SingTel - RHB Invest 2023-11-10: The Optus & Dividend Optics; Keep BUY

• SingTel (SGX:Z74)'s 1HFY24 (Apr to Sep 2023) results were a miss on AUD/regional FX weakness and enterprise softness. Positively, management upped its dividend guidance with a higher interim payout of S$0.052, consistent with the narrative on asset recycling and capital management.
• - Read this at SGinvestors.io -
• SingTel remains our preferred Singapore telco exposure.

A miss on FX; dividend payout ratio upgraded.

• SingTel's 1HFY24 core EBITDA slipped 5% y-o-y on the S$ strength against the AUD (-8% y-o-y), with operating revenue down 3%. On constant currency, operating revenue would have risen 1.5% while EBITDA would have been stable.
• - Read this at SGinvestors.io -
• A higher interim dividend of S$0.052 (+13% y-o-y) was declared (77% of core earnings) alongside the revised dividend payout ratio of 70-90% of core earnings (previously 60- 80%) – in line with the strong capital management narrative. See SingTel's dividend dates.

S$0.6bn cost-outs into FY26F.

• Read more at SGinvestors.io.

Singapore Research RHB Securities Research | https://www.rhbgroup.com/ 2023-11-10 SGinvestors.io

---