Singtel’s full-year net profit increases 14%
Travel revival and 5G adoption boosted the telco firm’s earnings.
After the border reopening, Singapore Telecommunications (Singtel) said its net profit grew 14% to $2.23b driven by mobile growth and price hikes.
The global travel return and roaming, rising 5G adoption, and increase in ICT services demand also propelled its growth.
Its subsidiary, Airtel, benefitted from broad-based mobile growth, helping drive regional associates’ pre-tax contributions up by 10% to $2.27b.
Excluding adverse currency effects and the absence of revenue from NBN migration and Amobee which has been sold, operating revenue went up 5% to $14.62b from mobile and ICT services growth.
The firm’s EBITDA and EBIT also grew 3% and 8% respectively, with cost savings contributing to improved margins.
As a result, underlying net profit was 7% higher at S$2.05 billion, and would have risen 11% on a constant currency basis.
The group may still be capitalising on economic reopening but it remains alert over an uncertain macroeconomic environment with elevated inflation and high-interest rates.
“Continued currency headwinds are also expected from the strong Singapore Dollar relative to the Australian Dollar and regional currencies,” Singtel’s statement read.