Singtel Reports 14% Profit Increase, Driven by Regional Growth

Singapore Telecommunications (Singtel) announced a 14 percent increase in its underlying profit for the first half of the financial year, reflecting strong contributions from its Australian subsidiary, Optus, and other regional partners. The telecom giant reported an underlying net profit of S$1.35 billion (approximately US$1.04 billion) for the six months ending on September 30, 2023. This figure marks a rise from S$1.19 billion recorded in the same period last year, although it fell slightly short of the consensus estimate of S$1.37 billion by Visible Alpha.

In a statement released on November 12, 2023, Singtel attributed the profit growth largely to its regional associates, including Airtel and AIS, alongside its operating companies, NCS and Optus. The diversified portfolio has positioned Singtel to navigate the challenges posed by the current macroeconomic environment.

Positive Momentum Amid Challenges

Singtel Group’s Chief Executive Officer, Yuen Kuan Moon, commented on the results, stating that they reflect “the positive momentum across our diversified portfolio of businesses across the region.” He acknowledged the ongoing uncertainties facing the Optus business and the broader economic landscape but emphasized that the company’s geographic diversity helps stabilize overall performance.

Singtel’s performance highlights the resilience of telecommunications in Southeast Asia, particularly in markets where consumer demand remains robust. The company’s strategic focus on regional partnerships has proven beneficial, as illustrated by the strong performances of its associates and subsidiaries.

As Singtel continues to adapt to market conditions, investors and analysts will be closely monitoring how the company’s strategies evolve, especially in light of the challenges mentioned by its leadership. The ability to maintain growth while navigating uncertainties will be crucial for Singtel’s future prospects in the competitive telecom industry.