Singapore Telecommunications (Z74) H2 2026 earnings summary

Executive summary

• FY26 underlying net profit rose 12.1% to S$2.77b, or 20.7% excluding Intouch contributions and at constant currency; net profit rose 40% to S$5.61b, including S$2.84b in post-tax exceptional gains.

• ROIC reached the 11.1% medium-term target; operating revenue was stable while EBITDA and OpCo EBIT rose 2% and 9%, respectively.

Financial highlights

• Revenue was S$14.26b, up 0.8% reported and 2.0% at constant currency; EBITDA was S$3.85b, up 1.5% and 2.7%, respectively.

• OpCo EBIT increased 8.9% to S$1.50b; underlying net profit rose 12.1% to S$2.77b.

• Net profit was S$5.61b versus S$4.02b; post-tax exceptional items were S$2.84b versus S$1.55b, mainly from partial Airtel stake sales.

• Free cash flow was S$2.44b, down 1.5%; excluding Intouch dividends, it rose 10.0% to S$2.44b.

Outlook and guidance

• FY27 OpCo EBIT and corporate costs are expected to grow at a low- to mid-single-digit rate, reflecting Middle East uncertainty.

• FY27 total capex is projected at ~S$3.0b: ~S$1.8b core capex and S$1.2b additional investment, mainly for data centres and AI/GPU-as-a-Service.

• FY27 ordinary dividends from regional associates are expected to be S$1.1b; S$0.7b in special dividends from AIS and Gulf had been received to date.

• Strategic priorities include completing the STT GDC acquisition, scaling Nxera and RE:AI, and sustaining enterprise growth locally and internationally.