Singtel stock: Company raises outlook as core earnings improve

Singapore Telecommunications raised its fiscal 2027 operating earnings outlook on Friday, November 13, after stronger first-half performance. The company also approved a larger interim dividend, according to a Reuters report published by ETTelecom.

Outlook moves higher

Singtel now expects fiscal 2027 earnings before interest and taxes for its operating companies, excluding regional associates, to grow in the mid-to-high single digits. The previous outlook called for low-to-mid-single-digit growth.

Underlying net profit for the six months ended September 30 rose to 1.49 billion Singapore dollars from 1.35 billion Singapore dollars a year earlier. Contributions from regional associates including Bharti Airtel, Advanced Info Service and Telkomsel increased 9 percent to 993 million Singapore dollars.

Reported profit faces comparison

Reported net profit fell 55 percent to 1.54 billion Singapore dollars. The decline reflected the absence of 2.21 billion Singapore dollars in exceptional gains recorded in the prior-year period from portfolio transactions and the Intouch-Gulf Energy merger.

Operating revenue increased 6 percent to 7.29 billion Singapore dollars. Singtel said stronger performance at its operating units and regional associates supported the improvement in underlying earnings, while Optus revenue declined 2 percent and profitability improved through stronger mobile performance and cost management.

Dividend adds shareholder focus

The board approved an interim dividend of 0.09 Singapore dollars per share, compared with 0.082 Singapore dollars a year earlier. The increase gives investors an additional capital-return factor to weigh alongside the upgraded operating outlook and the lower reported profit.

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