SINGAPORE -- Singapore Telecommunications Limited (SingTel) announced today its fourth quarter’s underlying net profit[1][1] fell 0.9 per cent to S$959 million from a year ago impacted by the weak Australian dollar and major regional currencies.

Singapore and Australia operations put in resilient performances by achieving solid revenue and EBITDA growth in local currency terms despite the slowdown in both economies and demonstrated good cost management.

For the full year, the Group’s operating revenue was stable at S$14.93 billion. The strong Singapore dollar impacted the Group’s full year results.

A significant portion of the Group’s business is based outside Singapore. This subjects its financial results to foreign exchange volatility as the Group reports in Singapore dollar.

While revenue in local currency terms increased 8.7 per cent in Australia and 13 per cent in Singapore, the Group’s operating revenue in the fourth quarter fell 5.1 per cent to S$3.57 billion as a result of the steep 21 per cent decline in the Australian dollar against the Singapore dollar from a year ago. Group revenue would have gained 10 per cent with operational EBITDA increasing 13 per cent in constant currency terms if the Australian dollar had remained constant against the Singapore dollar from the correspondent quarter last year.

Ordinary earnings from associates fell 21 per cent to S$514 million because of lower contributions from Telkomsel and AIS, and the strong Singapore dollar.

The Group recorded goodwill impairment charges of S$330 million for its associates, Warid and PBTL, that were partially offset by an exceptional gain of S$217 million from Bharti’s dilution of its equity interest in a subsidiary. These one-off items do not impact the Group’s cash flow.

In the quarter, the Group booked S$61 million in tax credits arising from a one percentage point reduction in corporate tax rates and other tax changes in Singapore. Net profit declined 17 per cent to S$903 million in the fourth quarter.

Ms Chua Sock Koong, SingTel Group Chief Executive Officer, said: “This quarter, Australia and Singapore continued their strong momentum and showed resilience with their impressive revenue and earnings growth despite the economic uncertainties. Earnings from Optus and the associates were impacted by the strong Singapore dollar but Telkomsel showed signs of improving its market share and Bharti continued to perform well.”

Singapore Telecommunications Ltd. (SingTel) (OTC: SGTJY)