Singapore Telecommunications (Z74) Q3 2025 earnings summary

Executive summary

• Underlying net profit after tax (NPAT) rose 11% year-over-year for the nine months, with Q3 underlying net profit up 22%, driven by strong performances from Optus, NCS, and higher contributions from Airtel and AIS.

• EBIT excluding associates grew 20% year-over-year for nine months; Q3 EBIT increased 6.2% due to lower depreciation.

• Net profit for the nine months was S$2.6B, up 2%, including an exceptional gain of S$1.2B from Tsel dilution in the prior year; Q3 net profit more than doubled to S$1.32B on exceptional gains.

• Regional associates' profit after tax increased 4% year-over-year, mainly from India and Thailand, offsetting weaker results from Telkomsel and Intouch.

• CEO highlighted continued execution of the Singtel28 plan, focusing on digital growth, AI, data centres, and connectivity.

Financial highlights

• Nine-month operating revenue was S$10.6B, stable year-over-year; EBITDA reached S$2.9B, up 6%.

• EBIT (ex-associate contribution) was S$1.1B, up 20% year-over-year; underlying net profit was S$1.9B, up 11%.

• Q3 operating revenue was S$3.63B, up 1% year-over-year; EBITDA up 0.9% to S$943M.

• Q3 EBIT (before associates) up 6.2% to S$344M; underlying net profit up 21.6% to S$680M.

• Net profit for nine months down 2% to S$2.55B due to lower exceptional gains.

Outlook and guidance

• FY25 EBIT growth rate (excluding associates) expected in the high teens to low twenties percent, up from previous low double-digit guidance.

• Ordinary dividend expected to be around 16.5 cents per share, subject to performance and approval.

• Cost savings of approximately S$200M targeted in Singtel Singapore and Optus, with full-year target achieved within nine months.

• Dividends from regional associates projected at S$1.3B, up from S$1.1B.

• Total capital expenditure forecast at S$2.8B, with S$1.8B core capex and S$1.0B for data centres, GPU-as-a-Service, and satellites.