Singtel H1 net profit slumps 55% as divestment gains dry up

Singtel's net profit for the first half of its financial year fell 55 per cent to S$1.54 billion, primarily due to the absence of divestment gains that had boosted the prior-year period. The decline in bottom-line earnings masks a more resilient underlying operational performance, with the group's core profit rising 10 per cent, reflecting improved execution across its business segments.

Revenue for the half-year climbed 6 per cent, driven by growth across the group's regional operations and enhanced customer monetisation efforts. The telecommunications operator attributed the revenue expansion to its ongoing investments in 5G infrastructure, expanding enterprise solutions and improved performance in its regional associates and investee companies.

Building on the stronger operational momentum, Singtel raised its full-year operating earnings guidance, signalling management confidence in sustained momentum through the remainder of the financial year. The upgraded outlook reflects expectations of continued revenue growth and disciplined cost management, though the company cautioned that currency headwinds and competitive pressures remain key variables to monitor.

The results underscore Singtel's strategic pivot towards organic growth and operational efficiency improvements, following recent portfolio optimisation measures. The group's regional footprint, spanning markets across Asia-Pacific, continues to provide diversification benefits amid challenging macroeconomic conditions in the sector.