Singtel Returns to Profitability in Fiscal H2 with Improved Earnings

Singtel, a Singapore-based communications technology company, has reported attributable profit in fiscal H2. The company's principal activities include operating and providing telecommunications systems and services, as well as investment holding. Its segments include Optus, Singapore Consumer, Group Enterprise, and NCS.

Singapore Telecommunications Ltd (Singtel) has reported a significant increase in attributable profit for the second half of its fiscal year, driven by one-off divestment gains. The company's principal activities include operating and providing telecommunications systems and services, as well as investment holding. Its segments include Optus, Singapore Consumer, Group Enterprise, and NCS.

Singtel's net profit for the fiscal year ended March rose to S$4.02 billion, a substantial increase from the S$795.0 million reported in the prior fiscal year. The surge in profit was primarily attributed to a net exceptional gain of S$1.55 billion from the partial divestment of its Comcentre headquarters [1].

In addition to the strong financial performance, Singtel has announced its first-ever share buyback program worth S$2 billion, equivalent to around US$1.55 billion. The program, which will be implemented over the course of three years until financial year 2028, aims to enhance shareholder value through capital management. The buyback will be financed by the surplus capital generated from the group's asset recycling proceeds [1].

Revenue for the fiscal year ended March increased marginally by 0.1% to S$14.15 billion. Singtel also proposed a final, one-tier tax-exempt ordinary dividend of 10.0 Singapore cents per share, totaling a total dividend payout of about S$1.65 billion for the fiscal year ended March 31 [1].

The company's stock has shown strong performance, with a 24.19% increase in the current year, reflecting investor confidence in Singtel's financial health and strategic initiatives. The stock's valuation remains attractive, with a P/E ratio of 23.2x for 2025 and 22x for 2026, and a yield of 4.36% for 2025 and 4.71% for 2026 [2].

References:
[1] https://www.marketwatch.com/story/singtel-net-soars-on-divestment-gains-plans-s-2-0b-share-buyback-ed6fae4a
[2] https://www.marketscreener.com/quote/stock/SINGAPORE-TELECOMMUNICATI-6491140/