Singapore Telecommunications (Singtel) reported a 176 per cent year-on-year rise in net profit to $3.4 billion for the six months ended September 2025 (1HFY2026), boosted by one-off gains, including proceeds from the partial divestment of its stake in Indian telecom giant Bharti Airtel.
Excluding exceptional items, underlying net profit grew 14 per cent to $1.35 billion, driven by operational improvements across its regional associates and subsidiaries, particularly enterprise technology unit NCS. On a constant-currency basis, underlying profit growth would have been 22 per cent.
Higher Dividends and Asset Monetisation
The board declared an interim dividend of 8.2 cents per share, up from 7 cents a year earlier. This payout includes a core dividend of 6.4 cents and a value realisation dividend of 1.8 cents, funded through proceeds from Singtel’s ongoing multi-year $9 billion asset monetisation programme after deducting growth capital expenditure.
Group CEO Yuen Kuan Moon said the results underscore the positive momentum across Singtel’s diversified portfolio, which continues to lend resilience amid global uncertainties. “Our performance reflects the strength of our regional businesses and the progress of our transformation initiatives,” he said.
Optus Challenges and Growth Opportunities
Yuen acknowledged continued “uncertainty” surrounding Optus, Singtel’s Australian subsidiary, following a series of operational challenges in recent years. However, he emphasised that business and geographical diversity remains a stabilising force for the group, while new growth areas are reshaping the company’s profile over the medium term.
One such engine is Nxera, Singtel’s regional data centre venture, which is projected to deliver over 20 per cent compound annual EBITDA growth over the next four years as new capacity comes online. Yuen added that NCS continues to post robust momentum on strong enterprise demand and healthy bookings.
Airtel Sale Lifts Balance Sheet
Singtel’s 1HFY2026 results included $1.5 billion in proceeds from selling a 0.8 per cent stake in Bharti Airtel, trimming its ownership to 27.5 per cent while retaining its position as the largest shareholder. The latest sale brings total proceeds from Airtel divestments to $5.6 billion, exceeding half of Singtel’s $9 billion asset recycling target, earmarked for funding growth initiatives and shareholder returns.
Upgraded Guidance and Capital Plans
Looking ahead, Singtel raised its EBIT growth guidance for FY2026 to between “high single digits and low double digits”, up from its earlier forecast of “high single-digit” growth. The company also expects dividends from regional associates to reach $1.1 billion, compared to $1.0 billion previously guided.
It reaffirmed plans to achieve $200 million in cost savings across its Singapore operations and Optus this financial year.
Total capital expenditure is projected at $2.5 billion, comprising $1.7 billion in core capex — including A$1.3 billion ($1.1 billion) for Optus and $0.6 billion for the rest of the group. An additional $0.8 billion will be invested in data centres, artificial intelligence, digitalisation, and satellite projects, including a replacement for the ST-2 satellite by 2028.
Potential STT GDC Deal
Singtel has confirmed its participation in ongoing discussions to acquire the remaining equity in STT GDC, a major regional data centre operator majority-owned by ST Telemedia, a wholly owned unit of Temasek Holdings — which is also Singtel’s controlling shareholder.
Yuen said the company’s continued focus on digital infrastructure, capital recycling, and operational excellence will position Singtel for sustainable growth as it scales its regional technology ecosystem.
