SingTel - DBS Research 2024-02-26: Focus On Core Operating Profit Trajectory

• SingTel (SGX:Z74)'s 3QFY24 underlying earnings of S$559m (+1.6% q-o-q, flat y-o-y) were 6%-7% below our expectations on sharp drop in Airtel Africa and Telkomsel weakness.

Lower-than-expected pre-tax contribution from associates

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• Telkomsel’s performance was impacted by lower mobile earnings on accelerated declines in legacy services and higher operating expenses and depreciation charges.

3QFY24 underlying core operating profit of S$324m (+16% q-o-q, +13% y-o-y) in line

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• Trustwave losses were absent in 3Q24, as it was classified as a subsidiary held for sale by the end of 2Q24, saving an estimated S$30m every quarter.

On track for upper end of dividend payout ratio guidance

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Sachin MITTAL DBS Group Research | https://www.dbs.com/insightsdirect/ 2024-02-26 SGinvestors.io

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