Singtel net profit up 13% to SGD 942 mn

Singapore-based telecom major Singtel today reported a 13 per cent increase in its net profit at SGD 942 million (or Rs 4,446.24 crore) 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 SGD 835 million 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 CEO Chua Sock Koong said in a statement.

Singtel, which holds 32.43 per cent stake in Airtel, recorded a net exceptional gain of SGD 47 million with divestment gains from venture investments and Airtel Africa's tower assets.
"Excluding exceptional items, underlying net profit grew 2 per cent. This would have grown 5 per cent on a constant currency basis," Singtel said.
In this quarter, the Singtel recorded its share of Airtel's net exceptional gain of SGD 32 million 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 SGD 23 million and an impairment charge of SGD 5 million on certain venture investments, it said.

In the corresponding quarter last year, the net exceptional loss comprised mainly SGD 27 million of staff restructuring costs from Optus and the Group's share of Airtel's exceptional losses of SGD 17 million, Singtel said.
Overall, Airtel contributed 8 per cent to the 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 5 per cent to SGD 625 million," it added.

The Group's revenue grew by 1.5 per cent to SGD 4,209 million (or Rs 19,866.48 crore) from SGD 4,148 million (or Rs 19,578.56 crore) during the period under review.
As of June 30, 2015, the Group's combined mobile customer base was up 8 per cent to 565 million from a year ago.