The telco ended June with 2 million 4G LTE subscribers in Singapore
Singapore Telecommunications reported a net profit of SG$942 million ($673 million) in the first quarter of fiscal 2016, ended June 30, an increase of 13% compared to the same quarter last year.
Total revenue for the period amounted to SG$4.21 billion, climbing 1.5% year-on-year. The group’s earnings before interest, taxes, depreciation and amortization totaled SG$1.24 billion in fiscal Q1, down 1% year-on-year.
“The results reflect the strength and the resilience of Singtel’s core business, and that’s as a result of all measures that we have taken to invest in network, distribution and improving customer experience,” Singtel’s CEO Chua Sock Koong said during a conference call with investors. “Through these initiatives we’ve been able to capture the right demand for mobile data and digital services across the markets where we operate.”
Singtel said it recorded a net exceptional gain of SG$47 million, with divestment gains from venture investments and Airtel Africa’s tower assets.
In Singapore, Singtel’s mobile business generated revenue of SG$327 million in the quarter, up from SG$316 million in the year-ago period. Overall revenue from Singapore business totaled SG$611 million, up 6% year-on-year. Growth in the mobile segment was driven by strong data revenue growth from prepaid and postpaid partially offset by continued declines in roaming, voice and text messaging.
Singtel ended June with over 4 million mobile subscribers, with 4G LTE subscribers reaching 2 million, after a net addition of 134,000 LTE customers during the fiscal Q1.
In Australia, where Singtel operates through telecom operator Optus, total revenue for the first fiscal quarter reached AU$1.90 billion ($1.40 billion), up 13% year-on-year.
Optus ended fiscal Q1 with 9.38 million mobile subscribers. The operator’s 4G customer base totaled 3.77 million at the end of the period, after a net addition of 283,000 subscribers during the quarter. Optus continued its mobile network investments reaching close to 90% population coverage with 4G available on 3,787 sites, of which 2,400 have been upgraded to the 700 megahertz spectrum, as of July 31. Optus’ 4G service is currently available in all capital cities and over 300 regional towns with the number of 4G regional sites increasing by 65% to over 750.
Singtel said that for full fiscal year 2016, mobile communications revenue from Singapore is expected to grow at a mid-single-digit level, while mobile service revenue from Australia is forecast to grow at a low single-digit level.
Singtel has a presence in Asia, Australia and Africa with over 550 million mobile customers in 25 countries, including India, Indonesia, the Philippines and Thailand.
