, Singapore

Singtel's Q2 profits plummeted 77% to $667m

It blamed a $48m exceptional loss mainly consisting of staff restructuring costs.

Singtel saw its profits plunge 77% to $667m in Q2 from $2.85b in 2017, whilst revenue remained flat at $4.27b, an announcement revealed.

Overall, its H1 profits dropped 60% to $1.5b from $3.74b the previous year, the telco said.

According to its financial statement, despite seeing gains which included $2b from the sale of units in its Netlink trust from the last corresponding quarter, a net exceptional loss of $48m in Q2 which primarily comprised of staff restructuring costs was to blame for large decrease in the Singtel’s profits.

“Our industry continued to face various headwinds and intense competition,” Singtel’s CEO Chua Sock Koong explained.

QoQ, profits in Q2 decreased 19.8% from Q1 which saw profits at $831.5m.

Also read: Singtel Q1 profits down 6.55% to $831.5m

Its revenue would have grown 3.9% in constant currency terms with higher equipment sales, the telco noted.

Underlying net profits in Q2 also fell 21.8% to $715m from $915m during the same period in the previous year, which the firm blamed on lower contributions from Airtel and Telkomsel, as well as a stronger Singapore dollar against the regional and Australian currencies.

Singtel’s group enterprise segment also posted a 4.1% drop in operating revenue to $1.6b thanks to lower information communications technology (ICT) sales due to the lumpy nature of ICT deals which saw some major project completions last year. Consequently, earnings before interest, tax, depreciation and amortisation (EBITDA) fell 4.8%.

However, in its regional associates’ markets, mobile data remained the key growth driver, the announcement stated. Strong performances from Philippines’ Globe and Airtel Africa mitigated lower contributions from Airtel India and Indonesia’s Telkomsel.

Also read: Singtel's share price could get a boost from associate's climbing contributions

“We remain positive about our regional associates which continue to benefit from the growing demand for data and have executed well against the challenges and competition,” Chua noted.

In Singapore, consumer revenue rose 5% in Q2, whilst mobile revenue increased 7% thanks to strong equipment sales as premium handset launches were used to drive consumer purchases. Meanwhile, Singtel also added 41,000 postpaid mobile customers which is the strongest in the past six quarters.

Singtel also launched VIA which is the region’s first cross-border mobile payment alliance with AIS and Thailand’s largest digital bank Kasikornbank in October, the telco added. The service enabled QR code-based mobile payment through e-wallets across Singapore and Thailand, and is projected to expand to other regional associates and non-telco partners.

“We affirm our full-year guidance despite a more challenging economic outlook,” Chua noted. “Whilst ICT revenue was lower in the first half of the year with the completion of a major infrastructure project last year, our order book is strong and we expect ICT to grow in the second half.” 

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Get Singapore Business Review in your inbox
Chua spent 18 years with UBS Wealth Management prior to his new role.
Private-sector economists polled by the Monetary Authority of Singapore expect higher growth, faster inflation in 2021. Economists and analysts from the private sector expect the Singapore economy to grow by 6.8% for the full year of 2021, according to the latest Monetary Authority of Singapore (MAS) survey of professional forecasters. The forecast for the June survey is higher than the 5.8% forecast from the March survey. The twenty-seven respondents expect manufacturing to grow by 8.3%, finance & insurance by 6.0%, construction by 19.3%, wholesale & retail trade by 4.4% and accommodation & food services by 6.5%. Private consumption is expected to grow by 5.2%, lower than the 7.9% forecast from the past survey. Non-oil domestic exports is expected to grow by 7.5% for the full year of 2021. CPI-all items inflation and MAS Core inflation are expected to come in at 1.4% and 0.8% respectively for the full year of 2021. For the second quarter, the economists expect CPI inflation to come in at 1.9% and core inflation to come in at 0.7%.  
The leading F&B establishment operator expands its retail line of condiments and flavourings.
This deepens SGX’s partnership with Nikkei Inc.
These three stocks saw significant growth in trading turnover year-to-date.
The project with a 280-bed capacity is expected to operate by 2022.
Singapore Airport Terminal Services saw the sharpest decline during Monday's trading, with a 1.21% drop.
And the G-7 states demand a probe on the origins of the COVID-19 pandemic.
Approximately 35% of MSEs in the F&B and retail sectors saw their earnings drop by more than half during the Phase 2 Heightened Alert period, according to a DBS survey.
Enterprise Singapore extends the programme that supports food and beverage businesses in providing food delivery services.
The Baht 40b debentures were 1.52 times oversubscribed.
The fund was announced at the inaugural CapitaLand Sustainability X Challenge.
Mapletree Logistics Trust saw the sharpest decline during Friday's trading, with a 0.99% drop.
This may be one of the last times the troubled water treatment firm could meet with securities holders before shutting down.
The company has been listed in the Catalist board of SGX since 2017.