Singtel reports robust Q3 earnings growth

Singapore Telecommunications Limited reported group earnings results for the third quarter and nine months ended December 31, 2014. For the quarter, the company reported group revenue of SGD 4,427 million compared to SGD 4,263 million a year ago.

EBITDA was SGD 1,229 million compared to SGD 1,264 million a year ago. Underlying net profit was SGD 970 million compared to SGD 910 million a year ago. Net profit was SGD 970 million compared to SGD 872 million a year ago.

Free cash flow was SGD 669 million compared to SGD 569 million a year ago. Profit before EI and tax was SGD 1,285 million compared to SGD 1,236 million a year ago. Net profit rose 11.2% boosted by higher mobile data revenue and bigger contributions from its mobile partners in Australia and elsewhere.

The company delivered a solid third-quarter performance and successfully increased mobile data revenues with better networks, technology, content and service. Post-tax profit of its associates rose 29% to SGD 458 million, led by Telkomsel in Indonesia and Bharti Airtel.

For the nine months period, the company reported group revenue of SGD 12,884 million compared to SGD 12,720 million a year ago. EBITDA was SGD 3,817 million compared to SGD 3,858 million a year ago. Underlying net profit was SGD 2,830 million compared to SGD 2,690 million a year ago. Net profit was SGD 2,843 million compared to SGD 2,754 million a year ago. Free cash flow was SGD 2,585 million compared to SGD 2,381 million a year ago.

Profit before EI and tax was SGD 3,966 million compared to SGD 3,756 million a year ago. Net debt as at December 31, 2014 was SGD 7.9 billion. The company provided consolidated earnings guidance for the year ending Match 31, 2015. Revenue from Core Business (comprises Group Consumer and Group Enterprise) to be stable and EBITDA to increase by low single digit level. Mobile Communications revenue from Singapore to increase by mid single digit level. Mobile service revenue from Australia to increase by low single digit level. Group ICT revenue (comprises Managed Services and Business Solutions) to increase by low single digit level. Revenue from Group Digital Life to exceed SGD 300 million and negative EBITDA to increase to approximately SGD 200 million to SGD 250 million. Consolidated revenue and EBITDA of the group, excluding acquisitions, to be stable.

Capital expenditure for the group is expected to approximate SGD 2.3 billion, comprising approximately SGD 900 million for Singapore and the balance for Australia.

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SG Wealth Builder