SingTel eyes shelling out $2b for digital business

It's for next 3 years.

According to OCBC, SingTel posted 2QFY14 revenue of S$4163.1m, down 9% YoY and 3% QoQ, again weighed by weaker regional currencies (AUD, IDR and INR depreciated 10% YoY against SGD).

Reported net profit was flat YoY and down 14% QoQ at S$870.4m; excluding exceptional items, core earnings was flat YoY and +1.4% QoQ at S$884.0m.

Here's more from OCBC:

1HFY14 revenue slipped 7% to S$8456.4m, meeting 50% of our FY14 forecast, while reported net profit gained 4% to S$1881.4m; core earnings rose 3% to S$1781.0m, or 48% of full-year forecast.

SingTel declared an interim dividend of 6.8 S cents, same as 1HFY13, representing a payout ratio of 61%.

SingTel has kept its guidance for FY14 unchanged. As before, SingTel expects revenue from Group Consumer to decline by a high singledigit level, with lower revenues from Optus, and EBITDA to decline by a low single-digit level. Group Enterprise revenue should remain stable; but EBITDA to see a low single-digit decline.

Its Group Digital Life revenue should grow by at least 50% on an organic basis; but it will continue to see startup losses. As such, it expects consolidated group revenue to decline by a mid-single digit level and EBITDA to decline by a low single digit level; EBIT will also fall by a mid-single digit level.

Capex will remain at S$2.5b to support LTE coverage expansion; and the group will invest up to S$2b for digital business over the next three years.

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