SingTel net profit shoots up 5.3% to $1.97b in H1

Majority of prepaid costumers consumed data services.

According to a report by OCBC, SingTel’s H1 net profit inched up to $1.97b from 1H14’s $1.92b, reflecting a 24.3% YoY growth. Similarly, core earnings inched up 0.5% from $1.86b to $1.87b.

In Singapore, more than half of SingTel consumers in the prepaid segment consumed data services.

"Overall, revenues in Singapore were stable as growth in mobile and consumer home services offset the declining trend in international phone revenue. EBITDA (earnings before interest, tax, depreciation and amortisation) rose 10% with careful cost management from lower traffic and roaming costs, foreign exchange gains and the World Cup losses included in the same quarter last year," said SingTel.

The company kept capital expenses at $2.3b on a cash basis, but $3b on an accrual basis with $1.1b for Singapore and $1.9b for Australia. 

SingTel reportedly continues to expect group revenue to grow by mid-single digit level, and for core earnings to inch up by low-single digit level. Further, free cash flow is expected to remain robust at approximately $1.5b while regional associates are expected to contribute about $1.1b in dividends.