News
Singapore incumbent’s EBITDA up 7% on increased contribution from international affiliates.
Singtel this week reported a 7.1% on-year decline in fiscal first quarter revenue, but EBITDA increased 5.1% on rising data consumption, particularly at the telco’s overseas affiliates.
Revenue for the three months to 30 June came in at S$3.91 billion (€2.6 billion), compared to S$4.21 billion in the corresponding quarter a year earlier. The Singaporean incumbent attributed the decline to mandated cuts in mobile termination rates (MTRs) in Australia, and the depreciation of the Australian dollar.
Excluding the MTR reduction, revenue would have slipped 1% in constant currency terms, Singtel said.
"The recurring theme across all our markets is mobile data. Having invested heavily in 3G and 4G networks and services and with the rise of smartphone adoption, our associates were well-position to successfully drive data usage and customer growth," said Singtel CEO Chua Sock Koong, in a statement on Thursday.
Indeed, Airtel and Telkomsel – Singtel’s affiliates in India and Indonesia – saw their combined quarterly pretax profit climb 14% year-on-year to S$714 million on continued growth in data customers and usage.
The performance contributed to a 5.1% increase in group EBITDA to S$2 billion. Excluding pre-tax earnings from international affiliates, Singtel’s EBITDA was flat at S$1.24 billion.
The performance also helped to drive up Singtel’s group net profit, which came in at S$944 million, compared to S$942 million at the end of June 2015.
