Singtel share price down 1% after full-year profit sinks 44%

Singtel on Wednesday posted a 0.4% rise in net profit to S$773 million for the fiscal fourth quarter ended March 31, compared to S$769.6 million a year ago.

For the full year, net profit fell by 43.5% to S$3.09 billion, from S$5.47 billion a year ago, due to an exceptional gain in the previous year from the group’s NetLink Trust divestment, and lower contributions from the trust.

Earnings per share (EPS) for the quarter was at 4.74 Singapore cents, compared to 4.72 Singapore cents a year ago. For the full year, EPS stood at 18.96 Singapore cents, lower than the 33.53 Singapore cents a year ago.

Singtel share price

Singtel shares eased 0.95% or S$0.03, to S$3.12 minutes into trading on Wednesday morning.

The company’s shares had closed at S$3.15 on Tuesday, higher by one Singapore cent.

Singtel earnings report highlights

Revenue for the fourth quarter gained 1.9% from S$4.26 billion to S$4.34 billion, supported by growth from Singtel’s consumer and digital businesses.

Pre-tax profits for regional associates sank 20% to S$389 million from Airtel’s results, which was impacted by competitive pressures and spectrum amortisation and network costs from the continued expansion of their respective 4G networks.

Underlying profit for the full year was lower by 21% on losses from Airtel, currency headwinds, lower contributions from Telkomsel, and an erosion of carriage services.

Singtel’s board is recommending a final dividend of 10.7 Singapore cents per share, bringing total ordinary dividend per share for the year to 17.5 Singapore cents. The dividend will be paid on August 15, 2019, pending shareholders’ approval.

Going forward, the group expects its consolidated revenue to grow by a mid-single-digit. Capital expenditure is predicted to be around S$2.2 billion.