Singtel reports double-digit drop in profit mainly on account of Airtel

Singaporean telecom operator Singtel reported a double-digit drop in profit and weak revenue growth for its fiscal Q3, with financials negatively impacted by decline in profit contribution from regional units, particularly Bharti Airtel. However, Singtel sounded positive on the scope for market stabilisation as guided by Airtel following Q3 results.

The telecom operator saw third-quarter operating revenue grow 4 per cent in constant currency terms to SGD 4.63 billion. Intense competition in India, higher depreciation and amortisation from network and spectrum investments by the regional associates, the increased shift from voice to data, margin erosion in traditional carriage services and lower migration revenue in Australia impacted the group’s results, said the company in a statement. Net profit declined 14 per cent to SGD 823 million and would have been down 12 per cent YoY in constant currency terms.