Channel NewsAsia

SingTel Q1 net profit down 17% on-year

Net profit for the quarter was dragged down by one-off items and adverse currency movements, the telco said.

SINGAPORE: Local telco Singapore Telecommunications (SingTel) said on Thursday (Aug 14) its net profit for the first quarter fell 17 per cent from a year ago to S$835 million, dragged down by one-off items and adverse currency movements.

Its net profit for the same quarter last year was S$1.01 billion, but included an exceptional gain of S$150 million from the dilution of its stake in Airtel. The latest quarter's results also included one-off losses of staff restructuring costs of S$27 million and a S$17 million share of Airtel’s exceptional loss for various disputes and provisions.

Underlying net profit for the first quarter dipped 2 per cent from last year to S$881 million, lagging analysts’ estimates. According to a Reuters poll of four brokerages, analysts on average were expecting a net profit of S$916 million, excluding one-time items.

Revenue for the period fell 3 per cent to S$4.15 billion.

SingTel and its regional mobile associates – Airtel and Globe – continued to register strong customer growth in the quarter, the telco said. As of Jun 30, the combined mobile customer base grew 10 per cent from a year ago to 525 million.

SingTel’s regional mobile associates delivered a “solid performance”, said SingTel CEO Chua Sock Koong. “Their markets are experiencing strong growth, spurred by improvements in 3G networks, handsets and content. We are collaborating with our associates to accelerate investments in networks, and launch new data and digital services,” she said.