SingTel

[Temperament]

Results out.

Summary:
- 7.1% decrease QoQ profit
- 14.4% decrease YoY profit
- 3.3% decrease QoQ revenue

(Divested a month back, still monitoring)

Removing the exceptional items, the result is relatively flat.

No wonder!
Singtel is having ongoing and coming promotions soon. i know as i am going to downgrade my Broad Band/Mio Bundle contract soon. Which i don't know why i get into it the first place. My family doesn't watch MIO TV. Must have been sweet-talked by sale people.
You can't be smart all the time.

[corydorus]

http://infopub.sgx.com/FileOpen/1stqtr-N...eID=309850

Singtel quarterly report focus on FCF (exceptional items will shows higher profits in last Q). What i find exceptional is how large the company is. They basically paid down almost S$1B (~980M in exact) in a quarter. Result is flat overall but operationally wise appears getting stronger.

"Underlying net profit dipped 2% to
S$881 million. In constant currency terms, underlying net profit would have grown 5%."

[CityFarmer]

http://infopub.sgx.com/FileOpen/1stqtr-N...eID=309850

Singtel quarterly report focus on FCF (exceptional items will shows higher profits in last Q). What i find exceptional is how large the company is. They basically paid down almost S$1B (~980M in exact) in a quarter. Result is flat overall but operationally wise appears getting stronger.

"Underlying net profit dipped 2% to
S$881 million. In constant currency terms, underlying net profit would have grown 5%."

SingTel is the company with the more than $60 billion market cap, more than $2 billion in average annual capital expense, and average $3.5 billion in annual free cash flow.

It is indeed an exceptional large company in Singapore context.

(not vested)

[greengiraffe]

Optus first-quarter profit slips
HANNAH FRANCIS AND SUPRATIM ADHIKARI AUGUST 14, 2014 11:00AM
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Australia's second largest telco, Optus, has flagged a small decline in mobile service revenue for the current financial year after posting a 1.8 per cent fall in net profit in the June quarter.

In the three months to June 30, Optus' net profit after tax fell to $164 million, down from $167m in the previous corresponding quarter.

However the telco lifted its earnings before interest, tax, depreciation and amortisation (EBITDA) by 4.4 per cent to $597m.

Underlying operating profit for the quarter rose 12.3 per cent to $187m but was weighed down by $23.3m in costs related to the restructure of its workforce, which saw the telco cut 350 jobs in May.

Operating revenue slipped 2.8 per cent to $2.06 billion, year on year.

Total mobile revenue declined 1.5 per cent in the quarter, with Optus attributing the weakness to a $9m hit from the industry-mandated reduction in mobile termination rates and a $15m drop in equipment sales.

The telco's total customer base declined by 25,000 in the quarter, with 9.4 million customers as at June 30, down from 9.43m in the March quarter.

The majority of customers were shed in its mobile broadband subscriber base, which fell 11.5 per cent year on year to 1.33 million.

Mobile service revenue declined by 0.7 per cent year on year to $1.15bn, with the telco flagging an overall decline by a "low single digit level" for the current financial year ending March 31, 2015.

However Optus' 4G mobile customer base increased 282,000 on the March quarter to 2.43 million.

The telco reduced its postpaid mobile monthly churn rate to 1.4 per cent from 1.5 per cent a year ago, while its Net Promoter Score remained positive at +2.

Optus country chief officer Paul O'Sullivan said the telco would upgrade its "entire mobile network in preparation for access to 700MHz spectrum in January 2015, putting us well on track to offer 4G national coverage that reaches 90 per cent of the Australian population by the end of March 2015".

"Our 4G customer base continues to grow steadily, with a further 1.3 million mobile customers using our 4G network over the last 12 months," Mr O'Sullivan said.

Optus launched commercial 4G pilots in Darwin and Perth during the quarter, with parent company SingTel flagging higher amortisation costs with spectrum payments for the Optus 4G network, totalling approximately $776.6m in the current financial year.

SingTel said it expected to shell out $1.2bn in total capital expenditure in Australia for the year, reflecting "the group's continued strategic investments in mobile network, particularly in Australia, and expected increased spend in customer care and management systems".

SingTel's total group net profit for the June quarter declined 17.4 per cent year on year to $S835m ($AS720.56m), impacted by exceptional items relating to its Optus and Airtel businesses, as well as currency fluctuations.

Optus reduced its postpaid mobile monthly churn rate to 1.4 per cent from 1.5 per cent a year ago, while its Net Promoter Score remained positive at +2.

New complaints about Optus to the telecommunications watchdog also fell 41 per cent.

[specuvestor]

http://infopub.sgx.com/FileOpen/1stqtr-N...eID=309850

Singtel quarterly report focus on FCF (exceptional items will shows higher profits in last Q). What i find exceptional is how large the company is. They basically paid down almost S$1B (~980M in exact) in a quarter. Result is flat overall but operationally wise appears getting stronger.

"Underlying net profit dipped 2% to
S$881 million. In constant currency terms, underlying net profit would have grown 5%."

SingTel is the company with the more than $60 billion market cap, more than $2 billion in average annual capital expense, and average $3.5 billion in annual free cash flow.

It is indeed an exceptional large company in Singapore context.

(not vested)

Can't resist to state the obvious but Singtel is the LARGEST market cap in Singapore followed by the cross holding Jardines. IIRC DBS is a distant 3rd while Wilmar was briefly 2nd. "Exceptional large" sounds strange

That said, the banks are catching up on profits while Singtel has been relatively stable through the years.

[Art or Science]

Just a cursory check. Telstra reported relatively good numbers. And Optus not so.

Just trying to find out more about this heavy weight..

[greengiraffe]

Optus still upbeat despite profit drop
THE AUSTRALIAN AUGUST 15, 2014 12:00AM

Fran Foo

Deputy Editor, Technology
Sydney
OPTUS chief Paul O’Sullivan refused to entertain any negative talk after reporting a drop in profit and revenues in the June quarter, and said the company viewed the results as positive as it hits an “inflection” point.

The SingTel-owned outfit saw profit dip 1.8 per cent to $164 million on the back of exceptional items largely tied to lay-offs, which affected 350 people in May.

Operating revenues dropped 2.8 per cent to $2.06 billion while underlying net profit rose 12.3 per cent to $187m. EBITA grew 4.4 per cent to $597m.

“The business is at a point of inflection ... we see it as a positive set of results but clearly (there’s) more work to do,” Mr O’Sullivan said.

Total mobile revenue dropped 1.5 per cent due to $15m in lower equipment sales and a reduced ability to charge customers for terminating contracts that cost $9m.

But Mr O’Sullivan was unperturbed, saying mobile growth industry-wide was largely flat and that Optus’s performance in that area was improving.

He said mobile service revenue, which was declining two quarters ago at 4 per cent, was down 2 per cent last quarter and down 0.8 per cent this quarter.

“That’s the first time in a couple of years our mobile revenue has stabilised.”

He said a return to its “challenger brand” roots was paying off with the carrier notching several firsts — giving customers the ability to share their data allowance across up to five devices at no extra charge and reducing from $100 to $10 for every GB in data allowance exceeded.

Mr O’Sullivan strongly believes the future “is all about data” and has carefully analysed mobile data consumption patterns over the next five to 10 years.

He said the younger cohort was showing the biggest shift in behaviour in terms of data usage. “I wouldn’t focus so much of the number of devices (they have) but their viewing behaviour.”

“We’re seeing the ‘three-screen’ behaviour manifest very strongly in the younger cohort.”

Mr O’Sullivan explained that this group would switch seamlessly between a tablet, a PC screen and their TV when viewing videos.

This has led to an emphasis on video optimisation efforts at Optus and in Singapore where parent SingTel is based.

Optus is upgrading its mobile network in preparation for the 700 MHz spectrum in January, that will see 4G national coverage hit 90 per cent of the population by the end of March next year.

Its 4G customer base has been growing with the telco adding 1.3 million mobile customers on the network over the past 12 months.

Optus Business revenue declined 3 per cent to $367m due to price competition and a decline in legacy data revenues.

The Abbott government is in discussions with the ISP sector on the finer details of its proposed mandatory data retention laws that would require them to keep customers’ IP addresses for up to two years.

Optus corporate and regulatory affairs head David Epstein said the regulation had to be clearly defined. Retaining data for 24 months carried a range of complexities, Mr Epstein said.

“A lot of traditional data is already held at that level. It’s a question of precisely what people are looking at in terms of newer technologies and processes,” he said.

[CityFarmer]

The LTE-A mobile broadband will further enhance the data monetization of the three mobile service operators, but it needs time to for deployment, both on stations and mobile gadgets to support the technology.

(not vested, but vested in M1)

SingTel LTE-Advanced network coverage crosses 50%

SINGAPORE — SingTel today (Aug 19) said its street-level coverage for its 4G LTE-Advanced network now extends to more than 55 per cent of the island.

In a joint statement with Ericsson, the mobile network equipment provider engaged for the deployment, SingTel said its coverage now includes areas such as Orchard, the Central Business District, Shenton Way, Tampines, Jurong and Woodlands. The service will offer download speeds of up to 300Mbps, an earlier Ericsson press statement said.

LTE-Advanced is a step up from existing 4G services in Singapore, and is considered in the industry as “true 4G”. Besides faster speeds, the technology promises more effective wireless transmission range. However, because LTE-Advanced utilises different spectrum bands, existing smartphones will not be able to access the network.

As such, SingTel said it will launch the Samsung Galaxy S5 4G+, which is compatible with LTE-Advanced, on Aug 23. It will also bring in another compatible device - the Samsung Galaxy Alpha 4G+ - in September, according to the statement.

Mr Tay Yeow Lian, Managing Director of Networks at SingTel, said: “We have accelerated our network roll-out programme and are on track to achieve nation-wide outdoor coverage by the first quarter of 2015.”

When contacted, M1 referred to its earlier statement in May, which said the telco has upgraded 4G network to support speeds of up to 300Mbps in selected locations in Orchard Road and Jurong. “M1 customers can expect to enjoy outdoor speeds of up to 300Mbps nationwide by the end of the year,” the statement said.

Meanwhile, a StarHub spokesperson said: “We are upgrading our 4G network to support speeds of up to 300Mbps. This 4G network upgrade will be rolled out across Singapore progressively.” CHANNEL NEWSASIA

http://www.todayonline.com/tech/singtel-...crosses-50

[greengiraffe]

Optus tipped to use Singtel exec to fill CEO void
THE AUSTRALIAN AUGUST 25, 2014 12:00AM

Mitchell Bingemann

Reporter
Sydney
THE global hunt for a new chief executive to lead the nation’s No 2 telco, Optus, has drawn to a close after nine months of searching.

It is understood that while no definitive decision has been made on who the next chief will be, the telco’s parent SingTel is confident it will have a permanent replacement within the next two months.

Sources told The Australian that Optus ceased its international search for a CEO last month, with insiders now signalling the telco would most likely appoint an executive from SingTel to oversee the Australian operations. One possible candidate could be Kuan Moon Yuen, who leads SingTel’s consumer arm.

The search for a new chief to lead Optus has been ongoing since October last year, when former boss Kevin Russell told SingTel of his intentions to leave.

SingTel’s global head of consumer and former Australian boss, Paul O’Sullivan, has been holding the reins while the search was under way.

SingTel has held a shortlist of CEO hopefuls since April, but it is understood the telco has not been able to sign any of the external candidates on its list.

The head of Optus’s consumer business, Vicki Brady, was at one stage considered the internal favourite, but it is understood the Singaporean telecoms giant was keen on signing a CEO with international experience.

Telstra CFO Andy Penn and former News Corp Australia (publisher of The Australian) chief executive Kim Williams have also been linked with the role.

The nine-month search has not been a smooth one for Optus, with insiders at the company describing it as a “struggle”. One major concern has been the ability for SingTel to match international market rates for top talent.

According to SingTel’s 2013 annual report, former Optus chief Kevin Russell was paid $1.75 million last year, less than half the $3.8m Mr Penn received this year.

Sources say the search process has been hampered because of the role’s tiered reporting structure, which requires any prospective Optus chief executive to report to Mr O’Sullivan, who in turn reports to SingTel chief Chua Sock Koong.

Mr O’Sullivan, however, has previously said such perceptions were “crazy” and that the reporting structure was not complex. The hunt for a new CEO comes at a critical time for Optus, which over the past 18 months has been outspent and outgrown by Telstra.

The telco also lost several well-regarded executives in recent months, including head of marketing and brand Nathan Rosenberg and consumer vice-president ­Austin Bryan.

It is understood that Mr Rosenberg quit Optus to pursue new opportunities overseas while Mr Bryan left the company in May as part of a restructure that saw 350 jobs cut from the business.

Under Mr Russell there was a push to improve Optus’s standing among customers by offering ­superior service and overhauling mobile phone plans to increase customer retention.

The telco also launched a range of industry-first mobile phone plans; some of which have been aimed at eliminating “bill shock”; and another that allows consumers to share data among multiple devices for no extra charge.

Those initiatives, however, have yet to flow through to Optus’s financial results. The telco recently reported a 1.8 per cent drop in profit to $164m on the back of exceptional items largely tied to lay-offs, including its May job cuts. Operating revenues dropped 2.8 per cent to $2.06bn.

[greengiraffe]

Optus big bird reaches for the stars as satellite services unfold
THE AUSTRALIAN AUGUST 25, 2014 12:00AM

Mitchell Bingemann

Reporter
Sydney
‘Last’ big bird ready to launch
The space centre in French Guiana from where the Optus satellite will launch next month. Source: AP
OPTUS is set to launch the latest addition to its fleet of satellites, the Optus 10, but the bird could be the telco’s last for a long time as the company prepares for a new era of satellite services to be dominated by the National Broadband Network.

Optus has confirmed that its state-of-the-art Optus 10 satellite is scheduled for launch from the Guiana Space Centre in Kourou, French Guiana, on Thursday, September 11 (Friday AEST).

The satellite will be the sixth satellite to be launched by ­Arianespace for Optus. Arianespace launched the Optus A3 satellite in 1987, followed by C1 in 2003, D1 in 2006, D2 in 2007 and D3 in 2009.

While the launch of the Optus 10 has been beset by delays in the past — two previous launches were aborted in May and June — the telco holds high hopes for the new satellite, which along with its sister birds is a great earner for Optus with high margins and ­annual revenues in excess of $300 million a year.

“This satellite will expand fleet resilience and significantly increase Optus’s fleet capacity, providing greater bandwidth to support the delivery of video, data and voice services to corporate, enterprise and government customers,” said Paul Sheridan, vice-president of Optus Satellite.

Optus has dominated the ­provision and supply of satellite services across Australia and New Zealand for almost 30 years, but the telco is set to take a back seat in the ownership stakes when NBN Co launches its long-term satellites into orbit next year.

NBN Co has spent $2 billion on two new satellites that would be used to deliver communication and broadband services to about 200,000 homes, farms and businesses in rural and remote areas.

While Optus will not directly own those satellites when they are launched next year, the telco has been tapped by NBN Co to manage and control the birds for the next 15 years at least.

Once launched, the satellites would deliver download speeds of up to 25 megabits per second and upload speeds of up to 5Mbps into areas that sit outside NBN Co’s fibre and fixed-wireless footprint.

Optus was considering a sale of its $2bn satellite business last year, but decided to hold on to the asset after investors backed away from the high price tag being sought by the telco.

However, it has not ruled out the possibility of floating its satellite business at a later stage.

Proceeds from a potential float could be used to help fund the telco’s 4G mobile rollout in Australia or be returned to SingTel.

The satellites have been moving away from consumer phone services and primarily provide broadcast services for broadcasters such as the ABC, Foxtel as well as communications services for government departments and big-ticket corporate ­clients