Singapore Telecommunications (Z74) Q2 2025 earnings summary

Executive summary

• H1FY25 saw strong EBIT growth, cost optimization, and value realization initiatives, with underlying NPAT up 6% and EBIT (ex-associates) up 27% year-over-year.

• Net profit after tax for H1 FY2025 was S$1,238.4 million, down from S$2,140.6 million year-over-year, mainly due to lower exceptional gains and higher finance costs.

• Operating revenue was S$6.99B, stable year-over-year; EBITDA rose 9% to S$1.95B; EBIT (ex-assoc) up 27% to S$0.74B.

• Interim dividend increased 35% to 7.0 cents per share, reflecting higher returns and active capital management.

• Amalgamation of GULF and increased value of AIS & Intouch stakes by S$2.5B contributed to value illumination.

Financial highlights

• EBITDA for H1 FY2025 was S$1,946.9 million, up from S$1,786.9 million year-over-year.

• EBIT reached S$1,906.5 million, compared to S$1,774.6 million in the prior year.

• Underlying net profit reached S$1.19B, up 6%; reported net profit S$1.23B, with prior year including a S$1.2B exceptional gain.

• Regional associates' PAT was S$0.82B, down 4% due to currency headwinds.

• Free cash flow improved for both Singapore and Optus operations.

Outlook and guidance

• FY25 EBIT growth (ex-associates) expected in high single to low double digits; cost savings targeted in low double digits.

• Regional associates' dividend forecast at S$1.1B; value realization dividend of 3-6 cents per share.

• H2 focus on EBIT improvement, enterprise growth, mobile price increases in Australia, and scaling growth engines.

• Interim dividend raised to 7.0 cents per share, with a core dividend of 5.6 cents and a value realisation dividend of 1.4 cents.

• No significant seasonality expected in operations.