SingTel Reports Q1 Profit

SingTel reports net profit up 9.5% to S$762M; earnings per share increased 22.2%

August 4, 2005

2 Min Read

SINGAPORE -- Singapore Telecommunications Limited (SingTel) today announced its unaudited results for the first quarter ended 30 June 2005.

Group

During the quarter, Group revenue increased by 6.4 per cent to S$3.21 billion. Operational EBITDA was stable while EBITDA increased 6.1 per cent to S$1.60 billion.

Underlying net profit after tax increased 9.5 per cent to S$762 million, mainly driven by robust growth from its overseas associates. Associates contributed 36 per cent or S$273 million of the Group’s post-tax profits with regional mobile accounting for 94 per cent or S$257 million.

Earnings per share increased by 22 per cent as compared to the same period last year, reflecting a 6.8 per cent reduction in average shares on issue, following the completion of the capital reduction exercise.

Free cash flow for the quarter is S$594 million, with S$409 million from SingTel and S$185 million from Optus.

Mr Lee Hsien Yang, SingTel’s President and CEO, said: “Reflecting the success of the Group’s international expansion strategy, our overseas investments contributed 75 per cent of Group’s revenue and 68 per cent of EBITDA.

“In particular, we are pleased with the profitable regional mobile business. Bharti and Telkomsel, both mobile leaders in their respective markets, continue to contribute strongly to the Group’s earnings growth. In keeping with our strategy to raise our stake in the mobile associates, we increased our shareholding in Bharti to 31 per cent.”

He added: “After a successful turnaround in recent years, Optus is now entering a new phase of investment to deliver long-term improvements in revenue and margin growth. It continues to outperform the industry, gaining market share in the fixed line business and aggressively defending its share of the mobile segment in a very competitive Australian market.

“In Singapore, our business continues to generate robust cash flows, despite continued declines in our direct exchange line revenues. SingTel remains committed to providing quality products and services at competitive prices to ensure that we continue to do well in the mature Singapore market.”

Singapore Telecommunications Ltd. (SingTel)

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