Singtel warns of loss on impairment charges - Mobile World Live

Singtel warns of loss on impairment charges

14 MAY 2021

Singtel prepared to record an exceptional loss of SGD1.2 billion ($906.3 million) in the year to end-March 2022 after booking huge impairment charges on its investments in digital marketing platform Amobee and cybersecurity company Trustwave.

CEO Yuen Kuan Moon stated the businesses were hit by industry and operational challenges over the past two fiscal years, with Covid-19 (coronavirus) also a factor. Amobee’s business was hit by an almost year-long contraction in advertising spend by some of the largest companies in North America.

Yuen said the company will review it the investments to identify ways to increase profitablity, with options including restructuring of product or business segments, full or partial divestment and combinations with other industry players all on the table.

“We are open to all types of strategic partnerships and deals including inviting investors who have complementary capabilities and can enhance the value of the businesses.”

The operator booked impairment charges of SGD589 million on Amobee and SGD336 million on Trustwave in the second half of fiscal 2021 (the six months to end-March).

It added Australian mobile unit Optus would write-off AUD197 million ($152.5 million) in the period mainly for its legacy fixed-line networks, and would begin a review of its infrastructure assets.

The operator is also set for an exceptional charge of AUD98 million related to a compensation scheme review.

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Joseph Waring

Joseph Waring joins Mobile World Live as the Asia editor for its new Asia channel. Before joining the GSMA, Joseph was group editor for Telecom Asia for more than ten years. In addition to writing features, news and blogs, he...

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