SingTel posted 9.6% decline in net profit to S $ 902 million (US$ 715 million) for the third quarter 2011 covering October to December 2011. The company has posted a net profit of S$ 998 million (US$ 792 million) for the same period a year ago. This was the fourth consecutive quarter that SingTel has posted a decline in its net profit.
Singtel attributed the decline to high customers acquisition cost and 3G losses from Bharti Airtel in India. "The strong gain in mobile customers in Singapore during the quarter led to higher acquisition and retention costs, while contributions from the regional mobile associates declined due to their weaker currencies and 3G losses from Bharti India," SingTel said in a statement.
It added that the group recorded higher net finance expense, reflecting its financing strategy of extending debt maturity with long-term borrowings, and higher taxes from Bharti. "Consequently, net profit declined 10% to SGD 902 million," SingTel said.
Airtel South Asia reported strong revenue growth of 12%, reflecting tariff revision amid a more stable competitive environment in India. However, overall earnings were affected by Airtel’s 3G rollout costs, licence fees amortisation and higher finance charges, the statement said.
SingTel reported 2.7% increase in its group revenue at S $ 4.83 Billion (US$ 3.83 Billion) during the quarter compared to S $ 4.704 Billion (US$ 3.73 Billion) it posted for the same period in last financial year. The growth in group revenue of the company was driven by its associated companies in Singapore and Australia. Singtel own Optus in Australia.
"This quarter, the Group recorded healthy growth with Singapore and Australia continuing to add mobile customers. Across their markets, our regional mobile associates have executed well against competition," SingTel Group CEO Chua Sock Koong said.
