Singtel net profit down 10%! | Investment Moats Skip to Content

Singtel net profit down 10%!

Singtel today released its 3rd quarter results and it looks weak due to a few factors.

  1. Overall profit is down 10%. I can’t recall the last time I see such an impact to Singtel. I must have not been tracking it for sometime.
  2. EBITDA for Singapore down 7%
  3. EBITDA for Opus up 2%
  4. Regional Telcos earnings down 8%
  5. Singapore post paid mobile customers have been increasing but ARPU have fallen
  6. Retention costs and acquisition costs have risen 22%
  7. Optus post paid mobile customers have increase but ARPU have fallen as well
  8. Retention costs and acquisition costs have fallen 13% quarter on quarter
  9. AIS have been the gem in which profit rose 23%
  10. Bharti have been the problem. Profit down 30%
  11. Net debt have risen drastically 4546 mil to 7416 mil
  12. Free cash flow is at 844 mil

Overall, this is rather disappointing result which puts it in the number 3 position in profits reported this quarter. By no means will dividend payment capability be affected. But this goes to show how intense the competition is. Compare M1 and Starhub which have been able to defend their ARPU, Singtel suffered in a reduction in Singapore ARPU and a high customer retention cost.

Take aways from this result is whether Singtel, will continue to see a problem keeping that ARPU or even expanding it.

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