Singtel reports nearly twofold rise in half-year net profit to S$3.4 billion

SINGAPORE: Singtel has reported a sharp rise in net profit for the first half of the year, with earnings nearly doubling to about S$3.4 billion.

In its announcement of interim results for the six months ended 30 September, the group said net profit surged by approximately 176%, largely due to a net special gain of S$2.05 billion. This gain was mainly attributed to the sale of part of its stake in Indian regional associate Airtel in May, and the merger of its Thai-listed subsidiary, Intouch Holdings, with Gulf Energy Development, a major power company in Thailand.

Excluding these special items, Singtel’s underlying net profit for the first half stood at around S$1.35 billion, marking a 14% increase compared to the same period last year. The company said the improvement was driven by strong performances from Airtel, its Thai affiliate AIS, its IT services arm NCS, and Australian operator Optus.

Despite the strong profit figures, Singtel’s operating revenue declined by about 1.2% year on year to S$6.91 billion, as the stronger Singapore dollar weighed on overseas earnings.

The Group’s Board of Directors approved an interim dividend of 8.2 cents per share for the half-year period, 17% higher than the previous year. This comprises a core dividend of 6.4 cents per share and a realised dividend of 1.8 cents per share, bringing the total dividend payout to S$1.35 billion.