  SingTel Telecommunications Ltd. tumbled into its lowest profit in three years as the Southeast Asia’s largest telecom company posted 16 percent fall in its net profit for the third-quarter, burdened by the grim economic conditions and the strength of the Singapore dollar pressed against the Australian dollar and major regional currencies weighed on its results
SingTel’s overseas profits slipped 25 percent, after earnings from Indonesian unit PT Telekomunikasi Selular fell by over 50 percent.
The company has significant stakes in six foreign mobile operators: India''s Bharti Airtel, Indonesia's PT Telkomsel, Thailand's Advanced Info Service, Pakistan's Warid Telecom, the Philippines' Globe Telecom and Pacific Bangladesh Telecom. In Singapore and Australia, the company operates through its ancillary unit, Optus.
The competition outside is expected to flare further with its operations in Australia, SingTel’s biggest market, set to face tough rivalry after Vodafone Group Plc and Hutchison Whampoa Ltd. announced a merger this week. SingTel is set to face fresh challenges in India, from Reliance Communications and Bharti Airtel.
Net income from Asian affiliates dropped 24 percent to S$374 million, its third straight quarterly decline. Contributions from Telekomunikasi Selular, Indonesia’s largest wireless operator tumbled 51 percent to S$110 million as lower calling rates and the rupiah’s 13 decline against the Singapore dollar last year eroded profitability.
Its pre-tax earnings from the regional mobile associates, a key driver for SingTel's bottom-line growth in recent years, came down 27.4 percent to $S462 million from $S636 million a year earlier.
SingTel Optus Pty’s third-quarter net income was constant at Australian $143 million while earnings in Singapore- dollar terms fell 23 percent. Sales rose 10 percent to A$2.2 billion.
Its earnings before interest, taxes, depreciation and amortization in Singapore climbed 14 percent to S$561 million in the quarter. Sales rose 21 percent after it acquired Singapore Computer Systems Ltd.
The company climbed 0.4 percent to S$2.44 as of 10:54 a.m. in Singapore trading. |