Singtel profit to contract 9% in FY 2020: analyst

Revenue in the enterprise segment is tipped to fall 3% by FY20.

Singtel’s net profit is projected to contract 9% on FY 2020 as the telco continues to struggle against intense competition in its key markets, UOB Kay Hian reported. Overall, three-year net profit is expected to grow at a CAGR of 6% in FY19-22 as its subsidiary, Airtel, boosts earnings.

Also read: Singtel to receive boost as contributions from associates recover: analyst

Competition is also expected to remain intense in Singapore given the potential entry of another one or two mobile virtual network operators (MVNOs) in the near future.

“The recent Circles.Life’s “S$5 for 2GB” plan – on the surface suggests bite-sized offerings but our recent meetings with telcos seem to suggest that prices have stabilised in Singapore at around the S$18-20/month range without massive data discounting practices. Instead, telcos are finding niche opportunities like bite-sized offerings for low data users and segmented target packages,” analyst Chong Lee Len said in a report.

Revenue in the enterprise segment is also expected to decline 3% YoY due to renegotiation of public contracts in Singapore and weak enterprise business in Australia, particularly in the financial sector. With Australian banks pouring resources into beefing up compliance vs traditional IT capabilities, Optus’ enterprise business continues to suffer a structural decline.

Also read: Singtel Q1 profits crashed 35% to $541.1m in Q1

Its post-paid average revenue per user (ARPU) also fell 13% YoY to $40 per month in Q1, partly attributed to the entry of SIM-only post-paid plans from MVNOs. For Q4, ARPU is expected to fall 12% YoY to $36 per month.

Singtel is expected to focus on defending its market share in both Singapore and Australia. The firm has added 35,000 post-paid subscribers in Q1 FY 2020 with the inclusion of its mobile plan GOMO’s SIM-only offering.

The telco is expected to see higher equipment sales in Q3 after the launch of its new mobile plans for iPhone 11, iPhone 11 Pro and iPhone 11 Pro Max.

You're the reader we write for. You're also the person our partners want to reach.

If that sentence describes you — a founder, a C-suite, someone whose attention companies pay good money for — then you already understand why SBR works. We've spent twenty years earning the trust of readers exactly like you. Which is exactly what makes this an interesting place for your company to show up, too.

The ways it can show up are broader than most people assume — thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The right fit depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.

If your company has something this audience should know about, we'd like to hear what you're working on.

No rate cards until we understand the brief. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia

Top News

30 One-Sentence Stories From People Who Have Built Better Habits

None of these stories are mine. They were sent to me by readers of Atomic Habits. My hope is that these examples will illustrate how real people are putting the book into practice. They will show you what people are actually doing to build good habits and break bad ones. And hopefully, they will spark some ideas for how you can do the same.

news conversion

SBR 5 Lorem Ipsum News 2 [8 May]

Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.

SBR 4 Lorem Ipsum [8 May Top Stories]