In 1Q18, core earnings fell 3.5% y-o-y from the combination of seasonal factors and weaker associate contributions – specifically India’s Airtel – alongside the 3% sequential weakness in the AUD/SGD.
See: Singtel reports 5.6% lower 1Q earnings of $891.6 mil on lower contributions from associates and exceptional charges
In fact, associate contributions fell for the second consecutive quarter at 2.6% y-o-y. Stripping out India, core earnings would have grown 3% y-o-y and were stable on constant currency terms. Operating revenue grew a strong 8.3% y-o-y, supported by the maiden contribution from Turn Inc – its latest adjacent acquisition, while EBITDA was up 2.7% y-o-y from ongoing cost management initiatives.
Mobile communications revenue narrowed 1% q-o-q on seasonality, with the continuing weak usage and roaming revenues leading the 3.6% y-o-y erosion. This was notwithstanding the stronger mobile data growth.
Group Digital Life revenue more than doubled y-o-y to $273 million with the acquisition of Turn Inc, while Group Digital Life EBITDA losses narrowed q-o-q to $24 million as Amobee – including Turn – achieved EBITDA breakeven.
As at 12.30pm, shares in Singtel are up 1 cent at $3.77.
