Business

Singtel's Q1 net profit down 5.6% to $891m

Singtel has posted a net profit of $891.6 million in the first quarter, down 5.6 per cent from last year, as Airtel's fight for revenue market share in India dragged on.

Staff restructuring, mainly from Optus in Australia, accounted for a $18 million exceptional net loss, against a net gain of $1 million in the same quarter last year.

Group operating revenue in the three months to June 30 rose 8.3 per cent to $4.23 billion, with global digital and cyber-security businesses contributing more than 9 per cent of revenue.

Underlying net profit slipped 3.5 per cent to $910 million.

Overall, Singtel's regional associates' underlying profit contributions fell 2.5 per cent to $515 million as strong earnings at Telkomsel and contribution from Intouch, which was acquired in November last year, were offset by lower takings at Airtel, AIS and Globe.

Revenue from the Singapore consumer business climbed 1.6 per cent to $567 million, helped by demand for smartphones and recontracts, which lifted equipment sales by 32 per cent.

Revenue for the Australia consumer business rose 6 per cent to $1.72 billion, while Ebitda rose 2.9 per cent as customer growth offset higher content costs.

Revenue from the Group Digital Life segment doubled to $273 million, after Amobee, Singtel's digital marketing arm, acquired ad tech firm Turn in April.

The maiden contribution from Turn helped Amobee achieve breakeven in Ebitda (earnings before interest, tax, depreciation and amortisation) for the first time.

No dividend was declared this quarter. Earnings per share was 5.46 cents, down from 5.93 cents in the first quarter a year ago.

Net asset value per share was $1.77 as at June 30, up from $1.73 as at March 31.

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