Singtel weighs minority Optus stake sale as H2 net profit drops 21%

Local Singapore consumer revenue drops 3% amidst intensifying price competition.

Singapore Telecommunications Limited is exploring the sale of a minority stake in Optus as its second-half net profit fell 21%, despite posting a sharp rise in full-year earnings driven by Airtel stake sales.

In a bourse filing, net profit for the six months ended 31 March fell to $2.20b from $2.79b a year earlier. Net profit before tax also declined 24% to $2.42b during the period, whilst revenue rose 2.7% to $7.35b.

Separately, the telco said it is open to bringing in a long-term Australian partner to take a meaningful minority stake in Optus, but added there is no assurance any transaction will materialise.

“The Singtel Group’s ongoing approach to its portfolio of operating companies and associates involves regularly evaluating opportunities to enhance the group’s businesses and performance,” it said.

For the year ended 31 March 2026 (FY2026), Singtel posted a 40% rise in net profit to $5.61b, up from $4.02b a year earlier.

The group said the increase was driven by a net exceptional gain of $2.84b, mainly from stake sales in Airtel, partly offset by provisions largely related to Australia.

Underlying net profit for the full year grew 12% to $2.77b, whilst operating revenue was largely flat at $14.26b. Earnings before interest, taxes, depreciation, and amortisation increased 2% to $3.85b.

Singtel Singapore’s FY2026 revenue fell 3% because of pricing competition in the consumer segment, although enterprise operations contributed more than half of the unit’s revenue.

The group’s enterprise and infrastructure businesses recorded stronger performances during the year.

In Australia, Optus posted 2% revenue growth and a 23% increase in EBIT, supported by mobile price increases, prepaid customer growth at amaysim, and network-sharing revenues.

Digital InfraCo revenue increased 12%, driven by 16% growth at Nxera as data centre utilisation improved and its 58MW DC Tuas facility in Singapore commenced operations in January.

In February, the group and funds managed by KKR & Co. Inc. agreed to acquire approximately 81.7% of ST Telemedia Global Data Centres from STT Communications for $6.6b in cash.

Its IT services arm, NCS, recorded a 7% rise in revenue in FY2026 and posted record bookings of $3.8b, with a book-to-bill ratio of 1.2.