Recently, the share price of Singtel has breached its 5 year low, falling as low as S$3.36 as of 12th February 2018. This is after they announced their Q3FY18 net profit fell 8.5% to S$890 million from S$973 million one year ago. Singtel attributed the decline due to lower profits from subsidiaries Airtel, Telkomsel and Globe and also due to lower contribution from NetLink Trust following the divestment of its majority stake in the company.
I doubt the divestment of NetLink Trust will have much impact on Singtel’s FY18 profits as NetLink Trust only contributed S$73 million pre-tax profits in 2017.
Based on the net profit contribution broken down by geography, we can see that 48% of Singtel’s net profit comes from its Regional Associates. Singtel’s Regional Associates consists of Airtel, AIS, Telkomsel and Globe.
Singtel has been consistently paying dividends over the past 10 years. I …