Singtel posted revenue of S$4.11 billion for the quarter ended 30-June-2019, up 2% in constant currency, on growth in Consumer Australia and the Group’s digital businesses which continued to scale. Net profit was S$541 million for the first quarter, down 35% largely due to Airtel’s losses and higher depreciation and amortisation costs in network and spectrum across the Group. Excluding Airtel, however, net profit was down 3%.
Ms Chua Sock Koong, Singtel Group CEO said, “The Airtel impact aside, business is stable as we continued to execute to strategy in the first quarter. We added postpaid mobile customers in Singapore and Australia and grew our digital businesses Amobee and Trustwave. This was achieved against a backdrop of heightened competition, sustained industry headwinds and subdued economic growth. We are focused on the digitalization of our core communications business where innovations in digital products and services are proving to be key differentiators, leveraging our network superiority. We are also driving productivity gains and cost savings through digitalisation.”
Some highlights:
- Overall pre-tax earnings contributions fell 14% due to Airtel in India as higher network costs, depreciation and finance charges from its 4G network expansion affected financial performance. This quarter, Airtel India saw improved ARPU which drove growth in its mobile revenue. E
- Telkomsel Indonesia posted an 18% increase in earnings on robust growth in data and digital services.
- In Thailand, AIS and Intouch’s earnings were mainly impacted by an additional provision for statutory payments under revised labour legislation.
- In the Philippines, Globe saw strong data revenue growth from its mobile and broadband businesses.
- In Australia, Optus is rolling out its 5G fixed wireless service which is targeted to reach 1,200 sites by March 2020. Revenue increased 8% led by growth in NBN migration revenue, equipment sales and handset leasing. EBITDA rose 9% primarily from higher NBN migration revenue. Optus continued to drive customer growth, adding 50,000 postpaid handset customers. Mobile service revenue declined 7% from lower ARPU due to an increased mix of SIM-only customers and heightened data price competition. Optus Sport now reaches over 700,000 customers with compelling content on the Premier League, Champions League Final and the FIFA Women’s World Cup. Optus also launched Apple Music to further boost its content suite.
- In Singapore, mobile revenue was stable. Higher equipment sales offset the decline in local and roaming voice services. Postpaid customers grew 35,000 this quarter with strong demand for its all-digital, no-contract GOMO plans. Revenue from fixed services was down 3%, excluding contributions from the 2018 FIFA World Cup broadcast in the prior period. Pay-TV customers increased by 1,100 on a sequential quarter basis. Operating expenses fell 6% from strong cost management mainly through digitalisation. However, lower voice revenue resulted in a 4% decline in EBITDA.
- Group Enterprise revenue slid 5% due to lower Optus Business volumes and the continued pressure on carriage services amid a more cautious business environment. Optus Business in Australia was impacted by weak demand from the government and financial sectors, and a large ICT contract in the same quarter last year. Excluding Optus Business, revenue would have been stable.
- Group Digital Life’s revenue rose 17%, driven by the continued growth in Amobee’s programmatic advertising business and contributions from Videology. Mobile video streaming service HOOQ saw healthy revenue growth from a higher base of paying subscribers in Southeast Asia and India. Amobee continues to deliver positive EBITDA.
