SingTel profits drop 41% in Q1, revenues up

www.telegeography.com Wednesday, 9 May 2007

Singapore Telecommunications (SingTel) reported a 2% rise in operating revenue to SGD3.33 billion (USD2.19 billion) for the three months to 31 March 2007, but said that net profit slumped 41.2% to SGD989 million, largely the result of lower earnings from its operations in Indonesia and the absence of a one-time gain. For the full year, revenues increased marginally by 0.1% to SGD13.15 billion, and net profits were down 9.2% at SGD3.78 billion.

The group’s mobile businesses fared best reporting Q12007 revenues of SGD238 million, up 8.7% year-on-year, as its total aggregate regional mobile base swelled by twelve million to more than 124 million users, and post-paid ARPU stabilised at SGD71 (USD46.8) per month. SingTel has forecast ‘double-digit’ growth in underlying profit over the next five years, which it says will be boosted by new acquisitions and increased stakes in affiliates such as Telkomsel in Indonesia. The mobile operator contributed pre-tax profit of SGD258 million in the fourth quarter, up 5.2% quarter-on-quarter, but down from the 73% growth seen a year ago. The lower than expected rise was attributed to heavy floods in Jakarta in February and the effects of currency depreciations in the rupiah against the Singapore dollar.