Singapore Telecommunications (Z74) H2 2024 earnings summary

Executive summary

• FY24 underlying net profit rose 10% to S$2.26B; reported net profit fell 64% to S$795M after exceptional impairment charges.

• Mobile momentum in Singapore and Australia, higher regional associate contributions and NCS growth supported resilience amid currency headwinds and enterprise-services declines.

• Strategic priorities shift to sustained value realisation: lift core performance, scale growth engines, manage capital, and advance people and sustainability initiatives.

Financial highlights

• Revenue was S$14.13B, down 3.4% reported and 0.2% at constant currency; EBITDA was S$3.60B, down 2.4% reported and up 0.6% at constant currency.

• EBIT excluding associates rose 3.7% to S$1.15B, or 4.8% at constant currency; regional associates’ pre-tax earnings increased 2.9% to S$2.33B, or 7.1% at constant currency.

• Free cash flow was S$2.57B, down 1.7% YoY.

Outlook and guidance

• FY25 EBIT growth guidance, excluding associates’ contributions, is high single digits to low double digits; core capex is expected to decline.

• FY25 total 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.

• FY25 cost savings of ~S$200M are targeted across Singapore and Optus; regional associates’ dividend outlook is S$1.3B.

• Value realisation dividends are expected at 3–6 cents per share annually; FY28 aspirations include low-double-digit ROIC, high-single-digit to low-double-digit core EBIT growth and Nxera capacity above 200MW.

• Growth capex will support regional data centres, a GPU-as-a-Service pilot and satellite services, with external capital partners expected to fund much of the investment.