SingTel - Maybank Research 2024-04-29: Optus-TPG Regional Network Sharing Pact. Reiterate BUY

SingTel - Optus-TPG Regional Network Sharing Pact. Reiterate BUY

Published:
SingTel (SGX:Z74) | SGinvestors.ioSingTel (SGX:Z74)
  • SingTel announced on 29 Apr a Multi-Operator Core Network (MOCN) sharing agreement with TPG in Australia. Optus expects to receive total service fees of approximately AUD1.6bn over the 11-year term of the agreement. This translates to incremental cashflow of approximately AUD900m over the same time frame.
  • - Read this at SGinvestors.io -
  • We highlighted a potential Optus rejig in the offing and see it as a key catalyst for SingTel share price. See report: SingTel - 42% HoldCo Discount Unfair Amid Multiple Catalysts.

We think regulatory approval won’t be a challenge

  • - Read this at SGinvestors.io -
  • Also when the Telstra-TPG network deal was announced, Optus warned that it may have to reconsider its regional Australia rollout which bought risk of only one regional network. Telstra is already an incumbent regional operator with a massive reach and thus we don’t see it scaling back its investments in response to an Optus-TPG deal.

Optus impairment unlikely to hit SingTel dividends

  • Read more at SGinvestors.io.




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




Hussaini Saifee Maybank Research | https://www.maybank-ke.com.sg/ 2024-04-29



Read also Maybank's most recent report:
2024-05-23 SingTel - FY24 Results Slight Miss But A Dividend Surprise.

Previous report by Maybank:
2024-05-15 SingTel - Associates' Delivery May Cause Slight FY24E Earnings Miss.

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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