Singtel net profit falls 55% as prior exceptional gains lapse
Underlying earnings increased 10 per cent, while the group lifted its full-year operating earnings outlook and raised its interim dividend.
Singtel’s September-ended first half produced net earnings of S$1.54 billion, a 55 per cent fall from the year-earlier S$3.4 billion, the group reported on Nov 13. The decline largely reflected exceptional gains that were not repeated.
The earlier period included net exceptional gains worth S$2.21 billion, stemming from the Intouch-Gulf Energy merger and the sale of part of Singtel’s Airtel holding. Stripping out exceptional items, profit reached S$1.49 billion, an increase of 10 per cent from S$1.35 billion.
Singtel credited stronger results from Optus, NCS and Digital InfraCo, along with larger contributions by regional associates AIS and Airtel, for the underlying improvement. Revenue from operations increased to S$7.29 billion from S$6.91 billion, representing growth of 6 per cent.
With exchange rates held constant, Singtel said the revenue increase would have been 1.4 per cent and underlying profit growth would have been 16 per cent.
Shareholders will receive a board-approved interim payout of S$0.09 per share, up 10 per cent against S$0.082 a year earlier. The payout combines a S$0.071 core dividend with a S$0.019 value realisation dividend.
For the full year, Singtel increased its operating company Ebit growth guidance from mid-single digits to a range between mid and high single digits. Group chief executive Yuen Kuan Moon pointed to double-digit Ebit increases at Optus, NCS and Digital InfraCo, together with strong regional associate contributions.
