Why SingTel's earnings could be finally spared by currency drag

Regional currencies have stabilised.

According to CIMB, SingTel’s conference call has revealed reasons to believe there is now a lower chance of earnings disappointments as regional currencies have largely stabilised.

Here's more from CIMB:

We believe there is now a lower chance of earnings disappointments as the AUD, INR and INR have largely stabilised.

The currency weakness, coupled with withholding tax on the dividends of its associates, were the main culprits contributing to a disappointing 2QFY14 core net profit.

However, going forward, we expect the cost of SingTel’s aggressive investments to weigh down earnings as top-line growth remains pedestrian. SingTel indicated that it will be “more aggressive” on content acquisition for its pay TV franchise.

The investments in LTE in Singapore and Australia elevate capex which will raise depreciation and amortisation. It had guided that capex will rise 25% to S$2.5bn or an estimated 14% of FY14 revenue vs. 11% inFY12.

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