SingTel - Chart wise, it is rather weak and may likely continue to trend lower.
The current price of $3.34 is staying below its 20,50,100 & 200 days moving average. This is rather bearish.
Short term wise, I think it may likely move down to retest the recent low of 3.30.
Breaking down of 3.30 with high volume that would be super bearish and may likely see it slide further down towards 3.19 with extension to 3.08.
Not a call to buy or sell.
Please do your own due diligence.
18 May 2018 - long time didn't see company buying back share ! Looks positive!
Today saw the company bought back 294000+ share between $3.42 to $3.43.
http://infopub.sgx.com/Apps?A=COW_CorpAnnouncement_Content&B=AnnouncementToday&F=H1UR0B3BPABL4KB0&H=b2e5d5b80b08f4cc5d2922ce03a9263e1a932c75229c687d33fd403eb23c2132
Singtel posts record full-year earnings on NetLink Trust
divestment and strong core business
Financial year ended 31 March 2018
Record net profit of S$5.45 billion, including divestment gains from NetLink Trust
Operating revenue up 5% to S$17.53 billion
Strong core and digital businesses drive growth
Free cash flow up 18% to S$3.61 billion on strong operating cash flow
Q4 revenue stable and net profit down 19% on weaker associates’ earnings
Proposed final dividend per share of 10.7 cents; total dividend per share of 17.5 cents
DIVIDENDS
The Board is recommending a
final ordinary dividend per share of 10.7 cents, bringing the
total ordinary dividend per share for the year to 17.5 cents, representing a payout of
approximately S$2.86 billion.
Barring unforeseen circumstances, the Group expects to maintain its ordinary dividends of
17.5 cents per share for the next two financial years and thereafter, will revert to the payout of
between 60% and 75% of underlying net profit.
“These results reflect the strong execution of our digital transformation strategy in both our
core and new digital businesses. Optus gained market share in Australia underscoring its
network and content strategy while our ICT and digital businesses now account for 24% of
revenue, with digital marketing arm Amobee achieving growth and positive EBITDA for the
year,” said Ms Chua Sock Koong, Singtel Group CEO. “We remain focused on what is
important to both our consumer and enterprise customers – premium mobile networks, secure
high-speed connectivity, innovative products and services, and excellent customer service.
Besides strengthening our competitiveness, this allows us to deliver even greater value to
customers.”
Across the region, all of the Group’s regional associates continued to drive growth in data.
However, Airtel’s results were impacted by intense competition with very aggressive pricing
led by a new player and further aggravated by mandated cuts in mobile termination rates in
India. This is despite recording its highest quarterly net customer adds and strong data usage
growth in India, and continued positive growth momentum in Africa. Last month, Airtel
announced the merger of Indus Towers and Bharti Infratel to create the largest tower company
in the world outside of China, subject to regulatory and shareholder approvals. Telkomsel’s
earnings were impacted by the decline in legacy services and heightened price competition
particularly during the SIM card registration implementation. Profit contributions from AIS grew
on revenue improvement and cost management. Globe also delivered strong earnings growth
due to robust data revenue growth and cost control.
Competition remains intense in India but the right regulatory policies and sector consolidation
should lead to a more stable market structure in the mid term. In Indonesia, Telkomsel
Singapore Telecommunications Limited 2 of 8
Company registration number: 199201624D
continues to expand its network to create significant capacity and grow its digital business.
To
forge new areas of growth, we are accelerating collaborations with our regional associates to
build an ecosystem of digital services by leveraging the Group’s strengths and customer base
across 21 countries.”
Recently announced initiatives include a cross-border payments service to connect the
Group’s telco wallets in Asia, and strategic partnerships in the areas of e-payments, e-sports
and sports content.
The Group’s cash position remains strong.
Free cash flow for the full year rose 18% to S$3.61
billion, and for the quarter grew 5% to S$800 million.
GROUP CONSUMER
In Australia, Optus gained market share as it successfully differentiated itself through its
network and content strategy. For the full year, it added a total of 384,000 new mobile
customers and 225,000 new NBN broadband customers.
Revenue grew 3% in the quarter as
higher equipment sales and strong customer growth offset lower NBN migration revenues due
to NBN’s temporary suspension order while EBITDA declined 5%. Excluding NBN migration
revenues, revenue would have grown 6% and EBITDA increased 3%. Mobile service revenue
grew 1%, impacted by higher service credits. Postpaid ARPU was affected by an increased
mix of SIM-only plans, higher device repayment credits and data price competition. Mass
market fixed revenues excluding NBN migration revenues increased 6%.
In Singapore, for the quarter, consumer revenue was down 4% and EBITDA declined 14%.
Mobile communications revenue was impacted by voice to data substitution, declines in
roaming services and a higher mix of SIM-only plans.
The launch of premium handsets
presented an opportunity to increase customer recontracting numbers, strengthen customer
relationships and reduce churn. Around 18% of new and recontracting postpaid customers
signed up for SIM-only plans during the quarter.
Home revenues declined with the cessation of Premier League sublicensing and lower fixed
voice usage but was partially mitigated by continued growth in broadband services.
Singtel relaunched its flagship store at Comcentre with state-of-the-art features and integration
of online-offline channels to give customers greater ease of use.
In the content space, Group Consumer scored broadcasting rights for all the 2018 FIFA World
Cup matches in Singapore and Australia. Optus also secured exclusive Premier League rights
for three more seasons, solidifying its position as a leading multi-media entertainment
company.
GROUP ENTERPRISE
Group Enterprise revenue was stable for the quarter as growth in ICT revenues offset the
continued erosion of the carriage business. ICT services was boosted by strong contributions
from cyber security and cloud services.
Cyber security revenue rose 16% on the back of strong
growth in managed security services and momentum in the Asia Pacific region.
In Australia, Optus Business maintained its revenue momentum at 5% growth this quarter,
driven by sustained growth in mobile revenue and major ICT contract wins.
GROUP DIGITAL LIFE
Group Digital Life continued to scale and make progress towards profitability. Revenue grew
54%1
for the quarter with EBITDA at breakeven, lifted by one-off content cost credit and
government grants.
In my opinion, SingTel has again shown it ability to grow its business and total revenue for the Full Year rises 4.9% to 17,532m.
Underlying Net profit is down 7.8% ( excluding divestment gains) was 3,544m.
Underlying Net profit if included divestment gain of 1,908m , Up 42.2% to 5,451m.
What an outstanding result.
Not a call to buy or sell.
Please do your own due diligence.
