5 Things Investors May Not Know About Singapore Telecommunications Limited, But Ought To

Singapore Telecommunications Limited (SGX: Z74) is Singapore’s largest telecommunications company. Given its business, which touches the daily lives of millions who live in Singapore, it’s likely one of the most well-known companies here.

But, there are still plenty of interesting things about Singtel’s business which some investors may not know about. These could also be important information as it could help investors form a better picture of the overall health of Singtel’s business.

So, let’s get going!

1. Singtel gets most of its profit from overseas!

Though the company’s name is Singapore Telecommunications, the company actually sourced less than 30% of its net profit in its fiscal year ended 31 March 2016 (FY2016) from Singapore. Here’s a chart that illustrates the situation:

Source: Singtel FY2016 annual report

As you can see, Australia is nearly as important as Singapore. Meanwhile, the company’s regional mobile associates are operating in many countries in Asia, such as Indonesia, Thailand, Philippines, and India. One of the mobile associates even has business interests in 16 countries in the African continent.

2. Singtel’s total customer base is over 100 times the population of Singapore

The latest data from the authorities show that Singapore has a total population of 5.535 million. Singtel’s total mobile customer base as of 31 March 2016 (including those from its regional mobile associates), number over 600 million, which is 108 times Singapore’s population.

3. Singtel has many “Firsts”

The table below shows the market position of Singtel’s various mobile businesses:

Source: Singtel FY2016 annual report

You can see that many of the company’s regional mobile associates hold No.1 market positions in their respective home markets. In 2008 and 2012, Singtel also became the first telco in Singapore to launch a 3G and 4G service, respectively.

4. Singtel has a good track record in corporate governance

In Singtel’s FY2016 annual report, the company mentioned that it was ranked No.1 in the ASEAN Corporate Governance Scorecard 2015 and the Governance and Transparency Index 2015.

5. Lastly, Singtel’s really old – older than Singapore

Singapore is merely 51 years old. Singtel, on the other hand, has a grand total of 137 years of operating experience.

 If you like what you've seen, you can get even more investing insights and analyses from The Motley Fool's weekly investing newsletter Take Stock Singapore. It's FREE, so do check it out here.

Also, like us on Facebook to follow our latest news and articles. The Motley Fool's purpose is to help the world invest, better.

The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.