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Thursday, November 12, 2020 – 8:59 am
SINGAPORE Telecommunications (Singtel) posted a net profit of S $ 466.1 million on Thursday for the six months ended September 30, 2020, reversing the net loss of S $ 127 million a year ago.
This was primarily due to lower exceptional losses compared to a year ago, when Singtel acquired a pre-tax interest of S $ 1.93 billion of Bharti Airtel’s exceptional provision of S $ 5.49 billion.
Earnings per share stood at 2.86 Singapore cents for the quarter, from a loss per share of 0.78 cents a year earlier.
Operating income for the half fell 10.2 percent to S $ 7.42 billion, compared to S $ 8.26 billion the previous year. This was due to lower equipment sales, roaming and prepaid mobile revenues.
Singtel group CEO Chua Sock Koong said the impact of Covid-19 was felt across the group, with significant reductions in roaming and prepaid revenue and weaker customer spending.
The weak performance was compounded by structural challenges in Australia’s fixed line business, with the resale of the low-margin national broadband network (NBN).
However, the information and communications technology segment was the bright spot, with strong growth from NCS and Singtel’s cloud and cybersecurity services in Asia-Pacific as more companies embraced and accelerated digitization, Chua said. .
“While the challenging operating environment is expected to continue as uncertainties of the pandemic persist, we are seeing encouraging signs of a modest recovery in our businesses with sequential revenue growth of 10% in the second quarter, as the Lockdown measures are relaxed and customer spending returns, “she added.
Meanwhile, pre-tax contributions from regional partners rose 11 percent during the six months ended September 30, as Airtel’s improved performance offset the impact of Covid-19 and price pressures in markets. from other associates, Singtel said.
Singtel’s directors on Wednesday approved an interim dividend of 5.1 Singapore cents per share for the financial year ending March 31, 2021, down from 6.8 cents a year ago. The interim dividend will be paid on January 15, 2021, after the close of the books on November 30.
Singtel’s board also approved the adoption of a scrip dividend scheme and the application of the scheme to the interim dividend.
In terms of his outlook, Singtel said he will not provide guidance except that regional partner dividends will be about S $ 1.3 billion and the group’s capex, including 5G networks, will be around S $ 2.2. billion, comprising A $ 1.5 billion (S $ 1.47 billion) for Optus and S $ 700 million for the rest of the group.
Singtel’s stock closed at S $ 2.23 on Wednesday, up S $ 0.01 or 0.5%.
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