SINGAPORE (Aug 8): Singtel posted 1Q19 earnings of $831.5 million, down 6.6% y-o-y compared to $889.8 million in restated 1Q18 earnings due to weaker results from Airtel and Telkomsel, reduced stake in NetLink NBN Trust, higher withholding taxes and adverse currency movements.
Operating revenue fell 0.5% to $4.1 billion from restated 1Q18 revenue of $4.2 billion due to lower contributions across all businesses with pay television as the exception.
Group Consumer revenue grew to $2.4 billion from $2.3 billion in 1Q18 due to higher contributions from its business in Australia, which helped to offset the weaker results from Airtel in India and Telkomsel in Indonesia.
Revenue from Group Enterprise fell 3% on continued declines in the carriage business as well as the completion of a major infrastructure project in the preceding year.
Meanwhile, the group’s Digital Life business revenue fell 1% in constant currency terms, primarily due to the timing of marketing spend by certain Amobee customers.
In Singapore, consumer revenue rose 2% to $547 million on higher equipment sales and higher home service revenue, boosted by growth in broadband services and the 2018 FIFA World Cup.
EBITDA was however down 3% on-year due to the cessation of Premier League sub-licensing.
As at end June, cash and cash equivalents stood at $624.6 million compared to the restated $524.9 million as at end March.
On its latest quarterly performance, Singtel highlights its resilient 1Q results in spite of keen competition, supported by a strong performance from Australia which saw high customer growth in both the consumer and enterprise segments.
Chua Sock Koong, Singtel group CEO, says the group’s overall focus on digitisation and automation has also helped to improved customer engagement while delivering productivity gains and cost savings over the latest quarter.
“While competition remains keen in Indonesia and particularly India, both Telkomsel and Airtel have nonetheless gained market share. We have started to see revenue stabilise on a sequential quarter basis for India,” says Chua.
“As leading operators in their markets, all our regional associates continue to ride the growth in data and we are positive on their long-term growth potential. As a group, we continue to invest in content, networks and spectrum to maintain our lead in customer experience and better engage our more than 730 million customers across 21 countries,” he adds.
Shares in Singtel closed 3 cents higher at $3.20 on Tuesday.
