Singapore Telecommunications (Z74) H1 2022 earnings summary

Executive summary

• Underlying net profit rose 17% YoY to S$983 million; net profit more than doubled to S$954 million as exceptional losses declined.ocument-source]0[/document-source]

• Operating revenue grew 3% to S$7.65 billion, supported by higher mobile service revenue in Australia and ICT and data centre growth.ocument-source]0[/document-source]

• Airtel's turnaround lifted regional associates' pre-tax earnings 21% to S$1.009 billion.ocument-source]1[/document-source]

Financial highlights

• Revenue was S$7,653 million, up 3% reported and 0.4% at constant currency; EBITDA was S$1,929 million, up 1% reported and down 2% at constant currency.ocument-source]4[/document-source]

• EBIT excluding associates was S$572 million, down 4% reported and 6% at constant currency; free cash flow rose 4% to S$1.771 billion.ocument-source]4[/document-source]

• Net profit was S$954 million versus S$466 million; exceptional items after tax were losses of S$29 million versus S$371 million.ocument-source]4[/document-source]

Outlook and guidance

• FY2022 guidance was affirmed; dividends from regional associates expected to be at least S$1.3 billion.ocument-source]2[/document-source]

• FY2022 capital expenditure, including 5G networks and excluding acquisitions and disposals, expected at ~S$2.4 billion: A$1.5 billion for Optus and S$800 million for the rest.ocument-source]2[/document-source]

• Subject to no unforeseen circumstances, FY2022 dividends targeted in the upper half of the 60–80% underlying net profit policy range.ocument-source]2[/document-source]