Singtel Q1 profit up 41.3% to S$628m on better performance, ‘exceptional gains’ from Airtel
Yong Hui Ting
SINGAPORE Telecommunications’ (Singtel) net profit for the first quarter ended Jun 30 was up 41.3 per cent to S$628 million from S$445 million last year, said the telco giant in a regulatory filing on Wednesday (Aug 24).
This was mainly due to a better operational performance and “exceptional gains” from India’s Bharti Airtel.
A dilution of the group’s effective shareholding in Australia Tower Network also gave its Q1 net profit a lift, added Singtel .
The group’s Q1 earnings before interest, taxes, depreciation and amortisation (Ebitda) fell 2 per cent to S$977 million from S$997 million, while operating revenue for the quarter slipped 5.6 per cent from S$3.8 billion to S$3.6 billion in Q1 2022.
This was largely due to the absence of Optus’ national broadband network migration revenue and contributions from Amobee. Amobee was classified as a “subsidiary held for sale” in March.
The telco also took a hit from a 4 per cent depreciation of the Australian dollar.
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On an underlying basis, operating revenue and Ebitda would have grown 1.8 per cent and 2.9 per cent respectively, mainly driven by Optus and its Singapore consumer business arms on the back of a roaming rebound from the broader relaxation of Covid-19 restrictions.
“This set of positive results reflects the progress made on our strategic reset designed to strengthen our core, unlock the value of our assets and grow new digital businesses,” said Singtel’s group chief executive officer Yuen Kuan Moon.
He, however, expects the operating environment for the group to remain challenging amid rising inflation and interest rates, as continuing geopolitical tensions further impact global supply chains.
He added: “We will need to stay nimble and contend with these realities should they put further pressure on our costs and bottom lines.”
Singtel’s shares were trading flat at S$2.63 as at 1.04 pm on Wednesday.
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