Singtel Posts Record Q2 Profit Despite Bharti Airtel Profit Plunge

11/9/2017 2:35:11 PM
written By : Team India Se Print

Singtel delivered a second quarter net profit of $2.9 billion for the three months ended September, compared with $972 million a year ago, despite being hurt by lower profits  at its Indian associate, Bharti Airtel Ltd.

Southeast Asia’s largest telecom operator said in a press release on Nov 9: “Singtel delivered a second quarter net profit of $2.9 billion, boosted by gains from the divestment of 75.2 per cent of its stake in NetLink Trust in July this year.

“Operating revenue for the quarter increased 7 per cent to $4.37 billion. This included revenue contributions from digital marketing company Turn which was acquired in April this year.

“EBITDA rose 5 per cent, reflecting the strong performance of the group’s core business bolstered by higher postpaid mobile and fixed broadband customer numbers in Australia.

“Underlying net profit for the quarter slid 4 per cent, impacted by Airtel, which continues to face intense price competition in India. Excluding Airtel, underlying net profit would have risen 3 per cent,” Singtel said.

In October, Bharti Airtel, India’s largest phone carrier, reported its smallest quarterly profit in nearly five years amid a price war.

Singtel said: “The regional associates continued to drive customer growth and higher data consumption. However, intense competition in India, coupled with higher depreciation and amortisation, led to a 7 per cent decline in pre-tax operating profit contributions. Airtel’s lower earnings in India were partially offset by improved operational performance in Africa.”

Bharti Airtel announced in October it was acquiring Tata’s mobile business, Tata Teleservices.

This was welcomed by Singtel, which said the merger would “bolster” Airtel’s “market lleadership and spectrum holdings”. Singtel Group CEO Chua Sock Koong said: “Airtel’s merger with Tata Teleservices in India will create significant synergies and this consolidation will also prove healthier for the Indian telecoms industry in the long term.”

 

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