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Singapore Telecommunications Reports Strong Profit Growth

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Singapore Telecommunications (Singtel) has announced a significant rise in net profit for the first six months of the year, driven primarily by a one-off gain from its Indonesia associate, Telkomsel. The telecom operator reported a net profit of SGD 2.14 billion (USD 1.58 billion), representing an 83% increase compared to the same period last year.

Singtel attributed its strong performance to a SGD 1.21 billion one-off gain resulting from a reduction in its effective equity interest in Telkomsel. The company also revealed plans to increase its dividend payout ratio by 10 percentage points, aiming for a range of 70%-90% of its underlying net profit.

However, Singtel reported a 3.0% decline in revenue to SGD 7.03 billion, impacted by the depreciation of the Australian dollar and lower contributions from its Singapore business. Amid weak sentiment and reduced spending on information and communications technology, Singtel’s Singapore operations faced challenges.

Singtel expects capital expenditure for the fiscal year to total around SGD 2.1 billion, with a significant portion allocated to its Australian business. The company also anticipates continued currency headwinds due to the strength of the Singapore dollar relative to the Australian and regional currencies.

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