- SingTel (SGX:Z74)'s FY23 revenue met our expectations at 103% of FY23e estimates. EBITDA was 96% of estimates. Australian dollar weakness of 7.4% y-o-y in 2H23 was a major drag to earnings.
- 2H23 underlying PATMI grew 11% to S$1.05bn. Almost all the growth came from lower depreciation and amortisation of S$90mil. Optus remains the major drag in earnings with its paltry ROIC of ~2% and 2H23 net profit of only A$7mil.
- - Read this at SGinvestors.io -
The Positives
Re-opening boost for Singapore mobile.
- SingTel's mobile service revenue increased 13% y-o-y to S$431mil from higher ARPU (+9%) and subscribers (+4%).
- - Read this at SGinvestors.io -
Continued strength in Bharti earnings.
- Earnings contribution from Bharti rose 44% y-o-y to S$213mil. Earnings benefited from higher ARPU (+8% y-o-y), increased data usage and strong 4G subscribers (+12%). However, the pace of growth should stabilise as ARPU is flat q-o-q at Rp193.
The Negative
Challenging profitability at Optus.
- Read more at SGinvestors.io.
