Business

Friday August 14, 2009

Singtel’s profit down on weak Aussie dollar


SINGAPORE: Singapore Telecommunications, South-East Asia’s biggest telco, reported yesterday a lower-than-expected 10.3% increase in first-quarter underlying net profit, and said it would keep exploring investment opportunities.

SingTel, which owns Optus in Australia and stakes in mobile operators across Asia, has been struggling to grow revenues and earnings in recent years due to slow growth in its core markets and increased competition faced by its mobile affiliates.

“We will explore and monitor investment opportunities and will be disciplined when reviewing these opportunities,” SingTel’s chief executive Chua Sock Koong said in a statement.

“The current operating environment remains a challenge. We will continue to monitor the macro environment and our cost management initiatives,” she added.

The company, around 55%-owned by state investor Temasek, posted April-June underlying net profit before goodwill and exceptionals of S$945mil (US$654.4mil) compared with an average forecast of S$985mil in a Reuters survey of analysts.

The quarterly underlying net profit was 10.3% higher than the year-ago’s revised S$857mil, as revenues rose at a slower pace due to a weaker Australian dollar against the Singapore currency.

SingTel’s first-quarter net attributable profit rose 7.7% to S$945mil from S$878mil. — Reuters


For another perspective from The Straits Times, a partner of Asia News Network, click here.


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