SINGAPORE, Aug 11 — Singtel reported a net profit of S$944.3 million (RM2.18 billion) for its first quarter, a marginal increase from S$941.6 million in the same quarter the previous year when it had divestment gains.
The divestment gains in the year-ago period were from certain venture investments and Airtel Africa’s tower assets.
Its underlying net profit for the quarter was up 6.6 per cent or 8.8 per cent in constant currency led by its core business and increased contributions from regional associates.
Operating revenue for the quarter declined 7 per cent or 6 per cent in constant currency terms due to mandated cuts to mobile termination rates in Australia.
Operating revenue dipped 1 per cent in constant currency terms excluding the impact of the rate reduction.
Chua Sock Koong, Singtel Group CEO said: “The recurring theme across all our markets is mobile data. Having invested extensively in 3G and 4G networks and services and with the rise of smartphone adoption, our associates were well-positioned to successfully drive data usage and customer growth.
“Across Singapore and Australia, our quality networks, differentiated content and flexible data pricing plans also helped us stand out from competitors.”
Singtel said that its mobile data services remained a key growth driver across the operations with cyber security being the other key driver as revenues grew on led by the acquisition of Trustwave in September last year.
Strong performances by Telkomsel and Airtel saw pre-tax contributions from the regional associates increase 14 per cent for the quarter to S$714 million. In India, Airtel continued to strengthen its market leadership and accelerate its 4G network rollout - also delivering growth in data and voice services.
In Thailand, AIS successfully acquired the 900MHz spectrum, securing continuity of its network leadership while Globe in the Philippines has entered into an agreement to acquire 50 per cent of the telecom assets of San Miguel, including its 700MHz spectrum.
ICT was also a key performer as demand for cyber security services grew, with cyber security revenues of S$109 million for the quarter.
Chua added, “Our ICT business is getting a solid boost from new opportunities in cyber security which has emerged as a critical issue for both governments and businesses.
“Our capabilities and expertise in this global field, together with our trusted partners’ capabilities, are winning new business.” — TODAY
