SingTel's Profit Falls on Weaker Associates' Earnings

By Gaurav Raghuvanshi Features Dow Jones Newswires

Singapore Telecommunications Ltd. (Z74.SG) Friday reported a 5.6% on-year decline in its fiscal first-quarter net profit, mainly due to lower contribution from its regional associates and one-time charges at its Australian unit.

Continue Reading Below

Net profit in the April-to-June quarter was 891.6 million Singapore dollars (US$653.7 million), compared with S$944.3 million in the same period of last year. Revenue rose to S$4.23 billion from S$3.91 billion, SingTel, the biggest telecommunications company in Southeast Asia, said in a regulatory filing.

SingTel's share of earnings from its regional associates fell 3.8% on year to S$673 million, mainly due to weaker contribution from its Indian associate Bharti Airtel Ltd. (532454.BY), which faces intense competition in its local market.

SingTel also accounted for a S$18 million exceptional loss in the quarter after its Australian unit Optus Pte. restructured its workforce.

Optus reported a net profit of 171 million Australian dollars (US$134.4 million) in the quarter, down slightly from A$173 million last year. Revenue rose 4.8% to A$2.1 billion.

Write to Gaurav Raghuvanshi at gaurav.raghuvanshi@wsj.com

Continue Reading Below

(END) Dow Jones Newswires

August 10, 2017 19:23 ET (23:23 GMT)