Strong Singapore operations keeping SingTel afloat

Telco's local revenue and market share growing.

In a release to SGX, Singapore Telecommunications Limited (SingTel) reported resilient performance across the Group for the second quarter ended 30 September 2012 despite the impact of weaker regional currencies. The results were underpinned by strong operating performance from Singapore and the regional mobile associates.

The Group continued to invest in networks and transformational initiatives while delivering stable earnings and improved cash flows. Excluding exceptional items, underlying net profit was stable at S$886 million, while net profit declined 2 per cent to S$868 million.

Revenue from Singapore rose 4 per cent to S$1.67 billion, with broad-based growth in key segments and EBITDA increased 2 per cent. Against a negative mobile industry growth in Australia, Optus’ revenue fell 4 per cent to A$2.24 billion, while EBITDA was stable, reflecting increased focus on customer experience and yield management.

Pre-tax earnings from the regional mobile associates grew 17 per cent to S$549 million. Telkomsel, AIS and Globe recorded stronger operational performance, partially offset by lower earnings from Airtel and weaker regional currencies. If exchange rates were unchanged from a year ago, earnings from the regional mobile associates would have risen 26 per cent.

The Group and its regional mobile associates continued to register strong customer growth in the quarter. As at 30 September 2012, the Group had a total mobile customer base of 468 million, an increase of 44.4 million or 11 per cent from a year ago.

Depreciation and amortisation charges increased 8 per cent to S$535 million as a result of investments in mobile network and NCS’ equipment for customer contracts, as well as amortisation of intangibles from recent acquisitions.

Ms Chua Sock Koong, SingTel Group CEO, said: “In the second quarter, the Group delivered a resilient set of results. In Singapore, we gained mobile market share. Optus’ focus on customer experience and yield management delivered stable earnings in a challenging market. Our associates, AIS, Telkomsel and Globe, had another quarter of solid performances.”

“The Group is focused on delivering sustained growth in our core business and developing new revenue streams. In Singapore and Australia, we implemented a more sustainable data pricing structure to fund network investments and meet customer demand for higher speeds and better user experience. We will continue to build on our recent acquisitions to enhance our capabilities and extend our market leadership.”