Singtel share price down 1% after full-year profit sinks 44%
For the full year, earnings per share stood at 18.96 Singapore cents, lower than the 33.53 Singapore cents a year ago.
Singtel on Wednesday posted a 0.4% rise in net profit to S$773 million for the fiscal fourth quarter ended March 31, compared to S$769.6 million a year ago.
For the full year, net profit fell by 43.5% to S$3.09 billion, from S$5.47 billion a year ago, due to an exceptional gain in the previous year from the group’s NetLink Trust divestment, and lower contributions from the trust.
Earnings per share (EPS) for the quarter was at 4.74 Singapore cents, compared to 4.72 Singapore cents a year ago. For the full year, EPS stood at 18.96 Singapore cents, lower than the 33.53 Singapore cents a year ago.
Singtel share price
Singtel shares eased 0.95% or S$0.03, to S$3.12 minutes into trading on Wednesday morning.
The company’s shares had closed at S$3.15 on Tuesday, higher by one Singapore cent.
Singtel earnings report highlights
Revenue for the fourth quarter gained 1.9% from S$4.26 billion to S$4.34 billion, supported by growth from Singtel’s consumer and digital businesses.
Pre-tax profits for regional associates sank 20% to S$389 million from Airtel’s results, which was impacted by competitive pressures and spectrum amortisation and network costs from the continued expansion of their respective 4G networks.
Underlying profit for the full year was lower by 21% on losses from Airtel, currency headwinds, lower contributions from Telkomsel, and an erosion of carriage services.
Singtel’s board is recommending a final dividend of 10.7 Singapore cents per share, bringing total ordinary dividend per share for the year to 17.5 Singapore cents. The dividend will be paid on August 15, 2019, pending shareholders’ approval.
Going forward, the group expects its consolidated revenue to grow by a mid-single-digit. Capital expenditure is predicted to be around S$2.2 billion.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
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