Singapore Telecommunications (Z74) H2 2025 earnings summary

Executive summary

• Underlying net profit rose 9.3% to S$2.470b, or 11% in constant currency; reported net profit reached S$4.017b, mainly on the Comcentre divestment gain.

• EBIT excluding associates increased 19.8%, supported by Optus and NCS; operating revenue was steady and EBITDA rose 5.4%.

• Asset recycling generated S$1.9b in FY25 proceeds; total ordinary dividends were 17.0 cents per share, up 13%.

Financial highlights

• Revenue was S$14.146b, up 0.1% reported and 0.8% in constant currency; EBITDA was S$3.792b, up 5.4% and 6.1%, respectively.

• EBIT excluding associates was S$1.381b, up 19.8%; regional associates’ pre-tax earnings were S$2.494b, up 6.9%.

• Regional associates’ PAT was S$1.8b, up 4% reported and 7% in constant currency.

• Underlying net profit was S$2.470b, up 9.3%; net profit was S$4.017b versus S$795m in FY24.

• ROIC improved to 9.6%; underlying ROIC excluding exceptional items was 9.8%.

Outlook and guidance

• FY26 EBIT excluding associates is expected to grow at a high-single-digit rate; annual cost savings of ~S$200m are targeted.

• Regional associate dividends are expected at ~S$1.0b; FY26 capex is guided at ~S$2.5b, comprising ~S$1.7b core capex and S$0.8b for data centres, AI, digitalisation and satellites.

• Low double-digit ROIC remains the mid-term target.

• Priorities include scaling NCS and Nxera, improving enterprise performance, strengthening mobile and broadband, and reinvesting capital for growth and returns.