SingTel announced third quarter earnings this morning. The group’s earnings before interest, tax, depreciation and amortization (EBITDA) remained relatively stable, reflecting the “resilience of the Group’s operations despite weaker foreign currencies”.  However, net profit was 8% lower due to an increase in expenses.

Singapore
The group’s revenue fell 4.8% but Singapore was a bright spot, bringing in a 1.3% increase in revenue. The total customer base in the country now stands at 3.76 million, representing a leading market share of 46.6% (31 Dec 2012). The main business units in Singapore are:

• Mobile communications – revenue grew 3% with an addition of 50,000 postpaid and 13,000 prepaid mobile customers in the quarter.
• Data and internet – revenue was stable at S$409 million.
• Mio TV – revenue grew 18% to S$33 million and its customer base reached 398,000 as of 31 December 2012. It recently crossed the 400,000 milestone

Australia
SingTel’s associate Optus reported a 6% decline in revenue and the main business units in Australia are:

• Mobile – lower operating revenue but increase in EBITDA due to lower traffic costs resulting from the mandated decline in mobile termination rates
• Business and wholesale fixed – EBITDA fell 2% on lower revenues, which was mainly attributed by voice and Data and IP revenues.
• Consumer and SMB fixed business – EBITDA increased 5% on lower traffic costs driven by lower mobile termination rates and lower operating expenses

CEO’s statement and outlook
SingTel Group CEO, Ms Chua Sock Koong said that “the performance of the Group demonstrates the resilience of the company’s core operations and focused execution even as they recognise the challenges in the various markets.”

Going forward, SingTel will “explore opportunities in the mobile data and enterprise ICT services. The Group is focused on driving growth in mobile data services with continued investment in its infrastructure, attractive tiered data plans and meeting customer demand for higher speeds and better user experience”.

Source: Macquarie Research - 14 Feb 2013