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
Read more at SGinvestors.io.
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