SingTel - RHB Invest 2024-08-16: A Strong Start To FY25F; Keep BUY

• SingTel (SGX:Z74)'s 1QFY25 results were broadly in line with strong EBIT growth from the core Singapore and Optus businesses. We see earnings tailwinds lifting SingTel's ROICs to double-digit territory in FY25F and FY26F.
• - Read this at SGinvestors.io -

In line; solid EBIT growth in 1QFY25

• SingTel's 1QFY25 S$603m core earnings (+4.1% q-o-q, +5.4% y-o-y; +9% y-o-y on constant currency) formed 52% and 51% of our and consensus’ estimates. This came from solid pre-associate EBIT growth (+27.4% y-o-y, +53% q-o-q) from 11% core business EBIT growth, the deconsolidation of Trustwave’s (TW) losses, and higher NCS project margins.
• - Read this at SGinvestors.io -
• Currency headwinds distorted regional associate contributions, which dipped 3% y-o-y with the steep fall in the Naira (NGN), and 7% slide in the IDR/S$.
• We see stronger cost-down efforts from the targeted annual S$200m cost savings in the ensuing quarters. Our forecasts are unchanged.

Strong recovery in core mobile revenue.

• Read more at SGinvestors.io.

Singapore Research RHB Securities Research | https://www.rhbgroup.com/ 2024-08-16 SGinvestors.io

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