SingTel FY net grows 4% despite forex hit

SingTel FY net grows 4% despite forex hit

Dylan Bushell-Embling  |   May 15, 2014
telecomasia.net
SingTel has reported a 4% increase in net profit for both the fiscal fourth quarter and the full financial year, despite the impact of unfavorable currency fluctuations.
 
Net profit for the year ending in March grew to S$3.65 billion ($2.92 billion). Depreciation of the Australian dollar and the local currencies of its regional associates against the Singapore dollar impacted growth – in constant currency terms, net profit would have increased by 10%.
 
Operating revenue fell 7%, or 2% in constant currencies. SingTel's wholly-owned Australian subsidiary Optus reported a 13.2% slump in revenue to S$9.93 billion.
 
For the fourth quarter, profit reached S$898 million. Revenue declined 7.9% to S$4.13 billion. Singapore consumer revenue grew 5%, but this was offset by a 5% decline in revenue in Australian dollars at Optus.
 
SingTel's share of pre-tax earnings from its regional mobile associates – Bharti Airtel in India, AIS in Thailand, Globe in the Philippines, PBTL in Bangladesh and Telkomsel in Indonesia – increased 9% during Q4 to S$558 million. In constant currency, their contribution would have grown 23%.
 
SingTel is currently projecting stable revenue and ebitda for FY15. The company has announced plans to invest in strengthening its core business and finding new growth engines. To this end, SingTel has allocated up to S$2 billion for new digital investments through to FY16.
Dylan Bushell-Embling

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