- SingTel (SGX:Z74)'s 3QFY24 earnings were within expectation. Currency was almost a 2% point drag to earnings. Associate contribution disappointed with an 8% y-o-y decline to S$374mil. Airtel Africa suffered a ~S$130mil mark-to-market losses from FX liabilities & translation impact following a massive depreciation of the Nigerian Naira during the quarter. Direct stake in Airtel Africa has been divested.
- - Read this at SGinvestors.io -
The Positive
Early mobile price repair in Australia.
- Optus postpaid ARPU of A$42 is the highest in more than four years. We believe price repair is underway. Competition, especially for entry-level price plans, has eased, and prices are edging higher.
- Despite the network outage, mobile service revenue grew 3.4% y-o-y.
The Negative
Airtel Africa currency hit.
- - Read this at SGinvestors.io -
- A translation loss hit Africa operations due to the weakness in the Nigerian Naira.
Outlook
- We expect mobile price recovery in Australia, India, Thailand, and Indonesia to drive earnings growth. An upside surprise in margins will stem from SingTel’s planned S$600mil reduction in core cost, largely in Optus.
Maintain BUY with unchanged target price of S$2.80
- Read more at SGinvestors.io.
Above is the excerpt from report by Phillip Securities Research.
Clients of Phillip Capital may be the first to access the full report in PDF @ https://www.stocksbnb.com/.
Paul Chew Phillip Securities Research | https://www.stocksbnb.com/ 2024-02-26
Previous report by Phillip:
2023-11-14 SingTel - Aggressively Restructuring To Reality.
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
