SingTel, the Singapore-based pan-Asian mobile group, has reported a 12 percent drop in quarterly net profit citing unfavourable currency movements and costs associated with Apple’s iPhone 3G. Net income for its fiscal second-quarter (ended 30 September 2008) dropped to SGD868 million (US$580 million) from SGD988 million a year earlier. However, sales rose 5.3 percent to SGD3.89 billion and net income surpassed a Bloomberg analyst survey that projected net income of SGD810 million. SingTel Group CEO Chua Sock Koong said in a statement that the operator’s pan-Asian footprint subjected it to “the volatility of the regional currencies” and that the strong Singapore dollar had hit earnings at its subsidiaries. “The current global financial crisis is unprecedented and the negative impact on businesses will be inevitable,” she added.

Meanwhile, SingTel announced that in conjunction with regional partners such as Bharti (India) and Globe (the Philippines) it registered more than 170,000 iPhone 3G activations during the quarter after launching the device in July. The operator said that iPhone 3G users in Singapore and Australia (Optus) delivered ARPU approximately 1.5 times higher than its overall postpaid base. However, it noted that the cost of iPhone 3G activations reduced EBITDA by approximately SGD27 million in Singapore and approximately AUD44 million (US$29 million) in Australia during the period.