SingTel profit up 12% to $1.02bln

Company's revenue increased 25% to $4.47bln while total dividends up 14% to $2.26bln.

Singapore Telecommunications Limited (SingTel) on Thursday announced that its net profit for the fourth quarter ended 31 March 2010 rose 12 percent to S$1.02 billion, driven by strong performances across the Group.

The Group's revenue grew 25 percent to $4.47 billion. Revenue from Singapore recorded double-digit increase of 13 percent to $1.64 billion, with strong performance in Mobile and IT & Engineering. In Australia, revenue rose 6 percent to A$2.23 billion, reflecting strong results in Mobile.

Pre-tax ordinary earnings from the regional mobile associates increased 12 percent to S$546 million, with higher contribution from Telkomsel and fair value gains on the associates' foreign currency liabilities.

The Group recognised a $327 million exceptional foreign exchange gain. The gain was offset by additional impairment provision and fair value losses of S$321 million on investments, including Warid Pakistan. These exceptional items do not impact the Group's cash flow.

For the full year, net profit rose 13 percent to S$3.91 billion, reflecting strong performance from Singapore, Australia and significant improvement in Telkomsel's performance. Over the same period, revenue increased 13 percent to S$16.87 billion and free cash flow grew from S$3.25 billion to S$3.41 billion, according to a SingTel report.

Ms Chua Sock Koong, SingTel Group Chief Executive Officer, said: "The fourth quarter concluded a successful year for us, despite the global financial crisis. With unrelenting focus on execution, we outperformed the markets in Singapore and Australia and met guidance for the financial year."

The Board is recommending a final ordinary dividend of 8.0 cents a share and if approved at the Annual General Meeting, will bring total ordinary dividends for the financial year to 14.2 cents a share, an increase of 14 percent from a year ago. This represents a payout ratio of 58 percent of underlying earnings and is within the Group's dividend payout range of 45 to 60 percent.

Ms Chua, said: "For 2010, in Singapore and Australia, the Group is focused on deepening customer relationships, enhancing customer experience and extending its services into the media and ICT arena. These growth drivers are supported by our continuing cost transformation and investment in organisational capabilities. The Group will continue to leverage the strength of its 293 million regional customers to drive scale synergies, exploit the breadth of customer knowledge and lead and experiment with new services and technologies across the region."