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Singtel results under pressure from forex, Australian market
2014-02-13 09:41:00| Telecompaper Headlines
(Telecompaper) Singtel reported a drop in quarterly revenues and lowered its full-year outlook, hurt by negative currency effects and more cautious spending by business customers. Revenues for the three months to December fell 7.3 percent to SGD 4.263 billion, while EBITDA edged up 0.1 percent to SGD 1.264 billion. Net profit for fiscal Q3 improved 5.5 percent to SGD 872 million, helped by a strong contribution from affiliates such as Airtel in India. Free cash flow rose 6.9 percent to SGD 712 million. Singtel said sales would have been down 2 percent and EBITDA up 6 percent if the forex effects were excluded. The lower sales were mainly due to its Australian unit Optus and the slowdown in the enterprise market. For the full year to March, Singtel maintained its outlook a mid single-digit decline in revenue and low single-digit drop in EBITDA. However, revenue for Group Consumer is now expected to decline by low double digits and Group Enterprise by low single digits. The group also cut its capital expenditure budget for the year to SGD 2.2 billion, due to currency effects and delayed spending. Free cash flow is still expected to reach SGD 2 billion for the full year.
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Category:Telecommunications