Singtel results dented by currency exchange and lower PayTV revenues

Singapore telco Singtel has posted net profits of US$834m for H1 2023, up 23%, boosted by a net exceptional gain from the Group’s partial divestment of its stake in Airtel. However, operating revenue was down 5% to US$5.2 billion partially due to adverse currency effects. The company’s consumer-facing revenues were also dented by the loss of English Premier League rights to Starhub in early 2022.

Yuen Kuan Moon, Singtel Group CEO

Yuen Kuan Moon, Singtel Group CEO, said, “There was a major rebound in our core business as the resumption in travel lifted roaming revenues across both our consumer and enterprise businesses. We’ve also reduced our net debt by nearly a third from a year ago to buttress our balance sheet in these uncertain times.”

Looking specifically at the company’s Singapore Consumer division, operating revenue was up a slender 1% “as higher revenues from mobile service and broadband were partially offset by lower equipment sales and PayTV revenues. TV revenues were affected by the cessation of Premier League. However, margins improved on the back of content cost savings and muted churn.” Prior to the loss of the EPL rights, the company had been airing the competition for 12 years. In better news, it recently picked up rights to show the FIFA World Cup (shared with StarHub).

In terms of outlook for the full year (ending March 31, 2023), the company said: “The macroeconomic outlook has become more challenging with high inflation and rising interest rates likely to curb economic growth. However, the Group is well-positioned to weather the headwinds given its robust financial position and cash generation. The Group remains focused on executing to its strategic reset, including growing 5G share, expanding the footprint of its digital businesses and scaling up ICT arm NCS.”