Singtel Posts First-Half Profit Drop on Absence of Divestment Gain

Dow Jones11-14

Telecom operator Singtel's six-month profit fell sharply due to the absence of a one-off gain a year earlier but underlying profit rose, supported by contributions from its regional associates and Australia business.

Singtel's net profit for the period ended September was 1.23 billion Singapore dollars (US$919.1 million), a 42% decrease compared with a year earlier, the company said Wednesday.

Last year, the company recorded a S$1.21 billion one-off gain from reducing its effective equity interest in its Thailand associate Telkomsel.

The company said that excluding the one-off gain, its underlying profit was up 6% to S$1.19 billion. Revenue during the period was nearly S$7.0 billion compared with S$7.03 billion in the year-ago period.

Operating revenue from its Australian unit Optus, which Australian regulators sued over alleged misconduct involving vulnerable consumers, was nearly flat at 4.02 billion Australian dollars (US$2.63 billion).

"Optus has taken disciplinary action (including terminations) against staff whom we determined were responsible for the misconduct," Optus said in a statement.

Singtel has declared an interim dividend of S$0.7 per share, up 35% on the year.

After considering the first-half performance, the company said that it expects earnings before interest and tax to grow by double digits for the financial year ending March 31, 2025.

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