SingTel - OCBC Investment 2024-04-30: Impairments Unlikely To Impact Dividends​​​​​​​

SingTel - Impairments Unlikely To Impact Dividends​​​​​​​

Published:
SingTel (SGX:Z74) | SGinvestors.ioSingTel (SGX:Z74)
  • SingTel (SGX:Z74) expects to recognize an exceptional non-cash impairment of S$3.1b, which will result in a net loss in 2HFY24 and lower net profit for FY24 (financial year ended 31 Mar 2024).

The Impairment of S$3.1b

  • - Read this at SGinvestors.io -
  • S$2b on goodwill of Optus (due to weaker prospects in the enterprise market, higher cost of capital etc.),
  • S$340m for the Asia Pacific cyber security business (due to lower corporate spending) and
  • S$280m for NCS Australia (due to higher cost of capital).

But this is unlikely to impact SingTel’s payment of dividends

  • - Read this at SGinvestors.io -
  • SingTel’s dividend policy is to pay ordinary dividends at between 70% and 90% of underlying net profit and the payment of dividends will not be impacted by the exceptional provisions.
  • The company noted in its announcement that SingTel is on track to pay at the upper end of its dividend policy for FY24, barring unforeseen circumstances.

TPG Telecom & Optus signed network sharing agreement, subject to relevant regulatory approvals

  • Read more at SGinvestors.io.




Above is the excerpt from report by OCBC Investment Research.
Clients of OCBC Securities may be the first to access the full report in PDF @ https://www.iocbc.com/.




OCBC Research Team OCBC Investment Research | https://www.iocbc.com/ 2024-04-30



Previous report by OCBC:
2023-11-10 SingTel - Driving Cost Synergies.

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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