Singtel's net profit hits a record $2.9b in Q2

Thanks to divestment gains from NetLink Trust.

In a release, Singtel reported second quarter net profit of S$2.9 billion, boosted by gains from the divestment of 75.2% of its stake in NetLink Trust in July this year. Operating revenue for the quarter increased 7% to S$4.37 billion. This included revenue contributions from digital marketing company Turn which was acquired in April this year.

Here's more from Singtel:

EBITDA rose 5%, reflecting the strong performance of the Group’s core business bolstered by higher postpaid mobile and fixed broadband customer numbers in Australia. Underlying net profit for the quarter slid 4%, impacted by Airtel, which continues to face intense price competition in India. Excluding Airtel, underlying net profit would have risen 3%.

Ms Chua Sock Koong, Singtel Group CEO said, “Our first half results have been achieved against a tougher business backdrop, a testament to the strength of our core and digital businesses. Digital and ICT services now account for 25% of our revenue, reflecting positive momentum in our digital transformation. Our digital marketing arm Amobee has scored more customer wins and is gaining strong momentum in Asia. With the successful IPO of NetLink Trust, we are pleased to share the proceeds with a special dividend and to further invest in our core and digital businesses.”

The regional associates continued to drive customer growth and higher data consumption. However, intense competition in India, coupled with higher depreciation and amortisation, led to a 7% decline in pre-tax operating profit contributions. Airtel’s lower earnings in India were partially offset by improved operational performance in Africa.

Last month, Airtel announced a merger with Tata Teleservices’ consumer business in a move that will bolster its market leadership and spectrum holdings. Telkomsel strengthened its network leadership with the acquisition of additional 4G spectrum in the recent auction. Profit contributions from AIS rose 16%, led by strong performances in postpaid mobile and fibre broadband services, and positive currency impact. Globe also delivered a strong performance on the back of demand for mobile data related services. However, earnings were affected by the depreciation of the peso.

Ms Chua said, “The regional markets remain attractive as our associates continue to drive customer growth and data consumption. Airtel’s merger with Tata Teleservices in India will create significant synergies and this consolidation will also prove healthier for the Indian telecoms industry in the long term.”

The Group’s customer base grew another 2% in the quarter to 670 million customers across the region.