Singapore telecom giant reports 0.8 pct drop in net profit in Q2

Singapore Telecommunications Limited (Singtel), Southeast Asia's largest telecommunications operator, said Thursday its net profit dropped 0.8 percent to 1.03 billion Singapore dollars (726.8 million U.S. dollars) for the second quarter of the current financial year.

Singtel's group operating revenue declined 2.9 percent to 4.18 billion Singapore dollars in the second quarter, while its earnings before interest, tax, depreciation and amortization (EBITDA) also posted a decrease of 3.3 percent to 1.29 billion Singapore dollars.

The company attributed the drop to "significant currency headwinds," such as the 13 percent decline in the Australian dollar. In constant currency terms, both operating revenue and EBITDA grew by 5 percent, said Singtel.

Singtel Group CEO Chua Sock Koong said the underlying performance of Singtel is resilient while currency weakness has affected the reported numbers.

"This quarter, we have again strengthened our position across Singapore, Australia and the associates' markets. Mobile data growth continues to be a key focus. Our investments in 3G and 4G network infrastructure and spectrum, alongside increasing smartphone penetration, are delivering improved experiences for customers." Chua said.

The board approved an interim dividend of 6.8 Singapore cents per share, representing a payout ratio of 58 percent of underlying net profit for the half-year ended Sept. 30 this year. Enditem