Singtel faces stiff competition on overseas markets

Associate profits were flat.

According to Maybank Kim Eng, Singtel's stable 4Q and full-year results were in line with its forecasts, which already included competition-hit results from Airtel.

Full-year underlying net profit rose 3% YoY to $3.9b and for 4Q17 0.8% YoY to $988m. Excluding Airtel, underlying NP rose 4.5% for the full year and 7% for 4Q17.

"This reflected a strong consumer business in Singapore and Australia, and growth in Telkomsel. Full-year group revenue fell 2.5% mainly because of the cuts in mobile termination rates in Australia; it was stable otherwise," Maybank Kim Eng said.

Here's more from Maybank KimEng:

Group consumer revenue/EBITDA grew 7% YoY/QoQ. Singapore consumer was flat as weak voice revenue offset data growth, but EBITDA margin improved on lower operating costs. Australia did better on a stronger AUD and cost control.

Group enterprise was mixed, with revenue +3% YoY but EBITDA down 2% due to price competition in Australia. Group digital life losses shrank 7.5% YoY. Associate profits were flat due to poorer results from Airtel, Globe and AIS, but Telkomsel’s 17% growth offset the decline.