3 biggest factors that could drag SingTel's earnings growth

Heavier capex is one.

According to Maybank Kim Eng, in the absence of strong catalysts either on the positive or negative front, it remains Neutral on SingTel, with a DCF-derived target price of SGD3.75.

Here's more:

No growth catalyst. We expect the following to depress earnings growth in 2014-15F.

Higher amortisation cost related to BPL to fully kick in by end-2014. Management has said it will aggressively acquire more content to create more differentiation in the light of the government ruling to enforce cross-carry for BPL.

Investments in start-up companies have yielded negative returns so far and with plans to invest another SGD2b within the next three years, a quick turnaround is not likely.

Heavier capex which is expected to be as high as 14% of 2014F revenue (up from 11-12% in “normal” years). SingTel expects capex to rise 25% to SGD2.5b annually on more LTE investments in Singapore and Australia.

If you've been wondering whether SBR could work for your company — yes, probably.

A lot of the companies we partner with started as readers. They'd been following our coverage for a while, saw their own customers and competitors in it, and eventually asked the obvious question: could we do something with you? The answer is usually yes. The shape of it depends on what you're trying to do.

The options are broader than most people assume — thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. Some partners use one channel; most use a mix. We figure out the right combination by starting with your brief, not with our rate card.

So if the question has been on your mind, here's the easy way to ask it.

We'll tell you honestly whether we can help, and how. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia