Singtel says Q2 profit stable, currency impact hurts

The company posted a net profit of S$1.03 billion

Singapore Telecommunications Ltd reported an almost flat second-quarter net profit and maintained its full-year earnings outlook, as the impact from adverse currency movements offset the growing usage of mobile data across its markets.

The company maintained its forecast for consolidated revenue in the financial year ending March 2016 to grow at a mid-single digit rate, and earnings before interest, taxes, depreciation and amortisation to grow at low-single digit rate.

However it cut its forecast for mobile communications revenue in its home market due to lower contributions from mobile roaming.

Singtel, Southeast Asia's biggest telecommunications operator, posted a net profit of S$1.03 billion ($725.5 million) for the three months ended September, compared with S$1.04 billion a year ago.

It posted a flattish underlying net profit of S$974 million, excluding one-time items.

Singtel, which owns stakes in India's Bharti Airtel and PT Telekomunikasi Indonesia Tbk (Telkom) , derives the bulk of its revenue outside Singapore, making its earnings susceptible to currency changes.

Australia's anti-competition authority recently decided to reduce wholesale prices for services that enable calls and text messages to be received by people using mobile phones, which the company said would cut incoming mobile service revenue at its Australian unit Optus by A$200 million ($141.32 million).