Singtel's interim underlying profit jumps 10pct; raises annual earnings forecast

SINGAPORE: Singapore Telecommunications (Singtel) posted a 10 per cent rise in first-half underlying net profit on Friday, driven by strong performance from its units and regional associates, while raising its forecast for annual operating earnings from its core units.

Southeast Asia's largest telecom operator said underlying net profit for the six months ended September 30 was S$1.49 billion (US$1.16 billion), up from S$1.35 billion a year earlier.

Singtel said post-tax contributions from regional associates including India's Bharti Airtel, Thailand's Advanced Info Service (AIS) and Indonesia's Telkomsel rose 9.0 per cent to S$993 million.

Operating revenue from Optus, Australia's second-largest telecommunications provider, which Singtel has owned since 2001, fell 2.0 per cent, but stronger mobile performance and cost management translated into improved profitability.

Bolstered by a stellar first-half showing, Singtel now expects fiscal 2027 earnings before interest and tax for the operating company, excluding contributions from regional associates, to grow between mid and high single digits, up from the previously forecast low- to mid-single-digit growth.

The telecom operator declared an interim dividend of 9.0 Singapore cents per share, up from 8.2 Singapore cents apiece last year.