Looks like quite a decent set of result !
Singtel posts resilient results with strong growth in Australia Quarter ended 30 June 2018
Operating revenue stable at S$4.13 billion, up 2% in constant currency terms
Underlying net profit fell 19% to S$733 million due to lower associates’ contributions, higher withholding taxes on dividend receipts and adverse currency movements
Net profit down 7% to S$832 million, down 4% in constant currency terms
Free cash flow up 13% to S$1.47 billion on higher dividends from associates
Singapore, 8 August 2018 – Singtel’s first quarter results were resilient despite keen competition. Australia performed strongly, registering higher customer growth across both the consumer and enterprise segments, while mobile data remained a key growth driver. Operating revenue was up 2% and EBITDA was stable in constant currency terms. Underlying net profit fell 19% due to weaker results from Airtel and Telkomsel, reduced economic interest in NetLink NBN Trust 1 , an increase in withholding taxes from higher dividends and adverse currency movements. Net profit declined 7% to S$832 million and would have been down 4% in constant currency terms.
“This quarter’s results reflect the resilience of our core business against intense competition and increasing business headwinds. The Group continued to record data growth and Optus made gains in both the consumer and enterprise markets, bolstered by our quality networks, differentiated content and comprehensive ICT capabilities. Our overall focus on digitalisation and automation has also improved customer engagement and delivered productivity gains and cost savings,” Ms Chua Sock Koong, Singtel Group CEO, said. “We start the year with 23% of Group revenue from ICT and digital businesses and we expect contributions from these businesses to rise further as we continue to build capabilities in these new growth areas. Our digital marketing arm Amobee recently acquired the assets of Videology, an ad-tech platform provider for advanced TV and video advertising.”
Mobile data continued to grow strongly for the Group’s regional associates. However, in the key markets of India and Indonesia, intense competition faced by Airtel and Telkomsel led to a decline in regional associates’ overall profits. Airtel’s results were also affected by mandated cuts in mobile termination rates in India although Africa saw continued growth momentum. In July, Airtel announced plans to list its African unit, Airtel Africa, and started preparations. In Indonesia, Telkomsel’s earnings were impacted by intense price competition particularly during the mandatory registration of prepaid SIM cards. This exercise has since been completed and the pricing situation has improved towards end June and after the Lebaran national holiday. In the Group’s other two markets, AIS and Globe continued to perform
strongly. AIS registered robust growth from revenue improvement and cost control. Globe also posted strong earnings growth, driven by strong data revenue growth and cost management. Ms Chua said, “While competition remains keen in Indonesia and particularly India, both Telkomsel and Airtel have nonetheless gained market share. We have started to see revenue stabilise on a sequential quarter basis for India. As leading operators in their markets, all our regional associates continue to ride the growth in data and we are positive on their long-term growth potential.
As a Group, we continue to invest in content, networks and spectrum to maintain our lead in customer experience and better engage our more than 730 million customers across 21 countries.” The Group has established a 5G Centre of Excellence in Singapore, and aims to prepare for the communications ecosystem for 5G services as standards are progressively introduced. Singtel will launch Singapore’s first 5G pilot network later this year while Optus and Globe will introduce fixed wireless solutions for homes in early and mid-2019 respectively. To create new forms of digital content for customers across its footprint in the Asia Pacific region, the Group also announced the launch of PVP eSports Championship, a multi-title and regional league which marks its first foray into the fast-growing esports and gaming market. The Group’s cash position remains strong. Free cash flow rose 13% to S$1.47 billion on higher dividends from associates and lower capital expenditure by Optus.
No comments:
Post a Comment