Singapore Telecommunications Limited (SGX: Z74) – or more popularly know as Singtel – is one of the cool companies which shares webcasts for its quarterly earnings presentations (the link is here). As one of the big trio in the telecommunications industry – the others being M1 Ltd (SGX: B2F) and StarHub Ltd (SGX: CC3) – Singtel makes its money from its major segments of Group Consumer, Group Enterprise, and Group Digital Life. You can read more about Singtel here. What’s the story, morning glory? Below are five useful (additional) things I learned from listening to Singtel’s fourth quarter webcast: Subscriber acquisition cost for the Group Consumer segment…
As one of the big trio in the telecommunications industry – the others being M1 Ltd (SGX: B2F) and StarHub Ltd (SGX: CC3) – Singtel makes its money from its major segments of Group Consumer, Group Enterprise, and Group Digital Life.
You can read more about Singtel here.
What’s the story, morning glory?
Below are five useful (additional) things I learned from listening to Singtel’s fourth quarter webcast:
- Subscriber acquisition cost for the Group Consumer segment rose due to seasonality and the launch of two separate models for the iPhone 6. This trend is similar to what is happening at M1 and Starhub.
- On the Group Digital Life segment, Singtel will be looking to roll out its HOOQ service – a regional over-the-top video service partnership with Sony Pictures Entertainment and Warner Bros. Entertainment – to several markets next quarter. On the HOOQ expansion, Singtel pointed towards its customer base (in telco) of over half a billion customers and more than 50 million smartphones. Singtel also has billing capability in its targeted markets and will be looking at bringing in Hollywood and local content at “an affordable price.”
- On an additional note on the Group Digital Life segment, Singtel also sounded its commitment to “move the metabolic rate” of the digital industry that it is in and is measuring progress based on future cash flows and metrics of the businesses within the segment. In other words, we shouldn’t expect profits anytime soon from this business segment. Chief Financial Officer Jeann Low also reminded analysts of the S$2 billion set aside (first guided in May 2013) for future acquisitions in the digital segment.
- On the Australian market, Singtel had noted the low Pay TV penetration rate and relatively slower broadband speeds. This was the impetus for offering a bundled package with Pay TV and unlimited broadband which has done well.
- Lastly, on the Group Enterprise segment, the decline in margins for the segment was driven by a higher mix of Information and Communications Technology (ICT) services and higher manpower services.
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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chin Hui Leong doesn’t own shares in any companies mentioned.