Singtel sale slide offset by Indonesia, Thai mobile affiliates

Singapore Telecommunications announced a net profit of S$944 million for its first quarter ended June, up 0.3 per cent on the year, mainly due to stronger contributions from its mobile affiliates in Indonesia.

Singtel’s sales fell 7.1 per cent on the year to S$3.9 billion. Singapore consumer revenue declined by 8.5 per cent to S$558 million. The growth in mobile data use could not fully offset the revenue decline in roaming and voice services in the city-state. The company’s operating revenue in Australia also fell by 15 per cent due to higher mobile service credits from device repayment plans and a weaker Australian dollar.

Weaker equipment sales also dragged revenue down for both countries. “Equipment sales both in Singapore and Australia showed a decline and that reflects lower re-contracting volumes. There was also a higher take-up of SIM-only plans where they don’t buy the handset from us,” said Chua Sock Koong, group chief executive of Singtel, in a media briefing on Thursday.

Contributions from Singtel’s other mobile affiliates helped to offset its losses. Indonesian mobile operator Telekomunikasi Indonesia’s profit after tax jumped 31.1 per cent on the year to US$244 million (S$327.78 million), supported by strong growth in voice, data and digital businesses. Thailand’s Advanced Info Service also generated higher contribution for the quarter, a 5.1 per cent increase to US$98 million after tax on the year.