SingTel Q2 net falls 12 pct on FX, iPhone launch
By Jennifer Tan
SINGAPORE (Reuters) - SingTel, Southeast Asia's largest phone firm, said quarterly profit fell 12 percent and saw lower full-year contributions from its regional associates due to a stronger domestic currency.
State-controlled Singapore Telecommunications -- the city-state's largest listed firm -- said on Wednesday profits were hit by subsidies for its iPhone launch and a stronger Singapore dollar versus regional currencies.
It expected lower full-year pretax earnings contributions from its mobile associates, and said group operating revenue and earnings before interest, tax, depreciation and amortisation (EBITDA) would also be hurt by the fall in the Australian dollar.
DMG & Partners analyst Terence Wong said SingTel's earnings had been hit by lower contributions from Indonesia's Telkomsel and losses from Pakistan's Warid Telecom.
"We expect further profit declines over the next few quarters -- the outlook is not good," Wong said.
Fiscal second-quarter attributable net profit was S$868 million ($577 million) versus S$988 million last year, down 12 percent.
SingTel made underlying net profit before goodwill and exceptionals of S$801 million in the July-September quarter, also down 12 percent compared with S$914 million in the year-ago period.
This was broadly in line with an average underlying net profit forecast of S$810.5 million from four analysts polled by Reuters. Continued...
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