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SingTel Q4 profit falls 33%

15 May 2013
00:00
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SingTel said its full-year net profit fell 12% to S$3.51 billion ($2.82 billion), due to one-time losses and a decline in group revenue.

The operator reported group revenue for FY13 of S$18.18 billion, down 3% from the prior year.

For the fourth quarter, net profit fell 33% to S$868 million, due to losses associated with the $150 million divestment of SingTel's 30% stake in Warid Pakistan.

Quarterly revenue meanwhile fell 6%, with SingTel attributing the drop to lower revenues at wholly-owned Australian subsidiary Optus.

Revenue from Singapore fell a more modest 2%, as fiber rollout costs and declines in device sales offset gains in digital and mobile services.

Pre-tax earnings from SingTel's regional mobile affiliates – Airtel, Telkomsel, AIS, Globe and PBTL – increased 1% during the quarter to S$514 million.

Looking to FY14, SingTel is projecting “stable” consolidated group revenue, despite a “low single digit” decline in group consumer revenue.

The company expects group capex to increase to a hefty S$2.5 billion, due to spending on expanding LTE coverage and enhancing its 3G networks.

“Our transformation requires twin tracks of confident investments in new markets and digital business and a diligent focus on increasing profitability from our core business,” SingTel group CEO Chua Sock Koong said. “This is a multi-year journey.”

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