10 Quick Things Investors Should Know About Singapore Telecommunications Limited’s Latest Results
Earlier today, Singapore Telecommunications Limited (SGX: Z74), or Singtel, released its 2019 second-quarter (2Q FY19) earnings update. Here, we will look at 10 things about the presentations that we think are important to note:
1. Revenue was unchanged year-on-year at S$4.3 billion.
2. EBITDA (earnings before interest tax depreciation and amortisation) for the quarter declined 9.6% year-on-year to S$1.1 billion.
3. EBITDA margin fell from 29.3% in the corresponding period last year to 26.4%.
4. Share of associates’ pre-tax earnings plunged 50.0% year-on-year to S$330 million.
5. Similarly, net profit declined 76.6% year-on-year to S$667 million.
6. Free cash flow came in lower at S$676 million, down 5.8% as compared to the same period last year.
7. As of 30 September 2018, net debt stood at S$9.8 billion and gearing was 25.3%.
8. In the latest quarter, Consumer and Digital Life segments’ revenue was up by 1.5% and 10.2%, respectively, as compared to the same period last year. This was offset by lower revenue in Enterprise segment, down by 4.1% year-on-year.
9. The group declared an interim dividend of 6.8 cents per share during the quarter.
10. Chua Sock Koong, Singtel’s group CEO, made the following comments:
“Our industry continued to face various headwinds and intense competition. Notwithstanding these challenges, the half-year results reflect the resilience of our business with continued focus on networks, differentiated content, unique capabilities and innovative plans. We continued to add postpaid mobile customers across both Singapore and Australia and improved our customer retention rate. We affirm our full-year guidance despite a more challenging economic outlook. While ICT [Infocomm Technology] revenue was lower in the first half of the year with the completion of a major infrastructure project last year, our order book is strong and we expect ICT to grow in the second half.”