SingTel reported a significant 42% drop in its first-half net profit, which fell from S$2.16 billion in the same period last year to S$1.23 billion. This decline is attributed to the absence of exceptional gains that were present in the previous year. Despite this drop, the company's underlying profit showed improvement, particularly in its core businesses, which benefited from cost-cutting measures.
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EBIT Growth
SingTel demonstrated strong EBIT growth of 27% to S$738 million in the first half of the year. This growth was driven by a strategic reset aimed at capturing untapped digital growth in the 5G era, sharpening the company's focus, and improving shareholder value.
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Full-Year Growth Prospects
SingTel has raised its EBIT guidance for the full year, indicating a positive outlook for its financial performance. The company is also expected to see high single- to low double-digit growth in operating earnings for the full year. This optimism is supported by the company's efforts to improve profitability in its core businesses through cost cuts and by focusing on connectivity, digital infrastructure, and digital services.
Dividend Announcement
SingTel has declared an interim dividend of 5.6 cents per share for the first half of the year, with an additional value realization dividend of 1.4 cents per share. The interim dividend will be paid on December 9, 2024, with the record date being November 21, 2024.
Strategic Initiatives
SingTel has reorganized its group to focus on key areas such as connectivity, digital infrastructure, and digital services. This reorganization aims to better position the company for growth and to capture opportunities in the rapidly evolving digital landscape.
Summary
Despite a significant drop in its first-half net profit due to the absence of exceptional gains, SingTel has shown strong EBIT growth and raised its full-year EBIT guidance. The company's strategic initiatives and focus on core businesses are expected to drive improved financial performance and profitability in the coming year.
