SingTel - Phillip Securities 2024-05-02: Accounting Spring Cleaning, Sprinkled With Cash

• SingTel announced exceptional non-cash impairment provisions of around S$3.1 bn in 2HFY24. As a result, SingTel will report a net loss in 2H24.

SingTel's S$3.1bn of non-cash impairment, largely from Australia

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• Optus enterprise fixed assets: S$470mil
• Asia Pacific Cyber Security goodwill: S$340mil
• NCS Australia: S$280mil

Reasons for the impairment include higher interest rates, the rollout of NBN, weaker enterprise spending, and softer macro conditions.

We view the write-offs as one-offs without impacting our valuations. SingTel also made a S$1bn goodwill impairment on Optus in FY23.

No impact to SingTel's dividend

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Network sharing agreement between Optus & TPG Telecom

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Paul Chew Phillip Securities Research | https://www.stocksbnb.com/ 2024-05-02 SGinvestors.io

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