SingTel full-year net profit up 4.8 percent

SINGAPORE: Southeast Asia's largest telco, Singapore Telecommunications, on Wednesday reported a 4.8 percent full-year increase in net profit, edging out analysts' forecasts.

Net profit for the year ended March 31 was 3.96 billion dollars (2.88 billion US) compared with 3.78 billion dollars a year earlier, SingTel said.

The results met company guidance and beat the average 3.77 billion dollar net profit forecast by analysts.

Operating revenue was 14.84 billion dollars, up 11 percent from the previous year, it said, adding that underlying net profit before exceptional items rose 14.3 percent for the year to 3.68 billion dollars, supported by the company's regional associates.

"The associates contributed 53 percent to the Group's underlying net profit, up five percentage points from a year ago," SingTel said.

In the fourth quarter, net profit rose 10.5 percent to 1.09 billion dollars boosted by a stronger Australian dollar and an exceptional gain of 153 million dollars, it said.

"We have navigated these tough markets in Singapore and Australia remarkably well as demonstrated by this set of earnings. All our businesses are performing well giving us a diversified revenue base," said Chua Sock Koong, SingTel Group chief executive officer.

"The environment remains challenging with the outlook for the global economy looking more uncertain. The Group's fundamentals are strong and we believe we have put in place strategies to continue to grow the business," Chua said.

The company's board of directors recommended a final dividend of 6.9 cents per share.

SingTel shares were a penny lower at 3.74 Singapore dollars against the broader Straits Times Index which was 23.76 points higher in morning trade.

SingTel is 56 percent owned by state-linked investment firm Temasek Holdings, according to the Temasek website.