Singtel Q1 profit hits 16-year low on Airtel losses, higher costs

Singtel posted a 35 per cent slump in net profit to S$541.1 million for its first quarter, down from S$831.5 million for the year-ago period, amid industry and economic headwinds.SINGTEL'S net profit has hit a 16-year low amid industry and economic headwinds, according to results released before the market opened on Thursday.

Excluding Airtel, net profit would have fallen 3.4 per cent, Singtel said. Its share of associates' pre-tax profits fell by 13.7 per cent to S$359 million, largely led by Airtel.Despite the intense competition in India’s telecom market having whittled the number of players down to three, Singtel management remained cautious on the near-term prospects.“It depends on how each player will react.

“The market will start to turn around if you see decisive price increases. And, frankly, the timing of that is anyone’s guess,” she added. Yuen Kuan Moon, who heads the Singapore consumer business, said that a lower entry price for the GOMO segment has diluted overall ARPU, but noted that the cost of service was lower than “the traditional mobile customers that come onto Singtel-branded service” as well.

Singtel group enterprise chief Bill Chang said that the company is keeping an eye on economic slumps both globally and closer to home.

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