4 Quick Things Investors Should Learn About Singapore Telecommunications Limited

Singapore Telecommunications Limited (SGX: Z74) is one of the cool companies in Singapore that shares webcasts and/or transcripts of their quarterly earnings presentations (the link for Singtel’s latest earnings transcript is here).

As the biggest of the trio of telecommunication services providers in Singapore – with the others being M1 Ltd (SGX: B2F) and StarHub Ltd (SGX: CC3)  – Singtel makes its money from its major business segments of Group Consumer, Group Enterprise, and Group Digital Life.

You can read more about Singtel in here.

What’s up, doc?

Below are four useful things I learned from reading the transcript of Singtel’s fiscal first-quarter earnings conference call for the financial year ending 31 March 2016 (FY2016):

  1. Chief Executive Officer (Consumer Australia) Allen Lew felt that the strength of Optus (Singtel’s Australian subsidiary) lies in its ability to bundle video services – for example Netflix Inc – and broadband with mobile. In Lew’s view, this helps Optus compete not just on price and data allowance alone. Optus’ mobile 4G offering also covers 90% of the population in Australia.
  2. Bring your own device (BYOD) plans appear to be picking up interest in both Australia and Singapore. For the Singapore mobile space, Chief Executive Officer (Consumer Singapore) Yuen Kuan Moon commented that the mobile virtual network operator (MVNO) offering by Liberty Wireless and M1 is not new to the industry and actually addresses a different market. Singtel intends to respond to it.
  3. Yuen also talked about HOOQ, Singtel’s mobile video service that’s targeted for emerging markets where getting fixed access to homes is uncommon. Chief Executive Officer (Group Digital Life) Samba Natarajan added that HOOQ had been launched in the Philippines in April, Thailand in May, and India earlier this month. HOOQ is also bundled with the services that are provided by Singtel’s associates like Globe in the Philippines, AIS in Thailand, and Airtel in India. Natarajan added that the take-up has been “encouraging”.
  4. In contrast to HOOQ, mobile TV services in Singapore are more like a companion. To this point, Yuen highlighted the 100,000 active user base for TVGo and its growing suite of content.

Foolish takeaway

To buy and hold a company’s shares for the long-term also means the need to keep up with developments in the firm.

The access to management teams via webcasts and transcripts gives the Foolish investor a fair chance to judge for themselves whether they would like to be invested alongside those teams. It also helps us put together a more complete thesis around a company and keep up with developments in its industry.

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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 owns shares in Netflix Inc.