Singapore Telecommunications (Z74) H1 2025 earnings summary

Executive summary

• H1 FY25 underlying net profit rose 6.1% to S$1.190B, or 9.1% in constant currency; EBIT excluding associates grew 27.3% to S$738M, led by Optus and NCS.

• Reported net profit fell 42% to S$1.232B, mainly because H1 FY24 included a S$1.2B exceptional gain.

• Operating revenue was S$6.992B, down 0.5% year-over-year; EBITDA rose 9% to S$1.947B.

Financial highlights

• Exceptional items after tax were S$42M versus S$1.015B in H1 FY24.

• Regional associates’ post-tax earnings fell 3.9% to S$817M, including a S$34M adverse currency effect.

• Free cash flow rose 9.3% to S$1.299B, supported by stronger operating performance and efficient capex, partly offset by lower associate dividends.

• Net cash from operating activities was S$2.138B; net cash used in investing and financing activities was S$2.195B and S$1.936B, respectively.

Outlook and guidance

• FY25 EBIT excluding associates is expected to grow by low double digits; H1 growth was 27%, or 16% excluding Trustwave’s prior-year losses.

• FY25 cost savings are targeted at ~S$200M in Singapore and Australia, before inflation.

• FY25 capex is expected at ~S$2.8B: ~S$1.8B core capex and S$1.0B for data centres, GPU-as-a-Service facilities and satellites.

• Regional associate dividends are forecast at ~S$1.1B; a value-realisation dividend of 3–6 cents per share was indicated.