- SingTel (SGX:Z74)'s 1QFY24 (Apr to Jun 2023) revenue and EBITDA were within expectations at both 23% of our FY24e forecast. The 9% decline in the Australian dollar and drop in Optus margins were the drag on earnings.
- - Read this at SGinvestors.io -
- Optus remains the weakest spot for the group with EBIT declining 28% y-o-y in local currency terms to S$56mil. Despite the larger revenue and market size, Optus EBIT is only 23% of Singapore operations.
- Upgrade SingTel to BUY with lower target price of S$2.80 (previously S$2.84).
- Valuations are attractive but any re-rating for SingTel will come from its S$6bn asset monetization efforts, better cost controls at Optus, mobile price restoration and broadband growth.
The Positives
Stellar performance for Bharti.
- - Read this at SGinvestors.io -
- The earnings growth at Bharti was before the exceptional loss of S$114mil from a devaluation of the Nigerian Naira (14 June) and fair value loss from its foreign currency convertible bonds.
Digital Infraco, the new source of growth.
- Read more at SGinvestors.io.
