Singapore Telecom 02 (Feb 12 - Dec 24)

[behappyalways]

Singtel's Optus completes acquisition of Australia’s largest MVNO for A$250 mil
https://www.theedgesingapore.com/news/t ... o-a250-mil

[behappyalways]

Singtel reports EBIT of $328 mil and EBITDA of $1 bil in 3Q business update; consumer down, enterprise steady
https://www.theedgesingapore.com/news/r ... sumer-down

[winston]

not vested

Singtel (ST SP) - Clocking sequential improvement

Singtel’s 3QFY21 operating revenue fell 3% YoY to SGD4.2b but increased 9% QoQ;

Excluding NBN migration revenue, operating revenue, EBITDA and EBIT increased 10%, 3% and 10% respectively QoQ, largely due to Australia Consumer and Amobee.

Singapore Consumer operating revenue fell 11% YoY (though up 8% QoQ), with border restrictions impacting usage of roaming and prepaid services.

Group Enterprise revenue remained resilient despite disruptions and a challenging macro environment.

Post-tax associate contributions rose 8% (or 11% in constant currency) – this came on the back of Airtel’s improved operating performance which was lifted by higher mobile ARPU and strong 4G additions in India.

All considered, we believe Singtel continues to remain a viable option to play the reopening of regional economies, with the return of the travel market likely to give a boost to its mobile operations, especially in Singapore.

Potential asset monetization would be another catalyst. In the more medium-term, we would also look forward to potential mobile ARPU accretion from the migration to 5G. BUY.

Source: OCBC

[behappyalways]

Singtel expects to include net exceptional losses of $839 mil and $1.21 bil for 2H21 and FY21
https://www.theedgesingapore.com/news/r ... 1-and-fy21

[behappyalways]

Singtel reports 49% lower earnings for FY21, announces new strategic direction
https://www.theedgesingapore.com/news/r ... -direction

[winston]

not vested

Singtel (ST SP) - Hitting the reset button

Singtel’s 2HFY21 operating revenue was down 0.7% YoY to SGD8.2b while EBITDA fell 12.2% YoY.

The Singapore consumer market saw roaming and prepaid services impacted from the ongoing travel restrictions, while Australia saw a decline in NBN migration revenue and lower retail fixed margins due to a higher mix of low margin NBN customers.

FY21’s underlying net profit of SGD1.7b missed ours and consensus expectations, while 2HFY21 DPS was significantly lower at 2.4 S-cents, bringing full-year DPS to 7.5 S-cents.

Management highlighted a number of key strategic initiatives moving forward, and we are encouraged by their focus on increasing ROIC from mid-signal-digit levels to low-to-mid-teens over the longer term.

We believe that management straddles a delicate balance between delivering yield while at the same time growing and delivering on the various strategies.

The group will adopt a dividend policy of distributing between 60% - 80% of underlying net profit, and is guiding for sustainable dividends in-line with earnings and cashflow generation.

Singtel continues to institute strong ESG policies to address potential risks related to labor management complexity, cyber-security, ethics, and human rights.

Singtel scores well on a number of key issues relative to the industry average, and we thus assign a 10% premium; following adjustments, our FV rises slightly from SGD2.85 to SGD2.89. BUY.

Source: OCBC

[winston]

not vested

Singtel (ST SP) - Broad-based improvement

Singtel provided an encouraging 1QFY22 business update.

The group’s revenue for the quarter grew 8% YoY to SGD3.8b, or up 9% on an underlying basis excluding Optus’ NBN migration revenues.

This came off the back of broad-based growth across the various business segments including Singapore Consumer, Australia Consumer, Group Enterprise, NCS, Trustwave and Amobee.

EBITDA for the quarter rose 11% YoY to SGD997m due to the improvement registered in Australia, or 31% on an underlying basis excluding Optus’ NBN migration and Jobs Support Scheme (JSS) credits from the Singapore government.

Singtel’s share of regional associates’ post-tax contributions rose 37% YoY to SGD366m (or +41% in constant currency), largely due to the turnaround in Airtel’s results from the net loss clocked in 1QFY21 due to the strong mobile growth in India driven by customer growth and 4G upgrade.

Consequent to the strong operating performance from Australia Consumer and net profit contribution from Airtel, Singtel’s underlying net profit rose 31% YoY (or 33% YoY in constant currency terms) to SGD451m.

We believe that time will still be needed for management to execute the various key strategic initiatives that were highlighted last quarter, and we remain particularly encouraged by management’s focus on increasing ROIC from mid-single-digit levels to low-to-mid-teens over the longer term.

Singtel remains on track with its plans to divest up to 70% of Optus tower assets by 2H 2021, which we believe could be a potential near-term catalyst.

We retain our FV of SGD2.89 for now, having previously assigned an ESG premium as Singtel has scored well on a number of key issues relative to the industry average. BUY.

Source: OCBC

[behappyalways]

Singtel sees turnaround in 1Q22 net profit of $445 mil from previous year's net loss
https://www.theedgesingapore.com/capita ... s-net-loss

[behappyalways]

Singtel divests 70% stake in Australia Tower Network for $1.9 bil; to expand data centre business regionally
https://www.theedgesingapore.com/news/t ... ata-centre

[behappyalways]

Singtel's Trustwave divests payment card compliance business for $107.8 mil
https://www.theedgesingapore.com/news/t ... s-1078-mil