Singtel, Southeast Asia’s largest telecom operator, posted an underlying net profit of S$831 million ($649.22 million), above the Visible Alpha consensus estimate of S$746.1 million and the S$686 million reported a year earlier, according to Reuters.
The company’s regional associates made a significant contribution to the stronger performance. Post-tax contributions from these businesses increased 16.1% to S$543 million, primarily driven by higher earnings from India’s Bharti Airtel and Thailand’s Advanced Info Service.
Optus also delivered a solid performance during the quarter. The Australia-based subsidiary reported operating earnings of A$152 million ($107.14 million), marking a 14% increase from the same period a year earlier.
Singtel’s digital and technology businesses also supported earnings growth. NCS, which provides services including artificial intelligence, cloud computing and cybersecurity to enterprises, recorded a 29% increase in operating earnings to S$102 million. Digital InfraCo, which operates data centre services, reported a 10% rise in earnings, Reuters reported.
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The strong performance from these businesses helped offset weakness in Singtel’s Singapore operations, where operating revenue declined 3.1% amid intense price competition and lower average revenue per mobile user.
Despite the better-than-expected earnings, Singtel shares were down 0.7% around noon in Singapore, compared with a 0.5% decline in the benchmark FTSE Straits Times Index.The results highlight the growing importance of Singtel’s regional investments and digital infrastructure businesses as the company navigates competitive pressures in its core Singapore telecom market.
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