Singtel reports 42% drop in first-half net profit

SINGAPORE: On Wednesday, Nov 13, Singapore Telecommunications (Singtel) reported a 42% drop in its first-half net profit, mainly due to the absence of a S$1.2 billion gain from the previous year’s Telkomsel merger.

Channel News Asia reports that the telecom company expects a low double-digit growth in earnings before interest and tax (EBIT) for fiscal 2025.

Last year, Singtel’s Indonesian associate, Telkomsel, merged with its parent company’s IndiHome broadband division to strengthen its position in Indonesia’s fixed broadband market.

The company’s CEO provided insights into Singtel’s efforts to develop new revenue streams by focusing on artificial intelligence (AI) and data centres.

Singtel’s CEO, Yuen Kuan Moon, said that NCS and Nxera, Singtel’s data centre brand, are key to promoting AI in the region.

The company is investing in AI infrastructure to support businesses and governments better.

He also mentioned that Singtel plans to expand NCS and launch new Nxera data centres by mid-2025 to meet growing demand.

Optus, Singtel’s Australian subsidiary, currently involved in a legal dispute with the country’s competition watchdog, reported operating revenue of A$4.02 billion (S$3.52 billion) for the six months, matching the previous year.

However, its net profit dropped to S$1.23 billion, down from S$2.14 billion in 2023, missing analysts’ estimates of S$1.37 billion.

The company announced an interim dividend of seven Singapore cents per share, up from 5.2 last year. /TISG

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