SingTel posted 2QFY15 revenue of S$4309.4m, +3.5% YoY and 3.9% QoQ, aided by first-time contributions from the digital acquisitions – Adconion and Kontera; excluding these two, revenue growth would have been 2.5% YoY. Reported net profit jumped 19.3% YoY and 24.4% QoQ to S$1038.3m, boosted by an exceptional gain of S$62.2m; excluding it, underlying net profit would have risen 10.7% YoY (+11.1% QoQ) to S$979.0m. 1HFY15 revenue though was flat at S$8457m, meeting 50% of our FY15 forecast, while reported net profit slipped 0.5% to S$1873m; underlying profit grew 4.4% to S$1860m, also 50% of our full-year estimate.

SingTel declared an interim dividend of S$0.068/share, unchanged from a year ago. SingTel has kept its guidance for FY15 largely unchanged, except that it now expects a wider negative EBITDA versus 20% narrower previously. We will have more after the analyst teleconference later. For now, we keep our BUY rating but our SOTP-based fair value of S$4.08 is under review.

Source: OCBC Research - 13 Nov 2014