Singapore Telecommunications Limited (SGX:Z74) (Singtel) posts S$466 million net profit for the half year ended 30 September 2020 (H1 FY21), reversing the loss of S$127 million from a year ago.
Operating revenue for first half of 2020 declined 10% to S$7.43 billion, due to lower equipment sales, roaming and prepaid mobile revenue.
EBITDA fell by 19% to S$1.90 billion due to lower NBN (National Broadband Network) migration revenue, margin pressure from NBN resale in Australia as well as lower equipment margin and roaming services. Excluding exceptional items, underlying net profit declined 36% to S$837 million.
Singtel’s performance for the first half of the year reflected weakness in its Australia fixed line business amid structural challenges in the industry, the impact from COVID-19 and soft economic conditions.
Despite the fall in revenue, Singtel managed to post a profit as its results in 1H last year was affected by the exception provision of S$1.93 billion pre-tax share of Bharti Airtel’s exceptional provision in past dues payable to the India government.
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