Singtel has reported 1HFY2025 earnings of $1.23 billion, down 42% y-o-y because of a one-off gain in the year earlier. Operating revenue was held steady at $6.99 billion.
Underlying net profit for the six months ended Sept, on the other hand, increased by 6% y-o-y to $1.19 billion. EBIT, meanwhile, was up 27% y-o-y to $738 million, led by improvements in its mobile business and cost management at its Australian unit Optus.
NCS, its enterprise tech unit, enjoyed a 40% jump in EBIT as well.
Under the telco's revised dividend policy, it is paying a so-called value realisation component, which comes from proceeds of its active capital management.
For 1HFY2025, Singtel plans to pay a total interim dividend of 8.9 cents. This consists of 7 cents in ordinary dividend, up 35% y-o-y, and also 1.9 cents from the second tranche of value realisation dividend previously announced when it reported its FY2024 earnings.
"Optus and NCS drove the positive momentum, underscoring our focus on execution and operating rigour," says group CEO Yuen Kuan Moon.
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"The progress we have made in our core businesses, growth engines and active capital management has been reflected in the steady increases in our dividend payouts since our strategic reset in 2021," he adds.
"The changes have been well-received by the investment community,” says Yuen, without making direct reference to the near 30% gain in Singtel's share price year to date.
For the rest of the year, Yuen says that the company plans to focus on scaling up its growing data centre operations, and to also support is regional mobile associates as they try and make further gains in adjacent markets namely fixed broadband.
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Singtel expects its EBIT growth for the current FY ending next March to be in the range of low double digits, an upgrade from the range of "high single digits to low double digits" it had previously guided.
Singtel shares closed at $3.16 on Nov 12, down 1.25%, in line with the overall market.
