australian Dollar, Indonesian Rupiah and the Indian Rupee by between 11% and 20% against the Singapore Dollar.
Revenue declined 8% but would have fallen 1% in constant currency terms. Singapore Consumer posted strong revenue growth but this growth was offset by lower consumer revenue in Australia and lower revenue from Group Enterprise.
The Group and its regional mobile associates continued to register strong customer growth. As at 31 March 2014, the Group's combined mobile customer base grew 10% to 514 million from a year ago.