SingTel – Lim & Tan

  • Fiscal 4Q ’13 net profits at Singtel came in at S$868 million, down 33% y-o-y, as a result of (1) a one-time loss of S$225 million from the divestment of Warid Pakistan and (2) an exceptional tax credit of S$270million in the same period last year. This is in line with consensus numbers.
  • Excluding exceptional items, Singtel’s underlying quarterly net profit would have just declined 2% y-oy. The operating weakness came mainly from unfavourable foreign currency movements, as well as investments in network, digital initiatives and spectrum.
  • Its overseas business registered just a 1% increase in pre-tax profits (S$514 million), as strong contributions from Telkomsel and AIS offset poorer performance from Bharti Airtel.
  • The telecommunication company increased its dividend payout ratio, bringing its full-year dividends to 16.8 cents per share. This translates into a dividend yield of 4.2% for FY ’13.
  • Looking ahead, Singtel foresees its revenue from its Group Consumer unit to decline by low single digit level due to lower anticipated contributions from Australia. Overall, consolidated revenue for the Group is expected to be stable, growing at low single digit, supported by productivity and yield management initiatives.

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