Singtel Q4 profit down 19% to S$781m

SINGTEL on Thursday posted a 19 per cent fall in net profit to S$781 million for its fourth quarter ended March 31, 2018, down from S$963 million a year ago.

Revenue grew 2.8 per cent to S$4.326 billion this year from S$4.308 billion in the previous year. Earnings per share were 4.78 Singapore cents, compared to 5.90 cents last year.

Singtel said that the group's results for the quarter were adversely impacted by negative currency movements, lower NBN migration revenues resulting from temporary suspension of connecting and migrating customers to the NBN's (National Broadband Network) HFC (Hybrid Fiber Coax) access network in Australia, as well as lower associates' contributions mainly from Telkomsel, Airtel and NetLink NBN Trust.

For the full year (FY2018), the group's revenue grew by nearly 5 per cent to S$17.53 billion, up from S$16.7 billion a year ago, while net profit rose by 41.5 per cent to S$5.45 billion, up from S$3.85 billion in the previous year. Earnings per share came up to 33.4 Singapore cents, versus 23.96 cents last year.

Free cash flow for the full year rose 18 per cent to S$3.61 billion, and for the quarter, grew 5 per cent to S$800 million.

Singtel group chief Chua Sock Koong said: "These results reflect the strong execution of our digital transformation strategy in both our core and new digital businesses. Optus gained market share in Australia underscoring its network and content strategy while our ICT and digital businesses now account for 24 per cent of revenue, with digital marketing arm Amobee achieving growth and positive Ebitda (earnings before interest, taxes, depreciation and amortisation) for the year."

Singtel has proposed a final ordinary dividend per share of 10.7 Singapore cents, bringing the total ordinary dividend per share for the year to 17.5 Singapore cents, representing a payout of about S$2.86 billion.

Singtel said: "Barring unforeseen circumstances, the group expects to maintain its ordinary dividends of 17.5 Singapore cents per share for the next two financial years and thereafter, will revert to the payout of between 60 per cent and 75 per cent of underlying net profit."