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SINGAPORE: Singapore Telecommunications (SingTel) has issued a profit warning ahead of the release of its second-quarter earnings on November 12.
The telco expects the stronger Singdollar to result in foreign exchange losses or lower contributions from its significant overseas operations.
SingTel said the launch of the iPhone 3G will also hurt its earnings in the fiscal second quarter ended September.
SingTel owns several mobile phone operators across the region, and it says over 170,000 iPhone packages were sold during the quarter.
"Higher subsidy costs are associated with iPhone 3G. Consequently, the successful iPhone 3G initiative will have a dilutive impact on earnings and margins in the near term," the company said.
In Singapore, this will reduce earnings by some S$27 million. In Australia, the drop in earnings will be about A$44 million.
- CNA/ir
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