Singtel recently made history by posting a first quarter loss of S$668 million for the second quarter. This was a sharp reversal of a net profit of S$667 million in the same quarter last year.
I’ve written about Singtel and its issues regarding Bharti Airtel before so here are some thoughts about what has happened and whether there are issues regarding its dividend.
What did Singtel post such a big loss for the quarter?Singtel has a sizable stake in Airtel which was recently hit with a massive court imposed fine.
They had to take a provision regarding this potential outstanding payment.
As Singtel owns 35% of Airtel, it had to take a share of this potential payment and therefore made a proportionate provision.
Does this affect its dividend?It’s important to note that this didn’t actually affect Singtel’s free cash flow generation for the quarter which was actually stable.
This was
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