Singtel Group has reported a 44% slump in net profit for the financial year ending in March, partly as a result of lower contributions from the group’s regional mobile associates.
Net profit declined to S$3.10 billion ($2.26 billion), despite revenue remaining stable at S$17.37 billion, and growing 4% in constant currency terms.
But the bottom line was impacted by an exceptional gain last year arising from the divestment of a 75% stake in NetLink Trust – the company established by Singtel to deploy Singapore’s national broadband network.
Losses at Indian mobile associate Airtel, a lower contribution from Indonesia’s Telkomsel, and the erosion of revenue from carriage services also contributed to the decline.
During the fourth quarter, Singtel’s wholly-owned Australian subsidiary Optus reported a 10% increase in revenue, while Singtel’s domestic Singapore business reported 1% higher revenue and 5% higher ebitda.
“We have executed well to our strategy amid tougher industry, business and economic conditions. The fundamentals of our core business remained strong,” Singtel Group CEO Chua Sock Koong said.
“We gained market share in mobile across both Singapore and Australia led by our product innovations, content and services that were well-received by customers. Our digital businesses Amobee and Trustwave continued to deepen their capabilities and to scale. Looking ahead, we will accelerate our digitalization efforts to drive better customer experience and improve productivity and cost structure by transforming our processes.”