SingTel Reports Q4, Full Year

SINGAPORE -- Singapore Telecommunications Limited (SingTel) today announced its audited results for the quarter and the year ended 31 March 2005.

Results for the year ended 31 March 2005

The SingTel Group’s full-year operating revenue rose 5.2 per cent to a record S$12.6 billion. Operational EBITDA grew by 8.7 per cent to S$4.66 billion.

Underlying net profit after tax was S$3.06 billion, an increase of 22 per cent. Underlying earnings per share grew 26 per cent to 17.8 cents partly due to a smaller capital base following the completion of the capital reduction exercise in September 2004. Net profit after tax was lower by 27 per cent at S$3.27 billion mainly due to exceptional gains recorded in the divestment of Belgacom in the previous financial year.

Mr Lee Hsien Yang, SingTel’s President and CEO, said: “I am delighted to report that our financial results for the year have exceeded the targets that we set a year ago.

“With strong profit and cash flow, the Board is recommending an ordinary dividend of 8.0 cents per share, 25 per cent higher than the previous year. In addition, we will be seeking approval for a special dividend of 5.0 cents per share. The combined gross dividend of 13 cents per share, or a gross payout of S$2.16 billion, represents a yield of over 5 per cent.

“While the Singapore business returned to growth and continues to generate robust cash flow, the strong performance of the Group is driven mainly by international expansion. Operations outside Singapore accounted for over 70 per cent of the Group’s revenue and 66 per cent of EBITDA.

“In Australia, Optus has executed a dramatic turnaround over the last three years. EBITDA margins have expanded to 31 per cent. It has delivered underlying NPAT of A$648 million and is now making a healthy contribution to the Group’s earnings and cash flows.

“Our regional mobile associates continued their rapid growth, increasing their combined subscriber base by 42 per cent and raising the contributions from their ordinary operations to the Group’s earnings by 28 per cent.”

Results for the quarter ended 31 March 2005

The Group’s revenue for the quarter rose 2.6 per cent to S$3.25 billion. Operational EBITDA increased by 8.2 per cent to S$1.20 billion.

Underlying earnings per share increased by 50 per cent to 5.30 cents due to improved operating performance. The increase was also partly due to a 7 per cent decline in average shares on issue after the September 2004 capital reduction exercise.

Contributions from the ordinary operations of the Group’s associates amounted to S$317 million, an increase of 18 per cent compared to the same quarter last year after adjusting for Belgacom.

The Group’s underlying net profit was S$881 million, an increase of 40 per cent.

Conclusion

Mr Lee said: “Dividends are up and we are making generous distributions to our shareholders. Our medium term target is to grow underlying earnings at double digits.

“The Singapore business should continue to generate strong free cash flow. In Australia, we target revenue growth in Optus to exceed overall market growth.

“The success of the Group’s international expansion strategy has helped to drive double digit earnings growth. Our regional mobile associates are expected to continue to deliver double digit earnings growth, driving similar growth in the overall contributions from associates.

“SingTel is well positioned in the region as a blue chip growth stock. We are delighted that many respected independent parties have recognised this commitment to create value for our shareholders.”

Singapore Telecommunications Ltd. (SingTel)