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

Earlier in June, Singapore Telecommunications Limited (SGX: Z74) released its annual report for the fiscal year ended 31 March 2017 (FY2017).

Singaporeans may be familiar with its mobile service. However, there is much more to learn about Singtel’s global business. With that in mind, here are 20 quick figures investors should know:

  1. Singtel has a history dating back 138 years. The telco filed for its initial public offering (IPO) in 1993. Singtel started to expand overseas as part of its IPO. Today, Singtel serves over 638 million mobile customers in 22 countries. Around 70% of its net profit comes from overseas.
  2. Singapore contributed 30% of Singtel’s net profit for FY2017. Australia pitched in 22%, but the largest contribution comes from regional associates at 48% of net profits.
  3. Singtel’s business can be divided into three main pieces: Group Consumer, Group Enterprise and the Group Digital Life. The Group Consumer segment provides the lion’s share of revenue with 57.3% of Singtel’s top line. Group Enterprise accounts for 39.5% of sales while Group Digital Life contributed the remaining 3.2%.
  4. The segment contribution is different from earnings before interest, taxes, depreciation and amortization (EBITDA) perspective. Group Consumer and Group Enterprise pitch in 66% and 38% of EBITDA respectively. Group Digital Life is still loss-making, therefore making a negative contribution of 2.4%.
  5. Investors might have their eyes on Singtel’s dividends, and dividends are best funded by free cash flow. For FY2017, Singtel generated $3.05 billion in free cash flow, up 12.5% compared to a year ago. The telco paid out $2.82 billion in dividends for the same period.
  6. Speaking of free cash flow, investors should note that 50% of the management’s restricted share award (RSA) is dependent on the free cash flow performance over two years from 1 April 2017 to 31 March 2019. The other 50% is based on the group’s net profit after tax.
  7. Singtel’s share price has outperformed the Straits Times Index (SGX: ^STI) over the last five years. The telco has posted a total shareholder return of 9.4%. STI produced a 4.4% return over the same timeframe.

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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.