SingTel

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[email protected]

FY Result as at 31 Mar 2021
Rev S$15b  (vs 16b)
GP  S$3b  (vs 4b)
NP  S$0.5b (vs 1b)
Final Div 2.4cents no scrip
https://links.sgx.com/FileOpen/2HFY21-Ap...eID=667840

Mr Yuen Kuan Moon, Singtel Group CEO, said, 

“This year’s results are disappointing given unprecedented headwinds from COVID-19 and ongoing structural challenges. The one-time exceptional charge also weighed on our bottom-line number. That said, NCS and our data centre services proved to be bright spots, showing strong growth as enterprises rushed to digitalise and transform their businesses. We will be capitalising on this mass digitalisation with plans for a strategic reset to drive recovery and growth.”


Stay home and stay safe, everyone.

[weijian]

Well, not hard to guess where ex Manpower Minister will eventually be headed, and follow into the footsteps at Keppel Corp/SPH.

Appointment of a new director

https://links.sgx.com/1.0.0/corporate-an...c1e73bc76d

[CY09]

They add value and diversity to the board. Therefore paying them $150,000-$210,000 as Director Fee is worth it.

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SingTel@229

The digital bank joint venture between Grab and Singtel, together with a consortium of other investors, has today applied for a digital bank licence in Malaysia. Based on the guidance provided by Bank Negara Malaysia, it is expected to issue up to five digital bank licences by the first quarter of 2022.
https://links.sgx.com/1.0.0/corporate-an...b0b36c88f0

ifast@815
iFAST Corps leads consortium to apply digital bank license in Malaysia

“We think that the B40 segment has clearly been unserved and left behind even as Malaysia progresses. With the synergistic capabilities within our consortium, the solutions offered for the B40 are ones that will provide immediate benefits and results – such as free life insurance, interest-free loans for daily necessities, and micro investments and insurance. iFAST Bank will serve the B40 segment and be profitable while doing so,” said Mr Lim.

The Malaysian consortium partners are Koperasi Angkatan Tentera Malaysia Berhad (“Koperasi Tentera”), THZ Alliance Sdn. Bhd (“THZ Alliance”), and Mr Lee Thiam Wah, founder and major shareholder of 99 Speed Mart Sdn. Bhd (“99 Speedmart”).

Internationally, the iFAST Bank consortium comprises Yillion Fintech Pte. Ltd. (亿联科技) which provides the core digital banking technology and capabilities for Yillion Bank (亿联银行). Yillion Bank is one of the four digital banks in China founded by Zonfar Financial Holding (中发金控投资管 理有限公司) and Hong Kong-listed Meituan Dianping (美团点评)

According to BNM, it may issue up to five digital bank licences to qualified applicants by the first quarter of 2022. The digital bank licensee will be able to serve both retail customers as well as corporate customers.
https://links.sgx.com/FileOpen/iFAST_MY%...eID=673073

Stay home and stay safe, everyone.

[ongweehiang]

https://www.afr.com/companies/telecommun...701-p585tm

While they are going after the digital bank license...

Telstra managed steal a march on them to divest their towers!

Singtel or Optus started the process of divestment much earlier and got outfox by Telstra...🤦🏻‍♂️

Follow us @ www.weightedresearch.com

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SingTel@226
Sustainability report - material risk FY2030
https://links.sgx.com/FileOpen/2021%20Su...eID=673912



Gratitude.

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singtel@231
1QFY2021 Result - growth in all businesses
https://links.sgx.com/FileOpen/1stqtr-Bu...eID=678318


https://drive.google.com/open?id=1sFD5SU...ZO-55EqcKS

Gratitude!

[¯|_(ツ)_/¯]

SingTel@247

India rights USD450m for 5G roll out.
https://links.sgx.com/FileOpen/Singtel_N...eID=684314


https://drive.google.com/open?id=1dpCy_6...6WnTUn0JsM

Stay home and stay safe, everyone.

[weijian]

Another announcement by a GLC to be more capital efficient. Dividend has materially almost doubled since few years back and it continues to divest assets to return the capital to shareholders. And then the shareholder (in this case Temasek) will decide how to redeploy the capital to grow elsewhere.

Singtel establishes S$2 billion value realisation share buyback programme

– Singtel’s Board of Directors has authorised its first share buyback programme of up to S$2 billion as part of the Group’s active capital management strategy to drive sustained growth and value for shareholders.

Funding for the share buybacks will be underpinned by excess capital from the Group’s asset recycling proceeds. In May 2024, Singtel set a mid-term asset recycling target of S$6 billion under its Singtel28 growth plan which it is now raising to S$9 billion.

The value realisation share buyback programme is the latest capital management initiative undertaken by Singtel, following a change in dividend policy in May 2024 to include a value realisation dividend in addition to a core dividend. The value realisation dividend was introduced to return excess capital to shareholders.

2bil SBB: https://links.sgx.com/FileOpen/NR_202505...eID=846370
FY25 ppt: https://links.sgx.com/FileOpen/FY25-slid...eID=846367

[swakoo]

Another announcement by a GLC to be more capital efficient. Dividend has materially almost doubled since few years back and it continues to divest assets to return the capital to shareholders. And then the shareholder (in this case Temasek) will decide how to redeploy the capital to grow elsewhere.

I think it is more than this.

In this interesting recent interview with Singtel CFO, Arthur Lang, the interviewer calculates the ~27% Singtel's stake in Indian telco, Bharti Airtel, to be worth around $50 bil and confirmed by the CFO (based on recent sale of 0.8% stake for $1.5 bil). CFO discloses that based on mkt cap, Singtel's stakes in all the regional associates (Bharti Airtel, Thai AIS, Indonesia Telkomsel, Phil Globe) add up to about $75 bil. Meanwhile Singtel mkt cap is about $80 bil. Implying that Sg telco biz, NCS, Nxera data centres and Aust Optus is worth only about $5 bil!

The huge discrepancy is what is called holding company discount. Not mentioned in interview but investors prefer to invest directly than via a holding company for transparency reasons. The value realisation share buyback and value realisation dividend are essentially attempts to improve transparency and reduce the holding co discount.

The CFO explains this new dividend policy for the next 5 to potentially 10 years. Singtel is fortunate that Indian telco tailwinds for past 1.5 years have well enabled execution of this new dividend policy. After a brutal price war initiated by new entrant and deep pocketed competitor Jio starting 2017-19, there was finally a Indian telco tariff hike in July 2024 which boosted profits and share price for Bharti Airtel for past 1.5 years. And transmitted to Singtel - see chart. Jio is expected to IPO by 1H2026 and there are expectations for another Indian telco tariff hike in the next few months.

Elsewhere in the interview, CFO also explains actions being taken to deal with Optus outage issues. And on balance Singtel is a well diversified biz with Optus accounting for less than 10% of biz (EBIT or profit contribution wise).

CFO also touches on the new growth engines: digital services (NCS) and digital infrastructure (Nxera data centres) plus AI. Traditional connectivity also has a growth engine in fixed broadband with current very low penetrations in India, Indonesia and Philippines.

Meanwhile, a full acquisition of ST Telemedia Global Data Centres as part of KKR consortium (to inorganically expand Nxera data centres capacity) is still up in the air.