Singapore Telecommunications (Z74) H2 2025 earnings summary

Executive summary

• Achieved strong EBIT growth, with Optus up 55% and NCS up 39% year-over-year, and cost savings of approximately S$250M.

• Underlying NPAT rose 9% (11% in constant currency), and EBIT (excluding associates) increased 20%, driven by Optus and NCS.

• Asset recycling generated S$1.9B in proceeds, supporting higher returns and a total dividend of 17 cents per share, up 13%.

Financial highlights

• Operating revenue was S$14.1B, stable year-over-year; excluding Trustwave, up 1%.

• EBITDA reached S$3.8B, up 5% (6% ex-Trustwave); EBIT (ex-assoc) was S$1.4B, up 20%.

• Underlying net profit was S$2.5B, up 9% (11% in constant currency); net profit was S$4.0B, including a S$1.3B gain from Comcentre divestment.

• Regional associates' PAT was S$1.8B, up 4% (7% in constant currency).

• ROIC improved to 9.6% (underlying ROIC excluding exceptional items at 9.8%).

Outlook and guidance

• FY26 EBIT growth rate (ex-assoc) guided to high single digits; annual cost savings of S$0.2B targeted.

• Regional associates' dividend expected at S$1.0B; capex guidance at S$2.5B.

• Reiterated low double-digit ROIC target in the mid-term.

• Focus areas include scaling enterprise, strengthening mobile and FBB, cost optimisation, and expanding Nxera's DC capacity.