Singtel warns of impending net loss in 2H24

The company attributed the loss to $3.1b in non-cash impairments.

Singapore Telecommunications (Singtel) warned shareholders that it is expecting a net loss in the second half of the year and lower net profit for the financial year ended 31 March 2024.

In a bourse filing, the company said it would recognise non-cash impairment provisions of $3.1b in 2H24.

Singtel, however, assured its shareholders that the non-cash impairment provisions will not impact its payment of dividends and the group’s underlying net profit for the financial year ended 31 March 2024 remains “on track.”

“Singtel’s dividend policy is to pay ordinary dividends at between 70% and 90% of underlying net profit and the payment of dividends will not be impacted by the exceptional provisions,” the company said.

“Barring unforeseen circumstances, Singtel is on track to pay at the upper end of its dividend policy for the financial year ended 31 March 2024,” Singtel added.

Meanwhile, the company anticipates recording a $340 million non-cash impairment provision for goodwill in its Asia Pacific cybersecurity business, attributed to general business weakness amid reduced corporate spending.

Additionally, the company expects a $280 million non-cash impairment provision for NCS Australia, primarily due to an increased cost of capital.