SingTel - CGS-CIMB Research 2024-02-13: Cost Optimisation Efforts To Show In 3QFY24

SingTel - Cost Optimisation Efforts To Show In 3QFY24

SingTel (SGX:Z74) | SGinvestors.ioSingTel (SGX:Z74)

3QFY24F: Removal of Trustwave losses, weaker associate profits

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  • Share of pre-tax profits from SingTel's associates should have dipped 3% y-o-y due to weaker Telkomsel (reduced stake) and AIS (higher interest expenses) contribution, and strengthening of S$ against associated currencies.

Decent SG growth but pace of Optus recovery could be bumpy

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  • growing NCS contribution supported by expansionary efforts and concerted cost optimisation, and
  • absence of ~S$110m in Trustwave losses.
  • For Optus, while our channel checks indicate that mobile price hikes were conducted by some industry players in Jan-Feb 24, we remain cautious on the pace of mobile segment recovery given potential churn and discounts offered following its network outage in Nov 23.
  • Optus underwent a Senate inquiry, with findings set to report at end-Feb 24. Potential imposition of large fines/penalties remains an overhang on investor sentiment, in our view.

Healthy outlook of associates to drive FY25-26F earnings growth

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Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @

Kenneth TAN CGS-CIMB Research | LIM Siew Khee CGS-CIMB Research | 2024-02-13

Read also CGS-CIMB's most recent report:
2024-02-23 SingTel - Healthy Core Business Hit By Associates' Decline.

Price targets by 6 other brokers at SingTel Target Prices.

Listing of research reports at SingTel Analyst Reports.

Relevant links:
SingTel Share Price History,
SingTel Announcements,
SingTel Dividends & Corporate Actions,
SingTel News Articles


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