- We attended the recent SingTel Investor Day where management re-iterated its commitment to improve ROIC (which is tightly coupled with SingTel's share price) to low double-digits by FY26 (FY23: 8%) by:
- - Read this at SGinvestors.io -
- reducing its capital intensity further via better management of 5G rollout and more prudent spending,
- leveraging on positive price momentum in Airtel to grow ARPU and
- unlocking value from asset recycling and capital partnerships to fund growth investment.
- SingTel also intends to drive EBITDA growth at both NCS and Regional Data Centre (RDC) as it expects these growth engines to account for more than 20% of its EBITDA by FY28E (FY23: 12%).
- - Read this at SGinvestors.io -
Rationalising growth for NCS
- Following 3 levers of growth (client industries, services and geographies) and expanding into Australia through recent acquisition, NCS targets to improve its revenue from FY23’s S$2.7bn to S$5.0bn by FY26E.
- NCS remains focused on expanding into
- enterprise (non-government) projects, and
- overseas projects (particularly Greater China and Australia).
- Management sees longer-term tailwinds from enterprise digitalisation trends, and commented that its bookings momentum is growing quickly from its expansion initiatives.
Attractive opportunity in data centre
- Read more at SGinvestors.io.
