Singapore Telecommunications, Southeast Asia’s biggest phone company, posted a 1.2% fall in second-quarter earnings on lower profits from regional units including Bharti Airtel, reported Bloomberg.
Net income fell to $881.5 million, or 5.5 cents a share, in the three months ended Sept. 30 from $892.2 million, or 5.6 cents, a year earlier, SingTel, as the Singapore-based company is known, said in a statement today. Analysts had expected profit would fall to $876 million, according to the median estimate of five analysts surveyed by Bloomberg News.
Sliding earnings at regional associates including India’s Bharti and increased competition in Australia for its Optus unit are eroding gains from rising Singapore mobile phone revenue. Currency moves exacerbated the decline from its part-owned units, doubling the pace of decline to 12%.
Earnings before interest, tax, depreciation and amortization from Singapore operations rose 5% to $553 million as the company cut back on spending to gain mobile customers. Revenue rose 1%.
Sydney-based Optus, Australia’s second-largest phone company, posted a 1% rise in earnings to A$559 million ($731 million) amid slowing growth in mobile phones.
Optus mobile revenue rose 1% in the period, slowing from the 5% pace in the June quarter, as larger Australian rival Telstra Corp. added new phones and discounted plans to win customers.
SingTel closed yesterday at $3.16 and has gained 6.9% this year, compared with a 10% decline in the Straits Times Index.
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