SingTel - Maybank Research 2024-05-23: FY24 Results Slight Miss But A Dividend Surprise

• SingTel (SGX:Z74)’s FY24 core earnings grew 10% y-o-y and came in at 98% of MIBG’s and 95% of the street’s full year expectations. While a slight miss, it was anticipated as associates had already reported.

Core: Revenue softness but better cost control

• - Read this at SGinvestors.io -
• EBITDA was helped by lower Optus costs and absence of Trustwave losses.
• Group EBIT increased 3% y-o-y.
• Associates PBT contribution at 1% y-o-y was soft owing to Telkomsel weakness and FX.

FY24: Core earnings up 10% y-o-y

• Core FY24 revenues/EBITDA declined 3%/2% y-o-y mainly owing to AUD weakness and came in at 96-98% of MIBG/street expectations.
• 2HFY24 core earnings rose 9% mainly due to various cost control initiatives and absence of Trustwave losses.
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FY24 dividend of S$0.15

• SingTel reported a final plus value realisation dividend of S$0.098 taking full year dividend to S$0.15 (vs our MIGB/street expectations of S$0.118-0.124) and translating into 6.3% dividend yield. (Note: value realisation dividend of S$0.038 is to be paid in two tranches of S$0.019 per share each in Aug 2024 and Dec 2024. See SingTel's dividend dates.)

Outlook: Encouraging growth and dividend outlook

• Read more at SGinvestors.io.

Hussaini Saifee Maybank Research | https://www.maybank-ke.com.sg/ 2024-05-23 SGinvestors.io

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