SingTel - UOB Kay Hian 2024-04-30: Striking A Deal In Regional Australia

• SingTel announced an 11-year A$1.6b network sharing deal with TPG in regional Australia, receiving around A$900m of incremental cashflows over 11 years. However, we expect minimal near-term earnings impact for SingTel.
• - Read this at SGinvestors.io -

SingTel announced huge impairment in 2HFY24...

• SingTel announced that the group would recognise S$3.1b of exceptional non-cash impairment in 2HFY24. This is on the back of
  1. - Read this at SGinvestors.io -
  2. impairment of goodwill (S$340m) of the group’s Asia Pacific cybersecurity business from general business weakness,
  3. impairment of NCS Australia (S$280m) from higher cost of capital and most significantly,
  4. impairment on Optus (S$2b).
• The impairments reflected a range of factors including weaker prospects in the enterprise market, increased cost of capital and the softer macroeconomic outlook in Australia.

… as the enterprise segment underperforms.

• Read more at SGinvestors.io.

Chong Lee Len UOB Kay Hian Research | Llelleythan Tan Yi Rong UOB Kay Hian | https://research.uobkayhian.com/ 2024-04-30 SGinvestors.io

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