Singapore Telecommunications : Q1 Business UpdatePDF (262 KB)

Business Update For The First Quarter Ended 30 June 2022

Singapore, 24 August 2022 - Singtel reported its business update for the first quarter ended 30 June 2022.

Key highlights for the first quarter

• Net profit was up 41%, lifted by improved operational performance and exceptional gains from Airtel and dilution of the Group's effective shareholding in Australia Tower Network
• Underlying net profit increased 11%
• Post-taxcontributions from regional associates jumped 12% with continued strong performance by Airtel
• Operating revenue and EBITDA were down 5.6% and 2.0% respectively due to absence of contributions from NBN migration and Amobee1 as well as a 4% depreciation of the Australian Dollar
• On an underlying basis2, operating revenue and EBITDA would have increased 4.1% and 5.4% respectively with roaming rebound across Singapore and Australia

				Quarter		YOY
				30 Jun	30 Jun		Chge
				2022	2021	Chge	in cc	(1)
				S$ m	S$ m	%	%
Operating revenue			3,584	3,798	-5.6	-3.5
Underlying operating revenue	(2)	3,584	3,519	1.8	4.1
EBITDA				977	997	-2.0	0.4
Underlying EBITDA	(2)		977	949	2.9	5.4
EBIT (before associates' contributions)	328	312	5.2	6.4
Underlying EBIT	(2)			328	280	17.1	18.5
Share of regional associates' post-tax profits	411	366	12.2	14.1
Underlying net profit		499	451	10.7	12.5
Net profit				628	445	41.3	43.4

Notes:

1. Assuming constant exchange rates for the Australian Dollar and United States Dollar from the corresponding quarter ended 30 June 2021.
2. Excluded Optus' NBN migration revenue and contributions from Amobee.

1. Amobee was classified as a 'subsidiary held for sale' as at 31 March 2022 and ceased to be consolidated on a line-by-line basis from 1 April 2022.
2. In constant currency basis and excluding contributions from NBN migration and Amobee.

Message from Group CEO, Mr Yuen Kuan Moon

"This set of positive results reflects the progress made on our strategic reset designed to strengthen our core, unlock the value of our assets and grow new digital businesses. Our growth engine and ICT arm NCS booked S$600 million in new projects across various sectors and we've made the requisite investments to strengthen its capabilities and competitive edge to deliver long-term growth. ICT revenue from data centres and cyber security grew on the back of increased digitalisation while the easing of border controls revived roaming revenues across both our consumer and enterprise businesses. With Singtel delivering the first 5G standalone network to fully cover Singapore in August, and Optus achieving the fastest 5G speeds in Australia, we've further reinforced our 5G leadership and will leverage this critical asset to drive growth.

Looking ahead, we expect the operating environment to remain challenging amid rising inflation and interest rates, and as continuing geopolitical tensions further impact global supply chains. We will need to stay nimble and contend with these realities should they put further pressure on our costs and bottomlines."

Table Of Contents

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Group Summary Income Statement …....………………………………………………………………… 4

Change In Segment Reporting …....……………………………………………………………....……… 4

Business Segments Income Statement…......................................................................................... 5

Review Of Group Operating Performance …....………………………………………………………… 6

Share Of Results Of Regional Associates…................................................................................... 8

Exceptional Items……......…..….......................................................................................................... 10

Appendix 1: FY2022 Quarterly Segments Results (Restated)………………………………………… 11
Appendix 2: Key Product Information..........................................................................................	13
Appendix 3: Currency Table………………………………………………………………………………… 15

Singapore Telecommunications Ltd And Subsidiary Companies

Page 4

GROUP SUMMARY INCOME STATEMENT

For The First Quarter Ended 30 June 2022

	Quarter		YOY
	30 Jun	30 Jun		Chge
	2022	2021	Chge	in cc	(1)
	S$ m	S$ m	%	%
Operating revenue	3,584	3,798	-5.6	-3.5
EBITDA	977	997	-2.0	0.4
- EBITDA margin	27.3%	26.2%
Share of associates' pre-tax profits	572	533	7.3	9.0
EBITDA and share of associates' pre-tax profits	1,550	1,530	1.3	3.4
Depreciation & amortisation	(650)	(685)	-5.2	-2.4
EBIT	900	845	6.5	8.0
Net finance expense	(114)	(97)	17.5	19.7
Taxation	(284)	(294)	-3.5	-2.7
Minority interests	(3)	(3)	3.4	3.4
Underlying net profit	499	451	10.7	12.5
Exceptional items (post-tax)	129	(6)	nm	nm
Net profit	628	445	41.3	43.4

"nm" denotes not meaningful.

Note:

1. Assuming constant exchange rates for the Australian Dollar, United States Dollar and/ or regional currencies from the corresponding quarter ended 30 June 2021.

CHANGE IN SEGMENT REPORTING

With effect from 1 April 2022, the Group's segment reports have been changed to reflect the new organisation structure. The results for the comparative quarters have been restated on the same basis (see Appendix 1).

Singapore Telecommunications Ltd And Subsidiary Companies

Page 5

BUSINESS SEGMENTS INCOME STATEMENT

For The First Quarter Ended 30 June 2022

		Quarter			YOY
		30 Jun	30 Jun					Chge
		2022	2021 (2)		Chge			in cc (1)
		S$ m	S$ m	%	%
Operating revenue
Optus	1,944	2,024	-4.0	**
Singapore Consumer	428	414	3.4	3.4
Group Enterprise (2)(3)	613	612	0.1	0.1
NCS-originated	598	500	19.6	19.6
Singtel-originated(4)	-	28		nm			nm
NCS (3)	598	528	13.2	13.2
Trustwave (3)	44	98	-54.7	-56.2
Less: Intercompany eliminations (5)	(43)	(114)		-62.4			-62.4
Amobee (6)	3,584	3,562	0.6	2.9
-	236		nm			nm
Group	3,584	3,798	-5.6	-3.5
Optus underlying operating revenue (7)	1,944	1,981	-1.9	2.2
Group underlying operating revenue (8)	3,584	3,519	1.8	4.1
EBITDA
Optus	531	542	-2.0	2.1
Singapore Consumer	166	149	11.7	11.7
Group Enterprise (2)(3)	274	271	1.0	1.0
NCS (3)	70	84	-17.2	-17.2
Trustwave (3)	(29)	(24)	17.2	14.8
Corporate	(29)	(28)	3.9	3.9
Less: Intercompany eliminations (5)	(5)	(1)		477.8			477.8
		977	992	-1.5	0.8
Amobee (6)	-	5		nm			nm
Group	977	997	-2.0	0.4
Optus underlying EBITDA (7)	531	499	6.4	10.8
Group underlying EBITDA (8)	977	949	2.9	5.4
EBIT (before associates' contributions)
Optus	85	67	27.8	32.5
Singapore Consumer	91	74	23.0	23.0
Group Enterprise (2)(3)	183	183	0.1	0.1
NCS (3)	48	63	-24.6	-24.6
Trustwave (3)	(33)	(33)	1.5	-0.6
Corporate	(40)	(30)	33.2	33.2
Less: Intercompany eliminations (5)	(6)	(1)		@			@
		328	323	1.5	2.8
Amobee (6)	-	(11)		nm			nm
Group	328	312	5.2	6.4
Optus underlying EBIT (7)	85	24	257.6	267.7
Group underlying EBIT (8)	328	280	17.1	18.5

"**" denotes less than +/-0.05%, "@" denotes more than +/-500% and "nm" denotes not meaningful.