SingTel predicts depressing outlook for Australia, Singapore businesses

EBITDA growth will be muted.

According to CIMB, SingTel maintains its subdued outlook for Australia and Singapore in FY14. It expects revenue from Group Consumer to decline by low single digits, with lower revenue from Australia, while EBITDA is expected to increase by low single digits. EBITDA growth in Singapore and Australia will be muted.

CIMB said that consolidated group revenue is expected to be stable while EBITDA is expected to grow by low single digits. FY14 capex is expected to rise 25% to S$2.5bn from its investment in LTE and 3G in Singapore and Australia.

"Despite its higher capex, SingTel has nudged up its payout policy from 55-70% to 60-75%," it said.