Singapore Telecommunications Limited’s Annual Report: 20 Key Numbers Investors Should Know

Singapore Telecommunications Limited  (SGX: Z74) released its 2016 annual report only a few days ago on Tuesday.

Singaporeans may be familiar with the mobile services the company provides. But there is so much more to learn about Singtel’s sprawling business empire. With that in mind, here are 20 key figures investors should note:

  1. Singtel has a history of 137 years. The telco had its initial public offering (IPO) in 1993 and started to expand overseas. Today, Singtel serves over 600 million mobile customers in 25 countries. Over 70% of its earnings comes from overseas.
  2. Singtel’s stock has outperformed the Straits Times Index (SGX: ^STI) over the last five years. The telco’s total return is 10.3% as compared to the Straits Times Index’s 1.2%.
  3. Singtel’s business can be divided into three main divisions: Group Consumer, Group Enterprise, and Group Digital Life. The Group Consumer division provides the lion’s share of Singtel’s revenue at 60%. Meanwhile, Group Enterprise accounts for 38% while Group Digital Life contributes the remaining 2%.
  4. Singtel is participating in some big markets. The enterprise cloud computing market is expected to grow to US$204 billion in 2016, according to research firm Gartner. Cyber security is another market that is expected to grow. Gartner estimates that the global managed securities industry will grow from US$15 billion in 2015 to US$27 billion in 2019.
  5. The Group Digital Life segment’s revenue is small right now but the markets it is in are not. For instance, global digital ad spending is expected to touch US$301 billion by 2020. Elsewhere, online video streaming is gaining popularity. Singtel expects Asia (ex-China) to have 100 million paying video users by 2020, thereby creating a S$1 billion online video streaming market. HOOQ, Singtel’s mobile streaming service, offers more than 35,000 hours of content.
  6. As of 31 March 2016, Singtel has S$9.14 billion in net debt. This is a 15% increase compared to the year before. Free cash flow also fell 23% year-on-year to S$2.7 billion. Investors might want to note that 50% of management’s restricted share awards is dependent on Singtel’s free cash flow performance from 1 April 2016 to 31 March 2018.

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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 company mentioned.