Singtel H1 earnings nearly treble to S$3.4 billion on one-off gains

[SINGAPORE] Telecommunications giant Singtel on Wednesday (Nov 12) posted a 176.4 per cent increase in net profit to S$3.4 billion for the first half-year ended September, from S$1.2 billion in the year-ago period.

This was boosted by a net exceptional gain of S$2.05 billion mainly from the sale of a partial stake in Airtel in May and the Intouch-Gulf merger.

Excluding these one-off items, underlying net profit climbed 13.7 per cent to S$1.4 billion, from S$1.2 billion in H1 the year before.

The increase was driven mainly by improvements at regional associates Airtel and AIS and operating companies NCS and Optus.

The group’s operating revenue dipped 1.2 per cent to S$6.91 billion in H1, from S$6.99 billion in the prior year.

Singtel attributed this to the strong Singapore dollar. In constant currency terms, H1 revenue would have been up 1.9 per cent, the group said.

The board has approved an interim dividend of S$0.082 per share for H1, comprising a core dividend of S$0.064 per share and a value realisation dividend of S$0.018 per share. This is higher than the interim dividend of S$0.07 per share paid out the year before.

Singtel group chief executive officer Yuen Kuan Moon said: “While the macroeconomic outlook remains challenging, and the Optus business faces uncertainty, our business and geographical diversity is lending stability to the group’s performance.”

Shares of Singtel closed 0.4 per cent or S$0.02 higher at S$4.62 on Tuesday.