Boosted profits of Singtel by 14% in Q1, primarily due to increased earnings from Optus and partnerships in the region
Singtel Reports Strong First-Quarter Financial Results
Singapore Telecommunications Limited (Singtel) has announced a significant improvement in its financial performance for the first quarter of 2025. The company's underlying net profit increased by 14% to S$686 million (US$534.77 million), while the statutory net profit surged 317.4% to S$2.9 billion, primarily due to exceptional one-off gains [1][4][5].
The robust results were driven by the strong performance of Singtel's Australian unit, Optus, and key regional associates, including Bharti Airtel and Telkomsel [1]. The post-tax contribution from regional associates grew by 24.5% to S$468 million, with Bharti Airtel's contribution more than doubling [1].
Singtel's CEO, Yuen Kuan Moon, highlighted the data center business as a "bright spot" for the ongoing financial year. New data centers in Thailand and Singapore are nearing completion and are expected to contribute positively to future earnings, aligning with Singtel's strategic focus on expanding its infrastructure and digital services [1].
Despite ongoing macroeconomic uncertainties and currency fluctuations, Singtel achieved a strong first-quarter result, according to its CEO [6]. The company maintains a balanced financial position with manageable net debt of SGD 9.4 billion after asset sales, supporting ongoing investments in growth areas such as data centers and IT services [3].
Key Takeaways:
- Singtel's first-quarter underlying net profit rose to S$686 million.
- The post-tax contribution from regional associates, including Bharti Airtel, Telkomsel, and AIS, grew by 24.5%.
- Bharti Airtel, one of Singtel's regional associates, contributed significantly to Singtel's improved performance, with its post-tax contribution from India and South Asia more than doubling during the quarter.
- Singtel's data centres in Thailand and Singapore are nearing completion and expected to bolster future earnings.
- Singtel achieved a strong first-quarter result despite ongoing macroeconomic uncertainties and currency fluctuations.
- The company maintains a balanced financial position with manageable net debt of SGD 9.4 billion after asset sales, supporting ongoing investments in growth areas such as data centers and IT services.
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