Singtel reported its 3QFY16 results this morning, which came in within our expectations. Revenue inched up 1.1% YoY to S$4474m, or about 2% above our forecast; but was up 6.2% in constant currency terms as the AUD has fallen 8% against the SGD. Reported net profit slipped 1.7% to S$954m, while underlying profit eased 1.5% to S$955m, or about 2% above our estimate.

9MFY16 revenue was flat at S$12867m, meeting 73% of our FY16 forecast, while reported net profit grew 2.9% to S$2925m; underlying was flat at S$2824m, but also met 73% of our fullyear estimate. As expected, Singtel has affirmed its previous guidance for FY16 – core business revenue to grow by mid-single digit level and EBITDA to grow at low single digit level.

We will have more after the analyst briefing later. For now, we maintain our BUY rating on the stock but place our SOTP-based fair value of S$4.17 under review (likely to shade lower due to the lower share prices of its listed associates).

Source: OCBC Research - 12 Feb 2016