Singapore’s telcos have had a tough run.
They have been besieged by a litany of woes ranging from declining voice and data revenue and lower average revenue per user (ARPU).
The two listed telcos here, Singtel (SGX: Z74) and StarHub (SGX: CC3) have reported tumbling revenue and net profit.
StarHub’s fiscal 2021 first quarter saw total revenue dip by 3.8% year on year while net profit fell by 24% year on year.
Singtel also saw its fiscal year 2021’s (FY2021) underlying net profit plunging 30% year on year.
If impairments are included, the telco would have recorded its lowest net profit in 23 years.
The good news is that Singtel is aware of the problems and has committed to a strategic review.
CEO Yuan Kuan Moon believes that this move is necessary to realign the business and set it back on the path of growth.
Singtel released its FY2021 annual report recently which contained more details of this strategic reset. Here are five highlights that investors should know.