- 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
Read also OCBC's most recent report:
2024-11-14 SingTel - Progressively Increasing Dividends.
Previous report by OCBC:
2024-07-16 SingTel - Strategizing For Growth.
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 Dividends & Corporate Actions,
SingTel News Articles