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Kolkata: Singapore Telecommunications<\/a>, commonly known as Singtel<\/a>, on Friday said its underlying net profit for FY22 improved 11% on-year to S$1.92 billion, mainly lifted by regional associate Bharti Airtel<\/a>’s resilient turnaround.
“Our mobile business in Australia and our regional associate, Airtel<\/a> capped the year with solid performances to deliver good results,” Singtel<\/a>’s Group CEO Yuen Kuan Moon said in an official statement Friday.
Singtel added that its regional associates’ pre-tax contributions rose 21% to S$2.07 billion, “driven by Airtel<\/a>’s double-digit increases in operating revenue and Ebitda as it staged a sturdy recovery in India and saw sustained growth in its African operations”.
Singtel effectively owns 31.72% in Bharti Airtel<\/a> -- India’s second-largest telco.
Sunil Mittal-led Bharti Airtel posted nearly a 164% on-year jump in its consolidated net profit at Rs 2,007.8 crore in the March quarter. This was its sixth successive quarter in the black.
Airtel shares<\/a> were marginally down 0.5% to Rs 689.90 on BSE Friday.
Singtel’s post-tax contribution from associates grew by 18%, also propelled by Airtel’s strong performance, but was partially offset by weaker results from AIS and Globe, the company said.
The leading south-east Asian telecom carrier’s net profit grew two-and-a-half times to S$1.95 billion in FY22 on a net exceptional gain.
Singtel said “Airtel continued to have the highest average revenue per user (ARPU) in the (Indian telecom) industry<\/a> at Rs 178 for March quarter”. It added that including higher depreciation & amortisation charges, the Singtel Group’s share of pre-tax operating profit (before finance costs and fair value adjustments) from India and South Asia rose 50% to S$484 million”.
The Asian telecoms carrier, though, said “the Group’s share of Airtel’s net exceptional losses amounted to S$26 million”.
The losses, it said, comprised mainly “a fair value loss on revaluation of Airtel’s foreign currency convertible bonds of S$35 million, asset impairment charges of S$22 million and one-time commercial settlement with a customer of S$25 million”.
The gains, in turn, comprised “a gain on settlement of disputes with a strategic vendor of S$41 million, gains on sale of various tower assets in Africa of S$16 million, and recognition of a deferred tax asset on account of carried forward losses of a subsidiary of S$12 million.” Singtel added.
Earlier this week, ET reported that Singtel has initiated discussions with Bharti Airtel chairman Sunil Mittal to sell a small part of its holding in the Indian telco to the Mittal family.The effective shareholding of the Mittal family in Bharti Airtel is 24.13%.
Singtel, in response to an earlier ET query on whether it was looking to sell a part of its holding in the Indian telco through a block deal, had said “Airtel remained a core investment in its international portfolio”.
It had said Singtel had been “strategic investors in Airtel for decades” and would not comment on any market speculation. It had added that Singtel would abide by market disclosure rules to report all material transactions.