Singapore Telecommunications reported a 6.6 percent fall in first-quarter profit, in part due to fierce competition in some of its markets and as a strong Singapore dollar crimped earnings from affiliates. Singtel, Southeast Asia's largest telecom operator, posted a net profit of S$832 million ($610.5 million) for the three months ended in June, compared with S$890 million a year ago. Underlying net profit, which excludes one-time items, fell more than 19 percent to S$733 million. Revenue fell 0.5 percent to S$4.13 billion.
Competition affected India's Bharti Airtel and Indonesia's PT Telekomunikasi Selular, in which Singtel owns stakes, leading to a decline in its regional associates' overall profits. Singtel is also set to face fresh competition at home with the expected arrival of a new entrant later this year. As demand for traditional carrier services fades, the company has been looking for growth in areas such as digital marketing, cybersecurity, mobile payments and video streaming.
The company's options to unlock value from its digital businesses, which include its digital marketing arm Amobee, could come in the form of their full or partial listing or bringing in a partner to take stake in particular entities.
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