Singapore Telecommunications popularly known as Singtel posted a lower-than-expected quarterly profit, as acquisition costs by Indian affiliate Bharti weighed, but cheered investors by raising dividends.

The company also it would raise its dividend payout ratio to 55-70% of underlying net profit from 45-60%.

SingTel, earned S$892 million ($693 million) in the fiscal second quarter ended September, down from S$956 million a year ago. The net profit was the lowest since the third quarter of the 2009 financial year and lagged estimates by four analysts who had forecast a quarterly profit of S$960.5 million on average.

Revenue climbed 8.1% to S$4.43 billion. SingTel CEO Chua Sock Koong said on Thursday that Bharti has said it would need another two quarters to restructure its African operations.