Singapore Telecommunications Limited (SGX: Z74), or Singtel, has just released its first-quarter fiscal year 2021 business update.
The telco seems to be suffering from the same issues that are plaguing its close competitor, StarHub Ltd (SGX: CC3).
The group’s share price has already plunged by 30% year to date.
If conditions do not improve for Singtel, its share price may continue to languish as its business continues to face challenges on all fronts.
Despite the tough conditions, the blue-chip company plans to roll out its 5G network after winning the 5G licence in Singapore.
Here are three things investors need to know about the group’s latest earnings.
Hit on all fronts
Singtel saw its operating revenue decline across all its four core divisions.
For the consumer side, Singapore and Australia saw declines of 21.6% and 13.3% year on year, respectively.
Group Enterprise revenue slipped 4.5% year on year to S$1.4 billion, while Group Digital Life’s revenue fell sharply by 49% year on year to S$153 million.