Singtel H2 net profit down 20.9% at S$2.2 billion; telco open to Aussie minority partner in Optus

[SINGAPORE] Singtel on Thursday (May 21) posted a net profit of S$2.2 billion for its second half ended Mar 31, down 20.9 per cent from S$2.8 billion in the year-ago period.

The stock fell as much as 3.2 per cent or S$0.16 to S$4.86 as at 9.28 am on Thursday morning following the news, with nearly 7.6 million shares changing hands.

This translated to an earnings per share of S$0.1335, down from S$0.1656 for the second half ended March 2025.

Its earnings for the period were weighed down by, among other things, lower contributions from its joint ventures and associates, as well as higher finance costs. Losses from foreign exchange over the corresponding period also stood at S$4.7 million, down from a gain of S$7.8 million a year ago.

Nevertheless, the group’s underlying net profit for the six months rose 10.6 per cent for H2, to S$1.4 billion from S$1.3 billion previously.

For the second half, revenue stood at S$7.4 billion, up 2.7 per cent on the year from S$7.2 billion.

The board proposed a final ordinary dividend of S$0.103 per share, totalling to S$1.7 billion for the financial year ended Mar 31. This consists of a S$0.07 per share core dividend and a value realisation dividend of S$0.033 per share.

This brings total annual dividend to a record of S$0.185 per share.

With no operations in the Middle East, the group said its direct exposure to the region’s crisis is limited. However, it noted that most of its key markets are net energy importers and “susceptible to global energy price volatility”.

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“While existing long-term power contracts should help mitigate this exposure, there could be second-order implications in the form of inflationary pressure resulting in higher operating costs, softer consumer and business spending and slower economic growth,” said Singtel.

“This will affect the group’s foreign exchange risk stemming from volatility in the regional currencies where it operates, further impacting translated earnings.”

In a separate statement on Thursday, Singtel said it is open to an Australian partner taking a minority stake in Optus.

Miniority shareholders of Singtel, which fully owns Optus, have been concerned over its investment in the beleaguered Australian telco, given the emergency call outage last year which resulted in fatalities.

In a media briefing in November, Singtel group CEO Yuen Kuan Moon noted that it has invested A$9 billion (S$7.7 billion) in capital expenditures at Optus over the past five years.

The counter closed 0.8 per cent or S$0.04 higher at S$5.02 on Wednesday.