Singtel posted a slight decline in reported net profit in the second quarter of the financial year as currency weaknesses masked operational growth.
The Singapore-based operator group’s net profit fell by 0.8% to S$1.03 billion (€676 million), but on an organic basis its bottom line improved by 3%.
EBITDA slid by 3% to S$1.29 billion and revenue also fell by 3% to S$4.18 billion, but both grew by 5% in constant currency terms.
"This quarter, we have again strengthened our position across Singapore, Australia and the associates’ markets," Singtel CEO Chua Sock Koong said in the telco’s Q2 report.
"While currency weakness has affected our reported numbers, our underlying performance is resilient," she said.
The decline in the Australian dollar in particular hit Singtel’s numbers. The telco’s Optus unit contributed S$2.33 billion to group revenues, down from S$2.49 billion in the year-ago quarter, while EBITDA slid from S$712 million from S$755 million.
However, in own currency terms, Optus recorded 7.4% revenue growth to A$2.31 billion and an 8.3% increase in earnings to A$706 million.
Singtel generated S$1.85 billion in revenue in its home market, up 2.5% on Q2 last year. Its biggest single segment was mobile communications, which brought in S$531 million of the total, up from S$523 million.
"The mobile data story resonated strongly in our consumer operations in both Singapore and Australia, where customers traded up to higher-tier data plans against a backdrop of 4G network investments and enhanced offerings," the operator said.
