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Noticed that all 3 telecos rose today. Could it be due to investors moving to safer stocks that offer yields and stable cashflow. ST Engg also jumped today
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Singtel used to have their logo printed in red on their invoices, but now they changed it to just black. Maybe from fengshui perspective, their future performance will always be in the black, and maybe market is reacting to this change.
Just kidding, sharing some light moments.
On a more serious note, I am having a hard time deciding to take profit or wait for the 9c dividends...
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Lately saw Singtel undergoing some reorg on its structure, and buying into mobile advertisement co. Which i think probably not a bad thing, they start to realize being just a traditional network provider probably not for the long run. And now look for way to value add the package with more contents and services.
Hopefully they can execute it right. The wind has been turning with the mobile trend, old sms or line telephone or even IDD probably won't be profitable for too long.
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(12-07-2012, 01:51 PM)hongonn Wrote: Lately saw Singtel undergoing some reorg on its structure, and buying into mobile advertisement co. Which i think probably not a bad thing, they start to realize being just a traditional network provider probably not for the long run. And now look for way to value add the package with more contents and services.
Hopefully they can execute it right. The wind has been turning with the mobile trend, old sms or line telephone or even IDD probably won't be profitable for too long.
I beg to differ on the acquisition of content biz co. for Singtel. IMO, It is rational to value-add into traditional telecom service with more content, but it can be done without directly owning the co. Partnering should be a more rational approach.
“夏则资皮，冬则资纱，旱则资船，水则资车” - 范蠡
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SingTel is the bigger gainer from the recent Fiber network (NGNBN) installation and commission, but it make minimum impact due to its size.
Gain #1
SingTel collected approx S$627 Mils as OpenNet fiber roll-out sub-contractor over 2 years (2010-2012). It is the close to 30% M1 annual revenue or 15% of Starhub annual revenue, but it only contribute less than 2% to SingTel group annual revenue.
Gain #2
SingTel had given the opportunity to monetize part of its asset via NetLink Trust. SingTel is the initial and sole unitholder of NetLink Trust. SingTel is obligated to reduce its share to less than 25% in 60 months. The net worth of NetLink Trust is approx S$1.89 billion. So it will contribute S$1.4 billion in due course, approx S$283 Mils annually. It is more than 26% of M1 annual revenue, 12% of Starhub annual revenue, but only approx 1.5% of SingTel group annual revenue.
Gain #3
SingTel as 30% shareholder of OpenNet, will benefit from the fiber network when more users are migrating from DSL/Cable to Fiber. IMO, the annual revenue of OpenNet should be approx S$600 Mils when fiber subscribers approaching more than one (1) Mils users. It will contribute S$180 Mils to SingTel annual revenue, which is less than 1% of SingTel group annual revenue.
“夏则资皮，冬则资纱，旱则资船，水则资车” - 范蠡
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13-07-2012, 10:57 AM
(This post was last modified: 13-07-2012, 10:58 AM by corydorus.)
As a leader and gov linked "Oligopoly industry" type of setting, is really hard not to be profitable ...
Frankly I don't even bother with much valuation and study of the business.
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Singtel top-up its capital into OpenNet
http://info.sgx.com/webcorannc.nsf/Annou...endocument
Additional 6 mils injected into OpenNet for Singtel 30% stake. Together with others shareholders, total injection is 20 mils
On top of existing capital, total paid-up capital of OpenNet is 40 mils.
“夏则资皮，冬则资纱，旱则资船，水则资车” - 范蠡
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