Singtel’s H1 profit falls 42.4% to S$1.23 billion in absence of exceptional gain

SINGTEL’S net profit for the first half ended September fell 42.4 per cent year on year to S$1.23 billion from S$2.14 billion.

This was in the absence of a S$1.2 billion exceptional gain booked in the same period a year prior, for the issuance of Telkomsel shares to integrate Indonesian broadband provider IndiHome.

On Wednesday (Nov 13), the telecommunications provider declared an interim dividend of S$0.07 per share, up from S$0.052 in H1 FY2024.

The latest dividend comprises a core dividend of S$0.056 per share and a “value realisation” dividend of S$0.014 per share, both of which will be paid out on Dec 9.

Earnings per share for H1 FY2025 stood at S$0.0746, versus S$0.1294 a year prior.

Revenue for the half year dropped 0.5 per cent to S$6.99 billion versus S$7.03 billion in the year-ago period, which Singtel considered to be “stable” post the divestment of Trustwave.

Excluding associate contributions, earnings before interest and taxes (Ebit) grew 27 per cent to S$738 million.

The group attributed this to better mobile performance and disciplined cost management at Optus, as well as continued margin improvements and solid bookings at NCS, with Optus’ and NCS’ Ebit rising 58 per cent and 40 per cent, respectively.

Group chief executive Yuen Kuan Moon said the group’s priority for the second half of the year is the continued execution of the Singtel28 plan, which is “designed to drive further Ebit improvements”.

“We will continue scaling NCS and building out Nxera’s data centres which will commence operations from mid-2025 to meet increasing demand. We will also keep supporting our regional associates to capture growth opportunities in the areas of enterprise and fixed broadband,” he added.

Shares of Singtel ended Tuesday S$0.04 or 1.3 per cent lower at S$3.16.