Singtel records drop in Q3 operating revenue, EBITDA

Its operating revenue was down 3.2% YoY to $4.24b.

Singapore Telecommunications (Singtel) has seen a drop in its operating revenue and earnings before interest, tax, depreciation and amortisation (EBITDA) for Q3 ended 31 December 2020, the company announced.

The group posted an operating revenue of $4.24b for Q3, down 3.2% YoY from last year’s $4.38b. Singtel’s EBITDA is at $1b in the same period, down 13.5% YoY from the previous year’s nearly $1.2b. Both figures exclude the national broadband network (NBN) migration revenue.

YoY performance was affected by the ongoing COVID-19 pandemic and the structural challenges in the carriage business, according to Singtel.

Singtel also said its ICT services revenue growth of 7.9% mitigated the decline in the legacy carriage business. NCS, Singtel’s ICT arm, recorded “especially strong” bookings.

"Whilst we continue to feel the effects of the pandemic with roaming and prepaid revenues affected by travel restrictions, ICT continued to put in a strong showing led by NCS and Australia enterprise, as businesses accelerated their digitalisation efforts," Singtel chief executive Yuen Kuan Moon said.

Moreover, its mobile services remain subdued, with declines in roaming and prepaid revenues mitigated by growth Optus Choice plans in Australia, which offer improved margins.

Yuen believes that Singtel is well positioned for the new normal despite uncertain outlook, with the group’s 5G rollout, the scaling of NCS, and its digital bank joint venture in Singapore.

“These differentiated assets and developments will prime us for new digital growth, particularly in areas where we can leverage the scale and experience of our Group across Asia, and drive greater efficiencies,” he said.