Weak handset sales weigh on Singtel - Mobile World Live

Weak handset sales weigh on Singtel

27 MAY 2022

Singtel faced pressure on its top-line in its fiscal H2 2022 (ending 31 March) due to a resurgence of Covid-19 (coronavirus), structural challenges in its traditional businesses and a drop in equipment sales in its two major markets, Singapore and Australia.

In its earnings release, CEO Yuen Kuan Moon noted the macroeconomic and geopolitical outlook remains uncertain due to supply chain disruptions, rising inflation and interest rates. However, he expects Singtel to benefit from a recovery in international travel as borders reopen.

Net profit increased more than tenfold year-on-year to SGD994.5 million ($726.1 million) due to exceptional gains. Post-tax profit contributions from regional associates grew 18 per cent, boosted by a turnaround for Bharti Airtel in India.

Operating revenue fell 6.5 per cent to SGD7.7 billion.

Singtel’s consumer group operating revenue dropped 6 per cent to SGD897 million, with mobile sales up 1.7 per cent to SGD382 million due to a gradual recovery in roaming revenue from the easing of travel restrictions and increased 5G adoption.

Equipment sales fell 21.1 per cent to SGD216 million.

Prepaid subscriber numbers fell 4.6 per cent to 1.3 million and post-paid rose 2.3 per cent to 2.8 million.

Blended ARPU increased 2.6 per cent to SGD24, with post-paid up 1.4 per cent to SGD29 and prepaid down 3.1 per cent to SGD12.

Average data consumption per customer grew 30.6 per cent to 9GB a month.

Fixed broadband revenue rose 5.6 per cent to SGD136 million and pay-TV declined 7.7 per cent to SGD87 million.

Optus booked a 4.5 per cent increase in mobile revenue to AUD1.7 billion ($1.2 million), offset by a 25.6 per cent drop in equipment sales to AUD693 million.

Its subscriber base rose 2.8 per cent to 10 million, with balanced gains in prepaid and post-paid.

Blended ARPU increased 8.1 per cent to AUD31 and monthly data usage 12.5 per cent to 12GB.

Operating revenue dropped 9.4 per cent to AUD3.3 billion, as NBN migration turnover decreased 78.4 per cent to AUD18 million.

Group enterprise revenue declined 2.5 per cent to SGD1.9 billion on lower corporate voice turnover, and ICT revenue was stable.

Singtel expects fiscal 2023 capex of SGD2.6 billion compared with SGD2.4 billion, with the lion’s share earmarked for Optus.



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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