Singtel lifts first-half underlying profit 10% and raises annual earnings outlook

what happened

Singapore Telecommunications said on Friday that its underlying net profit for the six months to September 30 reached S$1.49 billion ($1.16 billion), compared with S$1.35 billion a year earlier, according to Reuters. Strong results from the group's operating businesses and its regional affiliates drove the gain. Income from associates such as Bharti Airtel in India, AIS in Thailand and Telkomsel in Indonesia grew 9% after tax, to S$993 million.

Optus, Australia's second-largest telco, which Singtel has held since 2001, saw operating revenue slip 2%. Even so, better mobile results and tighter cost control lifted its profitability. Encouraged by the first half, the company now forecasts that fiscal 2027 EBIT for its operating arm, excluding associates, will rise by mid to high single digits, improving on the earlier low to mid single-digit projection. The interim dividend was set at 9 Singapore cents per share, versus 8.2 cents last year.

why it matters

The upgrade matters most to investors because it signals that core earnings are growing faster than previously expected, while regional associates keep contributing steadily. The drop in Optus revenue alongside higher profit suggests that cost measures and the mobile segment are carrying the improvement. Reuters used an exchange rate of $1 = 1.2869 Singapore dollars.

market impact

Singtel shares: higher guidance and stronger associate income support the stock

• ▲Singtel shares pressure up — raised guidance and stronger profit from regional associates support earnings expectations

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