Singtel's Q3 profit dropped 24% to $627.2m

It was blamed on weakness in the enterprise business and lower exceptional gains.

Singapore Telecommunications (Singtel) saw its profit fall 24% YoY to $627.2m in Q3 from $822.8m in 2018, an SGX filing revealed. Likewise, its operating revenue slipped 5% YoY to $4.38b from $4.63b over the same period.

The profit decline was blamed on weakness in the enterprise business, the impact of the final settlement of a gain on the Airtel Africa pre-IPO investment and lower exceptional gains, whilst its operating revenue was affected by lower equipment sales, weak business sentiment and spending, continued price erosion in carriage services and heightened market competition.

In contrast, its EBITDA inched up 1% YoY to $1.16b, thanks to an increase in NBN migration revenue in Australia and cost management initiatives. Interim one-tier exempt ordinary dividend is at 6.8 cents apiece, same as in FY 2019.

Singtel’s regional associates’ pre-tax contributions for the quarter rose 15% YoY, driven by strong data growth across all markets. Meanwhile, Airtel’s losses narrowed on the back of strong 4G customer growth, customer upgrades and price increases in India. Its African operations also posted a growth momentum in carriage and mobile money services.

In Australia, revenue rose 1% as higher NBN migration revenue was partially offset by lower
equipment sales and price competition, whilst its mobile service revenue also dipped due to a higher mix of SIM-only customers and data price competition.

Group enterprise’s Q3 revenue was down 4% and EBITDA declined 11%, as its performance was impacted by weakness in Australia, cautious business sentiment and continued erosion in traditional carriage services.

Lastly, Singtel’s group digital life slipped 15% due to spending cuts by Amobee’s major clients and declines in the digital marketing arm’s managed media and social businesses. However, overall EBITDA improved 49% as Amobee delivered a significant contract milestone for ITV, UK’s biggest commercial TV broadcaster, and strengthened cost management.