Singtel's Data-Center Margins Could Fall as Operations Diversify -- Market Talk

Dow Jones06-20

0226 GMT - Singtel's overall data-center operating margins could fall to around 20% in the medium term, UBS analysts say in a note. The Singapore telecom service provider recently announced a joint venture with Telekom Malaysia to develop a data-center campus in Malaysia's Johor state. Singtel's Nxera business currently generates operating margins of around 50%, the analysts note. But margins are likely to dilute as the business diversifies outside Singapore, given lower margins in markets such as Malaysia, India and the U.K., they add. UBS has a buy rating on Singtel and target of S$2.84. Shares are last 0.7% higher at S$2.62. (amanda.lee@wsj.com)

(END) Dow Jones Newswires

June 19, 2024 22:26 ET (02:26 GMT)

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But margins are likely to dilute as the business diversifies outside Singapore, given lower margins in markets such as Malaysia, India and the U.K., they add. UBS has a buy rating on Singtel and target of S$2.84. Shares are last 0.7% higher at S$2.62. (amanda.lee@wsj.com) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  June 19, 2024 22:26 ET (02:26 GMT)\n</p>\n<p>\n  Copyright (c) 2024 Dow Jones &amp; Company, Inc.\n</p>\n</font>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Singtel's Data-Center Margins Could Fall as Operations Diversify -- Market Talk</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSingtel's Data-Center Margins Could Fall as Operations Diversify -- Market Talk\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-06-20 10:26 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://dowjonesnews.com/newdjn/logon.aspx?AL=N><strong>Dow Jones</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>0226 GMT - Singtel's overall data-center operating margins could fall to around 20% in the medium term, UBS analysts say in a note. The Singapore telecom service provider recently announced a joint ...</p>\n\n<a href=\"https://dowjonesnews.com/newdjn/logon.aspx?AL=N\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"SG9999002414.USD","symbol_name":"LIONGLOBAL SINGAPORE TRUST (USD) ACC","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2444450234","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2444450234","pubTimestamp":1718850360,"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"0226 GMT - Singtel's overall data-center operating margins could fall to around 20% in the medium term, UBS analysts say in a note. The Singapore telecom service provider recently announced a joint venture with Telekom Malaysia to develop a data-center campus in Malaysia's Johor state. Singtel's Nxera business currently generates operating margins of around 50%, the analysts note. But margins are likely to dilute as the business diversifies outside Singapore, given lower margins in markets such as Malaysia, India and the U.K., they add. UBS has a buy rating on Singtel and target of S$2.84. Shares are last 0.7% higher at S$2.62. 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The Singapore telecom service provider recently announced a joint venture with Telekom Malaysia to develop a data-center campus in Malaysia's Johor state. Singtel's Nxera business currently generates operating margins of around 50%, the analysts note. But margins are likely to dilute as the business diversifies outside Singapore, given lower margins in markets such as Malaysia, India and the U.K., they add. UBS has a buy rating on Singtel and target of S$2.84. Shares are last 0.7% higher at S$2.62. 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