Singapore Stock Market News

SingTel - Clinches spectrum from auction

StockFanatic
Publish date: Wed, 08 May 2013, 03:38 PM
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Optus has secured 2x10MHz spectrum at the 700MHz band and 2x20MHz at the 2.5GHz level for a price of A$649m, close to the reserve price. However, this sum is below our assumption of A$800m as we expected Optus to buy 2x15MHz in the 700MHz band.

However, the payment will be pushed to FY15 from FY14. We maintain our Underperform on the stock with earnings disappointment a likely de-rating catalyst. Our earnings forecasts are 3-4% below consensus. We make no changes to our forecasts and SOP-based target price pending its FY13 results on 15 May.
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