SingTel – Lim & Tan

  • Results for Q3 ended Dec ’12 tell the same story as in recent quarters – underlying profit (excluding exceptionals) fell 2.3% to $874 mln.
  • Singapore was resilient while Optus Australia was marginally better with underlying profit 2.7% higher even as revenue fell 6%.
  • Improved contributions from Telkomsel (Indonesia) and AIS (Thailand) were largely offset by India’s Airtel.
  • Free cash flow rose 5% to $666 mln.
  • Assuming unchanged final dividend of 9 cents as has been the case at the interim stage of 6.8 cents, yield is 4.4%.
  • We are downgrading stock to HOLD following the 9.4% price gain in the year to date (on talk of entry into the Myanmar market), outperforming STI ‘s 4.2% rise.

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