Singapore Telecommunications (Z74) Q1 2026 TU earnings summary

Executive summary

• Underlying net profit after tax (NPAT) rose 14% year-over-year, driven by higher EBIT from Optus and NCS, and increased profit from Airtel and AIS.

• Net profit surged to S$2.88B, mainly due to a one-time gain of S$2.2B from the sale of a partial stake in Airtel and the Intouch-Gulf Energy merger.

• Operating revenue remained stable despite a 7% depreciation in the Australian Dollar; EBITDA and OpCo EBIT grew 1.3% and 9.6% respectively.

• Regional associates' profit after tax (PAT) grew 15% year-over-year, led by mobile strength in India and Thailand.

• The group is progressing with its Singtel28 plan and expects data centre business to be a growth driver in FY2026.

Financial highlights

• Operating revenue was S$3,392M, stable year-over-year, but up 2.9% in constant currency.

• EBITDA increased 1% year-over-year to S$990M; up 5% on a constant currency basis; margin at 29.2%.

• OpCo EBIT grew 10% year-over-year to S$418M; up 11% on a constant currency basis.

• Underlying net profit reached S$686M, up 14% year-over-year.

• Net profit jumped 317% year-over-year to S$2,882M, including the exceptional gain.

Outlook and guidance

• OpCo EBIT growth for FY26 is expected in the high single digits.

• Annual cost savings target of S$0.2B for Singtel SG and Optus.

• Regional associates' dividend on track, with S$0.6B received in Q1 out of a S$1.0B target.

• Data centre business expected to be a key growth area in FY2026 with new facilities in Thailand and Singapore.

• Plans to accelerate enterprise expansion, scale 5G+ services, and grow Nxera's capacity to over 200MW by Dec 2026.