Telecom operator’s profit boosted by one-off gain from associate
- Singtel’s net profit for the first half of the year rose to S$2.14 billion, an 83% increase compared to the previous year
- The increase in profit was mainly due to a one-off gain from a reduction in Singtel’s effective equity interest in its associate Telkomsel
- Singtel plans to raise its dividend payout ratio by 10 percentage points to 70%-90% of its underlying net profit
- However, revenue fell 3.0% on year to S$7.03 billion due to a sharp depreciation of the Australian dollar and lower contributions from its Singapore business
- Operating revenue from Singtel’s Australian unit Optus rose 1.4% on year to 4.02 million Australian dollars
- Capital expenditure for the whole fiscal year is expected to be around S$2.1 billion, with a majority going towards its Australian business
- Continued currency headwinds are expected from the strong Singapore dollar relative to the Australian and regional currencies
Singapore Telecommunications’ net profit for the first half of the year rose sharply to S$2.14 billion, an 83% increase compared to the previous year. The increase in profit was mainly due to a one-off gain from a reduction in Singtel’s effective equity interest in its associate Telkomsel. Singtel plans to raise its dividend payout ratio by 10 percentage points to 70%-90% of its underlying net profit. However, revenue fell 3.0% on year to S$7.03 billion due to a sharp depreciation of the Australian dollar and lower contributions from its Singapore business. Operating revenue from Singtel’s Australian unit Optus rose 1.4% on year to 4.02 million Australian dollars. Capital expenditure for the whole fiscal year is expected to be around S$2.1 billion, with a majority going towards its Australian business. Continued currency headwinds are expected from the strong Singapore dollar relative to the Australian and regional currencies.
Factuality Level: 7
Factuality Justification: The article provides specific financial figures and statements from Singtel, which can be verified. However, it does not provide any sources or additional context to support the claims made about weak consumer sentiment and inflationary pressures. The article also mentions a severe outage affecting Optus subscribers, but does not provide any further details or sources to verify this information.
Noise Level: 4
Noise Justification: The article provides relevant information about Singapore Telecommunications’ six-month profit and revenue. It mentions the one-off gain from its Indonesia associate and plans to raise dividend payout ratio. However, it also includes irrelevant information about the depreciation of the Australian dollar and a severe outage affecting Optus subscribers, which is not directly related to Singtel’s financial performance.
Financial Relevance: Yes
Financial Markets Impacted: The financial markets impacted by this news article are the telecommunications industry and the currency exchange market.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The news article discusses the financial performance of Singapore Telecommunications and its associate Telkomsel. It mentions a one-off gain from the reduction in Singtel’s effective equity interest in Telkomsel, which contributed to the increase in net profit. However, weak consumer sentiment and inflationary pressures affected the company’s revenue. The article also mentions a sharp depreciation of the Australian dollar and a severe outage at Singtel’s Australian unit Optus, but these events do not qualify as extreme events.
Public Companies: Singtel (Z74.SG)
Key People:
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