SingTel profit grows 13% in Q1

SingTel grew its net profit for its fiscal first quarter by 13% year-on-year to S$942 million ($672.3 million) despite unfavorable currency fluctuations and intense competition.

Revenue grew a mere 2% to S$4.21 billion, but would have grown 5% if exchange rates had remained stable. Net profit likewise would have grown 16% at constant exchange rates.

The divestment of venture investments - coupled with SingTel's share of Airtel's $1.3 billion sale of telecom towers in five African markets - led to one-off net gains of S$47 million. Excluding these items, underlying profit grew 2%, but was up 5% on a constant currency basis.

Group consumer revenue increased 2%, but ebitda stayed flat due to the weak Australian dollar. Singapore consumer revenue improved 6%, while Australia consumer revenue rose 13%.

SingTel's share of pre-tax earnings from its regional mobile associates grew 5% to S625 million, despite a weaker Indonesian rupiah and significant fair value losses from Airtel.   

The group's total mobile subscriber base grew 8% year-on-year to 565 million

“This quarter’s results reflect the strong execution in our business. Across our different markets, we are taking bold strategic measures to shape our business and the market,” SingTel group CEO Chua Sock Koong said.

“We are accelerating investments in spectrum, networks and systems, and transforming our cost structure. We strive to deliver a great customer experience with innovative products and plans.”