SingTel net profit falls by 17.4% in first quarter
SingTel has reported that its first quarter net profit fell by 17.4% from the same time in 2013 due to the absence one-time gains and weak forex implications in some of its operating markets.
The company’s net profit fell to $668 million in three months ending in June 30, as a result of staff restructures and its $150 million after diluting its stake in Indian operator Bharti Airtel last year.
In this fiscal quarter, the company did not have any one-time gains, and group revenue from the quarter also came down to S$4.15 billion, reducing by 3.4% from last year.
Group enterprise revenue remained consistent at S$1.56 billion, however, higher revenue from its domestic operations in Singapore was offset by low sales in Australia.
“In Singapore and Australia, tiered data plans are gaining traction with customers and driving mobile data usage,” said SingTel CEO Chua Sock Koong.
The company has pursued a strategy to expand beyond its domestic market and holds stakes Bharti Airtel in India, Indonesian company Telkomsel, Thailand’s Advanced Info Service (AIS), Globe Telecom in the Philippines and Pacific Bangladesh Telecom.
Chua said these markets are experiencing strong growth, particularly with 3G networks, handsets and content.
“We are collaborating with our associates to accelerate investments in networks and launch new data and digital services,” she added.