Singtel’s Q1 profit falls 6.6%
The Singtel logo outside its headquarters in Singapore. (File photo: AFP/Roslan Rahman)
SINGAPORE: Singtel's first quarter net profit fell 6.6 per cent to S$832 million compared to the same period a year ago mainly due to weaker results from its overseas subsidiaries, Airtel and Telkomsel, as well as adverse currency movements.
In a statement released to the Singapore Exchange on Wednesday (Aug 8), Singtel stated that the results of the India-based Airtel was impacted by intense competition, as well as mandated cuts in mobile termination rates in India.
Airtel’s African unit however, continued to see growth momentum.In Indonesia, Telkomsel's earnings were weighed down by intense price competition particularly during the mandatory registration of prepaid SIM cards.According to the telco, this exercise has since been completed and the pricing situation improved towards the end of June.Despite the subdued performance in earnings, Singtel remains upbeat on the outlook of its overseas subsidiaries.
Singtel’s Group CEO Ms Chua Sock Koong said: “While competition remains keen in Indonesia and particularly India, both Telkomsel and Airtel have nonetheless gained market share. We have started to see revenue stabilise on a sequential quarter basis for India. As leading operators in their markets, all our regional associates continue to ride the growth in data and we are positive on their long-term growth potential.”In Australia, Optus logged stronger operating revenue on the back of continued customer growth, supported mainly by sustained investments in networks, technology and content.As for Singapore, consumer revenue saw an upside but continued to be impacted by factors including an increase in demand for SIM-only plans.Operating revenue for the quarter came in at S$4.1 billion, a 0.5 per cent decline compared to a year ago.
Free cash flow grew 13.3 per cent on working capital movements and lower capital expenditure.
Source : https://www.channelnewsasia.com/news/business/singtel-s-q1-profit-falls-6-6-10598442