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10 Quick Things That Investors Should Know About Singapore Telecommunications Limited Latest Earnings Report

Last week, Singapore Telecommunications Limited (SGX: Z74) or Singtel, released its first quarter results for the financial year ending 31 March 2019 (FY2019) earnings update. As a quick introduction, Singtel is one of the three main telecoms in Singapore. The other two are M1 Ltd (SGX: B2F) and StarHub Ltd (SGX: CC3). Singtel has three main business unit: Consumer, Enterprise and Digital Life.

Here are 10 quick things from Singtel’s latest earnings report that investors should know:

1. Revenue was down 0.5% year-on-year to S$4.1 billion.

2. EBITDA (earnings before interest tax depreciation and amortisation) for the quarter declined 2.7% year-on-year to S$ 1.2 billion.

3. EBITDA margin was narrowed from 29.8% in the corresponding period last year to 29.2%.

4. The share of associates’ pre-tax earnings was down 42.0% year-on-year to S$391 million.

5. Similarly, net profit declined 6.6% year-on-year to S$832 million. Excluding exceptional items, underlying net profit declined 19.3% year-on-year to S$ 733 million.

6. Despite lower net profit, free cash flow came in higher at S$1.47 billion, up 13.3% as compared to the same period last year.

7. As of 30 June 2018, net debt stood at S$ 8.5 billion while gearing was 21.8%.

8. In the latest quarter, its Consumer segment revenue was up by 1.9% year-on-year. This increase was offset by lower revenue in its Enterprise and Digital Life segments, which were down 3.2% and 5.4%, respectively, as compared to the same period last year.

9. No dividend was declared in the latest quarter.

10. Ms Chua Sock Koong, SingTel’s group CEO, made the following comment:

“This quarter’s results reflect the resilience of our core business against intense competition and increasing business headwinds. The Group continued to record data growth and Optus made gains in both the consumer and enterprise markets, bolstered by our quality networks, differentiated content and comprehensive ICT capabilities. Our overall focus on digitalisation and automation has also improved customer engagement and delivered productivity gains and cost savings.

We start the year with 23% of Group revenue from ICT and digital businesses and we expect contributions from these businesses to rise further as we continue to build capabilities in these new growth areas. Our digital marketing arm Amobee recently acquired the assets of Videology, an ad-tech platform provider for advanced TV and video advertising.”

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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 Lawrence Nga doesn’t own shares in any companies mentioned.