Singtel announced that its net profit fell 5.6 per cent to S$972 million in the second quarter, largely due to one-off gains recorded by mobile associate Airtel in the same period last year.
Overall, Singtel’s performance was resilient in the second quarter, underpinned by strong performance from regional mobile associates which continued to grow customers and data usage. The Group’s customer base increased by 3% to 629 million subscribers, further strengthening its position as South East Asia’s largest communications company.
In the core business, continued growth in mobile data and cyber security services was moderated by ongoing voice to data substitution and intensifying competitive pressures in Australia. Operating revenue was up 2% excluding the impact of mandated cuts to mobile termination rates in Australia.
Telkomsel’s pre-tax profit jumped 22% as it benefitted from network investments and growth across voice, data and digital businesses. Airtel’s pre-tax profits grew a healthy 13% on strong execution and lower fair value losses from Airtel Africa.
In Thailand, AIS continued to accelerate the rollout of its 4G network, reaching 65% of the population at the end of September 2016 and held its market and network leadership position. However, higher handset subsidies, spectrum amortisation and network depreciation impacted earnings this quarter.
In the Philippines, Globe is investing another US$300 million in network expansion which would see the rollout of more LTE 700 and LTE 2600 sites across key cities nationwide.
In October 2016, Singtel’s shareholders approved the purchase of shares in Intouch and Bharti Telecom, the holding companies of AIS and Airtel respectively, paving the way for Singtel to increase its exposure to the high-growth telecom sector in both Thailand and India. The necessary regulatory approvals have been obtained and the transaction is expected to be completed in November 2016.
Chua Sock Koong, Singtel Group CEO
Our associates especially Telkomsel and Airtel performed strongly. Strategic investments in networks and spectrum are paying off as they capture new growth in customers and data usage.
