Singapore: Singapore-based telecom major Singtel reported a 13 per cent increase in its net profit at 942 million Singapore dollars ($669.6m) in the June quarter on account of regional sales growth and one-time gain from sale of Bharti Airtel tower assets in Africa.
The company had posted a net profit of 835m Singapore dollars in the same period a year ago.
“This quarter’s results reflect the strong execution in our business. Across our different markets, we are taking bold strategic measures to shape our business and the market. We are accelerating investments in spectrum, networks and systems, and transforming our cost structure,” Singtel Group chief executive Chua Sock Koong said in a statement.
Singtel, which holds 32.43 per cent stake in Airtel, recorded a net exceptional gain of 47m Singapore dollars with divestment gains from venture investments and Airtel Africa’s tower assets.
“Excluding exceptional items, underlying net profit grew 2pc. This would have grown 5pc on a constant currency basis,” Singtel said.
In this quarter, Singtel recorded its share of Airtel’s net exceptional gain of 32m Singapore dollars from the divestment of telecom tower assets in Uganda, Ghana, Congo Brazzaville and Nigeria, partly offset by various provisions and charges. The exceptional items also comprised a gain on sale of venture investments of 23m Singapore dollars and an impairment charge of 5m Singapore dollars on certain venture investments, it said.
In the corresponding quarter last year, the net exceptional loss comprised mainly 27m Singapore dollars of staff restructuring costs from Optus and the group’s share of Airtel’s exceptional losses of 17m Singapore dollars.
Overall, Airtel contributed 8pc to Singtel’s underlying net profit. This contribution excludes Airtel’s exceptional items in this quarter which comprised mainly a net gain from the divestment of telecom tower assets, Singtel said.
“Despite the weaker Indonesian rupiah and significant fair value losses from Airtel, the group’s share of pre-tax earnings from the regional mobile associates rose 5pc to 625m Singapore dollars,” it added.
The group’s revenue grew by 1.5pc to 4,209m Singapore dollars from 4,148m during the period under review.
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