9 Quick Things Investors Should Know About Singapore Telecommunications Limited’s Latest Earnings
Last week, Singapore Telecommunications Limited (SGX: Z74) released its third quarter earnings update for its fiscal year ending 31 March 2018 (FY2018).
Here are nine things investors should know about Singtel’s latest results:
1. Revenue for the reporting quarter was up 4.4% year-on-year to S$4.60 billion.
2. EBITDA (earnings before interest, taxes, depreciation, and amortisation) for the reporting quarter grew 6.0% year-on-year to S$1.29 billion.
3. Singtel’s pre-tax earnings from associates was down 17.8% year-on-year to S$523 million in the reporting quarter.
4. Net profit for the reporting quarter declined by 8.5% year-on-year to S$890 million. Excluding exceptional items, underlying net profit had declined by 8.0% year-on-year to S$898 million.
5. For the reporting quarter, free cash flow came in higher at S$795 million, up 42.1% compared to the same period a year ago.
6. As of 31 December 2017, Singtel’s net debt and gearing stood at S$8.6 billion and 22.5%, respectively. This was an improvement from a year ago when net debt and gearing were at S$9.8 billion and 26.7%.
7. In the third quarter of FY2018, revenue from Singtel’s Group Consumer and Group Digital Life segments grew by 3.1% and 121.9% compared to a year ago. The Group Enterprise segment saw its revenue fall by 3.9%.
8. In terms of EBITDA, the Group Consumer and Group Enterprise segments saw year-on-year growth of 7.4% and 0.1%, respectively, in the reporting quarter. As for the Group Digital Life segment, its EBITDA was still negative in the reporting quarter, but improved from a negative S$23 million a year ago, to S$14 million.
9. Chua Sock Koong, Singtel’s chief executive officer, shared the following comments on her company’s business in the earnings update:
“Despite the current business headwinds, our regional associates’ markets remain attractive with strong mobile data growth. The ongoing consolidation in India will also pave the way for a healthier industry. We believe our associates’ investments in networks and spectrum, strategic partnerships and focus on innovation will pay off. We continue to work closely with them to drive digital adoption, and mobile data growth in their markets.”