EBITDA and EBIT also increased 3% and 8% respectively, thanks to better margins with costs held down.
As a result, underlying net profit was 7% higher at S$2.05 billion, and would have risen 11% on a constant currency basis.
For second half ended March, earnings was up 6.1% y-o-y to $1.06 billion, while revenue was down 4.2% to $7.37 billion.
Singtel plans to pay a final ordinary dividend of 5.3 cents per share. Including the interim dividend of 4.6 cents per share, the total ordinary dividends would be 9.9 cents per share, representing a payout ratio of 80% of underlying net profit.
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Together with the two-tranche dividend of 5.0 cents per share from its asset recycling initiatives announced during the half-year results, this brings total dividend for FY2023 to 14.9 cents, up 60%, giving a yield of 5.8%.
Singtel reiterates its commitment to pay ordinary dividends at between 60% and 80% of underlying net profit.
“Our solid financial performance in the second year of our strategic reset reflects the tangible progress we have made against our business priorities in spite of the uncertain macroeconomic environment,” says group CEO Yuen Kuan Moon.
“Our capital recycling programme continued to unlock value this year with more than S$2.8 billion raised largely from Airtel, allowing us to strengthen our balance sheet and deliver greater returns for shareholders,” he adds.
During the year, Singtel’s regional associates increased their pre-tax profit contributions by 10% to $2.27 billion despite generally unfavourable forex movements caused by the stronger Singdollar.
If forex was discounted, the improvement would have been 15%, with India’s Airtel driving a big part of the growth as its business recovers.
“Our regional associates have also benefitted from the rebound in mobile services post-COVID, and Airtel delivered yet another year of solid growth,” says Yuen.
Going forward, Singtel expects the healthy recovery to continue as economies reopen and international travel resumes.
“However, the group is mindful of the uncertain macroeconomic environment with elevated inflation and high interest rates.”
