Singtel's 1QFY26 results were within expectation – revenue/EBITDA were 23%/25% of our FY26e forecast. Underlying PAT grew 14% y-o-y to S$686mil from stellar growth in Bharti and improvement in Optus margins. Exceptional gain of S$2.9bn from disposal of 1.2% stake in Airtel and merger of Intouch and Gulf Energy. Currency shaved off 2.8% points of earnings growth.
- Read this at SGinvestors.io -
Our ACCUMULATE recommendation on Singtel is maintained.
The Positive
Stellar Bharti performance.
Associate Bharti's net profit surged 142.5% y-o-y in 1Q26 to S$194mil. This was despite Bharti Telecom's losses widening to S$54mil due to interest expenses. Bharti Airtel's earnings were supported by the 18.5% y-o-y jump in ARPU to Rp250.
The Negative
Weakness in Singapore and Indonesia.
- Read this at SGinvestors.io -
Telkomsel faced macroeconomic headwinds, legacy service declines, and stiff data competition.
Outlook
Read more at SGinvestors.io.
Above is an excerpt from a report by Phillip Securities Research. Clients of Phillip Capital may be the first to access the full PDF report @ https://www.stocksbnb.com/.
