Singtel Regional Associate Earnings Fell 23 Percent in Q2FY19

I can see why Singtel’s share price has plunged as low as S$3.08 recently. According to Singtel’s latest quarter financial results, The associates’ post-tax profit contributions declined 23% mainly from
Airtel and Telkomsel in Q2FY19. The contributions from the associates were also negatively impacted by the strong Singapore Dollar. As mentioned in My Personal Analysis of Singtel48% of Singtel’s net profit comes from its Regional Associates which consists of Airtel, AIS, Telkomsel and Globe.

From the presentation slide from Singtel below, I can see that the two regional associates, Telkomsel, the indonesian Telco and India based Telco, Bharti contributed to the decline.

There was a lack of information from Singtel about its Regional Associates earnings, thus I can only rely on what I read about from other sources such as analyst review and news coverage. Read More

My Personal Analysis of Singtel

Recently, the share price of Singtel has breached its 5 year low, falling as low as S$3.36 as of 12th February 2018. This is after they announced their Q3FY18 net profit fell 8.5% to S$890 million from S$973 million one year ago. Singtel attributed the decline due to lower profits from subsidiaries Airtel, Telkomsel and Globe and also due to lower contribution from NetLink Trust following the divestment of its majority stake in the company.

I doubt the divestment of NetLink Trust will have much impact on Singtel’s FY18 profits as NetLink Trust only contributed S$73 million pre-tax profits in 2017. Read More