Singtel full-year results preview: What to expect

Singapore Telecommunications (Singtel) will report its second-half earnings this week. Here are some things for investors to consider.

  • Singtel (SGX: Z74) share price rises to S$2.45 on Tuesday (25 May 2021)
  • The group has launched its 5G Standalone network, making it the first Singapore telco to do so
  • It is also scheduled to report its second-half and full-year financial results for FY2021 later this week
  • Analysts from UOB and CIMB predict that Singtel’s core net profit will decline by at least 18%
  • Buy and sell Singtel stocks with an IG account

Singtel share price: What’s the latest?

Singapore Telecommunications (Singtel) shares are up slightly on Tuesday, ahead of the release of its second-half and full-year earnings for 2021 on 27 May 2021.

The group also launched its 5G Standalone (SA) network this week, becoming the first telecommunications service provider in Singapore to do so.

Compared to 4G, 5G SA delivers twice the responsiveness, 30% faster uploads, and strengthened authentication and encryption capability, according to a press release from the telco.

Since last September, Singtel has been operating its 5G non-SA network under a market trial, offering 5G speeds of up to 1.2 Gbps. Since receiving its 5G licence, Singtel has turned on 5G SA and deployed over a thousand 5G sites across Singapore.

The blue-chip counter has risen 6% year to date. Analyst sentiments published by SGX StockFacts show a consensus rating of ‘outperform’ alongside a 12-month target price of S$2.94 on the stock.

The target price represents a 20% upside from Singtel’s last traded price of S$2.45.

Singtel to continue offering 5% dividend yield in FY2021

UOB analysts rated the stock a ‘buy’ on 24 May 2021, while giving a target price of S$2.84 a share.

They expect the telco to continue offering a 5% annual dividend yield in FY2021 amounting to S$0.115 per share, as the projected S$1.21 billion full-year net exceptional loss announced on 14 May 2021 are non-cash in nature.

Singtel booked non-cash impairment charges of US$438 million and US$250 million against its investments in advertising-technology provider Amobee and cybersecurity firm Trustwave, respectively, for the second half of its financial year ended 31 March 2021.

Meanwhile, its Australian telco subsidiary, Optus, will make non-cash impairments and write-downs of A$197 million.

In terms of financial results, the analysts predict that Singtel’s core net profit for the second half of FY2021 are likely to contract to between S$900 million to S$1 billion ‘in the absence of travel-related revenue and a challenging enterprise business environment’, from S$1.145 billion recorded in the same period a year ago.

UOB’s target price means Singtel will trade at 14 times its FY2022 full-year enterprise value/EBITDA. The analysts believe that the group’s earnings weakness has largely been priced in with current stock valuation.

CIMB’s equity research team maintained their ‘add’ recommendation with a higher target price of S$3.10.

The researchers believe that Singtel’s second-half core net profit will come in at S$930 million to S$940 million, representing an 18% to 19% decline year-on-year.

This will mostly be due to declines from Singtel’s Singapore operations, predicted to drop by between 25% and 27%, Optus (down 67% to 68%), Telkomsel and Globe, they added.

Like UOB, CIMB is also ‘not too concerned’ about the projected net exceptional losses given that they are mainly non-cash charges.

Trade Singtel and other Singapore stocks with IG

Create an IG account or log in to your existing account to get started now.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.


Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.