Singapore Telecommunications (Singtel) has reported earnings of $1.3 billion for its 3QFY2025 ended Dec 31, 2024, a surge of 183.4% y-o-y, led largely by exceptional gains from partial divestment of stakes in regional associates.
In contrast, there was an exceptional loss in the year-earlier quarter — as the telco provided for costs following a network outage in Australia.
In total, the telco booked post-tax exceptional gains of $639 million for its three months ended Dec 31, 2024, versus a corresponding exceptional loss of $94 million in the year-earlier quarter.
That aside, the telco enjoyed a strong improvement in its underlying net profit, which was up 22% y-o-y to $680 million, thanks to improvements at Optus, its Australia subsidiary; its enterprise services unit NCS, as well as higher contributions from associates Airtel and AIS.
Singtel's revenue in the same 3QFY2025 was largely steady, up 1% y-o-y to $3.63 billion.
The company had previously guided for ebit for the FY ending March 2025 to be in the "low double digits" range. It has raised its guidance to "high teens to low twenties".
It is also guiding for a higher dividend payout of 16.5 cents for FY2025, versus 15 cents per share paid in the preceding financial year.
Singtel's group CEO Yuen Kuan Moon calls his 3QFY2025 report card a "solid" set of numbers as the telco's "focused execution and operating discipline" helped drive sustained growth momentum across the business.
"Optus and NCS maintained strong performances, and our regional associates Airtel and AIS delivered higher contributions," he says.
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Yuen adds that Singtel, which is gaining investors' favour in the past year because of its active capital management efforts underpinned by operational improvements, is making "good progress" on its growth and "sustained value realisation".
"Despite an uncertain macroeconomic environment, we remain optimistic about Asia’s long-term growth potential and continue to see strong demand for digitalisation and the digital infrastructure that underpins it," says Yuen.
"We will stay focused on lifting business performance by capturing growth opportunities in artificial intelligence, data centres, and global connectivity,” he adds.
Singtel shares closed at $3.33 on Feb 18, up 0.3% for the day but up 40.51% over the past 12 months.
