Singtel Q3 profit slips 1.7% amid currency conversion losses

Singtel reported a 1.7 per cent fall in third-quarter net profit as adverse currency movements and investments offset growing mobile data usage by its customers.
Singtel reported a 1.7 per cent fall in third-quarter net profit as adverse currency movements and investments offset growing mobile data usage by its customers. PHOTO: REUTERS

SINGAPORE - Singtel posted a 1.7 per cent drop in net profit to S$954 million in the third quarter, on higher network and spectrum investments, as well as currency conversion losses.

An 8 per cent decline in the Australian dollar in the third quarter hurt the Singapore-dollar translated earnings of Australian unit Optus, which contributed 55 per cent to the group's operating revenue in that period.

Revenue in the three months to Dec 31 was S$4.47 billion, up 1.1 per cent from a year ago.

The thrid quarter was also the first to see the full-quarter contributions from Trustwave, the United States cyber-security firm which Singtel acquired in September last year.

Trustwave contributed S$75 million in operating revenue, S$3 million in earnings before interest, taxes, depreciation and amortization, and a net loss of $8 million.

Third quarter earnings per share stood at 5.98 cents, down from 6.08 cents a year ago.

Net asset value per share was S$1.54 as at Dec 31, from S$1.55 as at March 31 last year.

Earnings we announced before market open on Friday (Feb 12).

The counter was up three cents at S$3.57 as at 11am on Friday.