Singtel this week posted a strong set of first quarter results, helped in no small part by its Australian business Optus.
The Singapore-based operator posted a 12.8% increase in net profit to S$942 million (€602 million) for the three months to the end of June, aided by an exceptional gain of S$47 million from divestments, including Airtel Africa’s tower assets.
Excluding exceptionals, net profit would have grown by 2%, although that figure was impacted by currency fluctuations; at constant currency levels, net profit grew by 5%.
The weaker Australian dollar meant operating revenues grew by 1.5% to S$4.21 billion (€2.7 billion), while EBITDA fell by 1% to S$1.24 billion; in constant currency terms those two figures grew by 8.3% and 5.3% respectively.
"This quarter’s results reflect the strong execution in our business. Across our different markets, we are taking bold strategic measures to shape our business and the market," said Singtel CEO Chua Sock Koong, in a statement.
"We are accelerating investments in spectrum, networks and systems, and transform ing our cost structure," she said, adding that Singtel is "gaining good momentum" in areas such as cyber security, cloud and smart city services.
Its currency might have affected Singtel’s headline growth figures, but the telco’s Australian business was anything but weak in Q1.
Optus posted a 19.6% rise in net profit to A$196 million (€130 million), while EBITDA grew by 7.3% to A$641million. Operating revenue rose by 11.3% to A$2.3 billion.
The firm said average revenue per user (ARPU) grew by 5.4% to A$43 (€28) per month, driven by growth in 4G customers and in mobile data consumption. Optus added 290,000 new 4G customers during the quarter to take its total to 3.82 million. Its total mobile customer base reached 9.38 million.
Optus had 54,000 fixed NBN customers at the end of the quarter, up from 13,000 a year earlier, while its total fixed broadband base grew by 3.6% to 1.04 million.
"We are well-positioned to capture future growth opportunities by bringing together our competitive advantage in customer experience with our renewed focus on driving innovations that entertain customers and enhance their lives," said Optus CEO Allen Lew.
In its home market Singtel had 4.08 million mobile subscribers at the end of June, slightly fewer than it claimed at the start of the quarter but an increase of 1.7% year-on-year. It added 134,000 4G customers during the quarter to takes its 4G base over the 2 million mark.
