Singtel Q3 profit surges 183.4% to $1.3 billion on exceptional gains; shares up 2.4%

SINGAPORE - Singtel’s net profit for the third quarter ended Dec 31 climbed 183.4 per cent to $1.3 billion from $465 million in the same 2023 period.

This was mainly attributed to a net exceptional gain of $639 million, compared with a net exceptional loss of $94 million in the same period the previous year, said the telco giant in a business update on Feb 19.

For the quarter, exceptional gains were recorded from the disposal of partial stakes in its Thai associate Intouch and Indara, formerly known as Australia Tower Network, as well as its share of Airtel’s exceptional net gain.

Operating revenue rose 1 per cent on the year to $3.6 billion, while the group’s earnings before interest, taxes, depreciation and amortisation (Ebitda) increased 0.9 per cent to $943 million from $935 million previously.

Underlying net profit rose 21.6 per cent to $680 million from $559 million, and was 22.7 per cent higher in constant currency terms.

Singtel shares rallied when the stock market opened, with the counter up eight cents or 2.4 per cent to $3.41 as at 9.38am.

Singtel group chief executive Yuen Kuan Moon said: “Optus and NCS maintained strong performances, and our regional associates Airtel and AIS delivered higher contributions.”

He added that the group “will stay focused on lifting business performance by capturing growth opportunities in artificial intelligence, data centres and global connectivity”.

For the first nine months, Singtel’s revenue remained stable at $10.6 billion. Ebitda was up 6.2 per cent at $2.9 billion from $2.7 billion in the prior year, while net profit fell 2 per cent to $2.55 billion from $2.6 billion previously.

The decline in net profit was attributed to “a lower exceptional gain”. In the previous corresponding period, the telco giant’s net exceptional gain was lifted by a $1.2 billion gain from the dilution of its equity interest in Telkomsel.

Taking into account the business performance to date, the group expects the growth rate for earnings before interest and taxes excluding contributions from its associates to be “in the high teens to low twenties” for financial year 2025. It was previously forecast to be “in the low double digits”.

Singtel expects to pay a total dividend of around 16.5 cents per share for financial year 2025.

Shares of Singtel closed four cents or 1.2 per cent higher at $3.37 on Feb 19.

THE BUSINESS TIMES