Singtel full-year profit grows 2% despite forex hit
Singtel has reported a 2% increase in net profit for the financial year ending in March to S$3.87 billion ($2.81 billion), despite negative foreign exchange movements.
But operating revenue declined 1.5% to S$16.96 billion, the operator revealed. Excluding the impact of forex fluctuations, net profit would have grown 6% and operating revenue would have risen 4%.
Earnings growth for the year was driven by a strong performance at Singtel’s regional mobile associates, particularly increased earnings from Indonesia’s Telkomsel. Pre-tax earnings contributions from these associates grew 5% to S$2.6 billion.
For the fourth quarter, net profit was flat at S$946 million but would have grown 4% in constant currency terms. Regional associates’ pre-tax contribution grew 12%.
“Mobile data was the bright spot. Our regional markets are now making their respective transitions from mobile telephony to mobile internet and harnessing the benefits of extensive investments in 3G and 4G networks and services,” Singtel Group CEO Chua Sock Koong commented.
“We worked with our regional associates to navigate this shift from voice to data. In Singapore and Australia, our businesses were the first to launch innovative data add-on plans and zero-rated music services to meet customers’ increasing demands for OTT content services and data allowances, driving further data monetization.”
Looking ahead to the current financial year, Singtel said that based on current economic forecasts, the operator expects to report a low single digit growth in consolidated revenue.