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

SingTel - Cost Optimisation Efforts To Show In 3QFY24

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

3QFY24F: Removal of Trustwave losses, weaker associate profits

  • - Read this at SGinvestors.io -
  • 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

  • - Read this at SGinvestors.io -
  • 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

  • Read more at SGinvestors.io.



Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.



Kenneth TAN CGS-CIMB Research | LIM Siew Khee CGS-CIMB Research | https://www.cgs-cimb.com 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 5 other brokers at Singtel Target Prices.

Listing of research reports at Singtel Analyst Reports.

Relevant links:
Singtel Share Price History,
Singtel Announcements,
Singtel Dividend Payout Dates & Corporate Actions,
Singtel News






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