Singtel Reports 1.7% Fall in 3Q Earnings to $953.5 Million

Singapore Telecommunications reported 3Q earnings inched down 1.7% to $953.5 million versus $969.8 million last year.

However, in constant currency terms, net profit would have increased 6% if adjusted for a one-off tax credit last year and the impact from Trustwave acquired in September.

For the three months to December, operating revenue came in slightly higher at $4.47 billion versus $4.43 billion a year ago.

SingTel says the consumer business in both Singapore and Australia delivered strong EBITDA growth during the quarter.

In Singapore, mobile data growth remained strong as post-paid customers traded up to higher-tier plans with 26% exceeding their data bundles while more than half of prepaid customers tapped mobile data services.

The launch of data-centric SIM-Only plans in Singapore saw strong take-up, with new customers making up more than two-thirds of the new sign-ups.

However, declines in roaming and IDD services and softer handset sales saw Singapore revenue drop 4% overall.

In Australia, Optus consumer revenue grew 6% on continued growth in mobile and fixed as well as strong handset sales. EBITDA grew 5%.

The Digital Life group also recorded strong revenue growth driven mainly by Amobee’s social, video and mobile advertising business which acquired marquee clients like Microsoft, Lexus and Fiat.

The group’s EBITDA also improved 18% with Amobee’s better performance and savings from discontinued businesses.

SingTel has guided consolidated revenue of group to grow at mid single-digit level and EBITDA to grow at low single-digit level for the current fiscal year ending March.

Shares of SingTel closed 1.13% higher at $3.58 on Friday.

This article first appeared in The Edge Singapore Market Report.

Didn’t make it to the latest Singtel AGM? Read more to find out what was revealed there: 10 Quick Things I Learned from Singtel’s AGM 2015

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