Singtel’s Q3 profit down 14.2%

An intense competition in the India market, lower contributions from associates, a marginal erosion in traditional carriage services and lower national broadband network (NBN) migration revenue in Australia led to a 14.2% profit decline for telecommunications firm Singtel for the fiscal third quarter.

Net profit fell from S$959.2 million a year ago to S$822.8 million for the third quarter. Earnings per share for the period fell to 5.04 Singapore cents from 5.88 Singapore cents in the preceding year.

Operating revenue rose 0.9% from a year ago to S$4.6 billion, lifted by growth in the information and communications technology (ICT), digital services, and higher equipment sales.

Commenting on the results, Ms Chua Sock Koong, chief executive of Singtel Group said: 'We have stayed the course despite heightened competition and challenging market and economic conditions. We’ve continued to add postpaid mobile customers across our core business in both Singapore and Australia while making positive strides in the ICT and digital space.'

The group remains focused on investing in networks and building on its digital capabilities, which are areas that are important to Singtel’s customers and the group’s future success, Ms Chua said. The group will also put in effort on managing costs, growing revenues and driving efficiencies, she added.

Giving an outlook for the current financial year, the telco expects operating revenue from its core business – group consumer and group enterprise businesses – to grow by a low single digit. Earnings before interest, tax, depreciation and amortisation or EBITDA, is expected to decline by a low single-digit.

Meanwhile, mobile service revenue from Australia is expected to be stable and the same segment revenue from Singapore is predicted to fall a mid-single digit.

Singtel shares were unchanged hours after the earnings results release, at S$3.03.