On the latter, Singapore Telecommunications (SGX:Z74
) (Singtel) has targeted $600 million in indirect operating expenditure (opex) savings across Singapore and Australia operations into FY2026. StarHub (SGX:CC3) , on the other hand, aims to achieve $280 million in both capital expenditure (capex) and opex savings into FY2027 from the modernisation of its information technology (IT) stack and cloud investments.
The Singapore research team from RHB Bank Singapore has remained “neutral” on the telecommunications (telco) sector after the respective telcos have released their results during the earnings season for the quarters ended Dec 31, 2023.
“Further improvement in roaming traffic and cost restraint while competition stayed tight. Cost optimisation remains a key narrative, with industry consolidation not ruled out in the medium-to-longer term,” notes the team.
