Intense price competition and lower sales due to travel and movement restrictions contributed to falls in Singtel's group revenue and earnings in the first quarter.
Earnings before interest, tax, depreciation and amortisation (Ebitda) came in at $897 million for the three months to June 30, down 24.2 per cent from $1.18 billion a year earlier, the telecommunications company said in a business update yesterday.
Excluding National Broadband Network (NBN) migration revenues in Australia, Ebitda dropped 27 per cent to $797 million from $1.09 billion a year ago.
Meanwhile, group revenue fell 13.9 per cent to $3.54 billion from $4.11 billion a year ago. Excluding NBN migration revenues, group revenue dropped 14.4 per cent year on year to $3.44 billion, from $4.02 billion.
Roaming and prepaid mobile revenues and equipment sales were "severely impacted" by travel and movement restrictions and lower footfall in retail stores. The global economic slowdown also dampened consumer and business spend.
Some of the group's information and communications technology projects were deferred or delayed, resulting in increased project costs and slower billings.
These factors, together with "intense" price competition across markets and declines in carriage revenues, led to the falls in Ebitda and group revenue.
Operating revenue in the group's Singapore consumer segment fell 21.6 per cent to $406 million with the Government's circuit breaker measures in April and May. A sharp fall in roaming and lower prepaid usage led to a decrease in mobile service revenue. Ebitda fell 13.9 per cent after including $17 million of Jobs Support Scheme credits.
The group's Australia consumer segment's operating revenue fell 13.3 per cent to $1.6 billion. This came as mobile service revenue declined, owing to lower roaming, late-payment fee waivers, credits to front-line healthcare workers as well as a higher SIM-only customer mix and continuing price competition.
Singtel's enterprise business saw operating revenue dip 4.5 per cent to $1.38 billion owing to continued declines in carriage services and weak business sentiment.
Operating revenue for the telco's group digital life segment nearly halved to $153 million from $301 million a year ago, after Amobee's revenue declined and Hooq's business ceased.
Shares of Singtel closed at $2.40 yesterday, down four cents or 1.6 per cent.
THE BUSINESS TIMES