Singtel Q1 profit soars 317.4% to $2.9 billion on exceptional gains of $2.2 billion

SINGAPORE - Singtel on Aug 13 posted a higher net profit for its first quarter ended June 30, 2025, at $2.9 billion, up 317.4 per cent from $690 million in the year-ago period.

The bottom-line growth came as the telco recorded exceptional gains amounting to around $2.2 billion, primarily from the sale of its partial stake in Airtel and the Intouch-Gulf Energy merger.

Meanwhile, Singtel’s underlying net profit rose 13.9 per cent on the year to $686 million, from $603 million.

The exceptional gains included a net gain of around $1.5 billion from Singtel’s divestment of its 1.2 per cent stake in its India associate Airtel in May. They also included a net gain of $746 million from the merger of Singtel’s former associate Intouch with Thailand-incorporated holding company Gulf Energy Development in April.

Other factors that contributed to first-quarter improvements included the higher earnings before interest and taxes (Ebit) of its Australian unit Optus and its technology services arm NCS.

Optus recorded a 36 per cent year-on-year rise in Ebit to A$133 million (S$111.5 million) driven by revenue growth and disciplined cost management, while NCS posted a 22 per cent on-the-year increase in Ebit to $79 million from higher delivery margins.

Higher profit contributions from Singtel’s regional associates AIS and Airtel also led to the improved first-quarter results, as the telco’s share of regional associates’ post-tax profits climbed 15.4 per cent on the year to $468 million, from $405 million. These were partly offset by lower net profit from its Indonesian associate Telkomsel, amid weaker mobile performance, as well as its Philippine associate Globe, amid weak consumer spending.

Airtel’s profit after tax rose 121 per cent. Singtel’s effective stake in Airtel is around 28.1 per cent – down from 29.4 per cent – after its partial stake sale.

Its Thai associate AIS also posted strong operating performance, with growth in both its mobile and fixed broadband businesses.

Operating revenue was largely stable at $3.39 billion, compared with $3.41 billion in the year-ago period, despite a 7 per cent depreciation in the Australian dollar.

Looking ahead, the group expects its data centre business to be a “bright spot” for financial year 2026 with the completion of Nxera’s data centres in Thailand and Singapore.

“We remain focused on solid execution and operating discipline to drive sustainable growth,” Singtel said.

Shares of Singtel closed 3.6 per cent or 14 cents higher at $4.06 on Aug 13.

THE BUSINESS TIMES