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Singapore Telecommunications (Singtel) reported a 23.1% decline in net profit for its fiscal first quarter, which ended in June. The decrease was attributed to a one-off exceptional loss reported by its India associate company, Bharti Airtel. Singtel’s net profit amounted to 483 million Singapore dollars (US5.9 million).

The telecom operator’s revenue also fell by 2.7% to S.49 billion, largely due to the weaker Australian dollar. However, despite this decline, Singtel’s underlying net profit experienced a 14.5% year-on-year growth, reaching S1.0 million. This increase was driven by lower net finance expense and higher profits from associates, including Thailand’s Intouch Holdings.

Singtel’s chief executive, Yuen Kuan Moon, acknowledged the better performances and higher contributions from regional associates as market conditions improved. However, he also noted that increased competition and ongoing declines in legacy services impacted the company’s core telecommunications business in Singapore and Australia.

The financial results highlight the challenges faced by Singtel, as it navigates a competitive landscape while contending with the evolution of legacy services. Despite these challenges, Singtel remains committed to driving growth opportunities and adapting to market dynamics.

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