Singtel Faces Revenue Decline in Q3, Net Profit Reaches S$465 mn

Singapore Telecommunications (Singtel) has reported 3.2 percent decline in revenue, amounting to S$3,593 million for the third quarter ending on December 31, 2023.
Singtel revenue 2023Despite the challenging landscape, the company managed to achieve a net profit of S$465 million during the same period.


The disruption in trading momentum experienced by Optus due to a network outage contributed to a 2.0 percent decrease in operating revenue, totaling S$1,802 million.

Optus revealed that weakness persisted in the enterprise fixed business, attributed to churn and price erosion. However, mobile service revenue of Optus witnessed a 3.4 percent increase to A$996 million driven by prepaid customer growth and higher average revenue per user (ARPU) of A$32. Enhanced mobile performance and lower operating expenses led to a 1.7 percent rise in earnings before interest, taxes, depreciation, and amortization (EBITDA).

Optus had 10.503 million mobile customers including 1.067 million connected (IoT) devices on its telecom network in Australia at the end of December 2023.

Singtel Singapore

Singtel Singapore witnessed a 2.1 percent decline in revenue, amounting to S$1,025 million, amidst a challenging environment characterized by subdued corporate and consumer spending. Intense price competition exerted pressure on average revenue per user (ARPU) of S$25, compounded by the market’s transition towards lower-tier plans.

Singtel Singapore had 4.492 million mobile phone customers on its telecom network at the end of December 2023.

Singtel Singapore’s operating revenue suffered a 2.1 percent drop primarily due to decreases in legacy voice, mobile equipment sales, and pay TV. However, mobile service revenue saw a 1.7 percent uptick driven by customer growth and increased roaming, albeit offset by lower prices. Equipment sales dwindled with the rising popularity of SIM-only plans and extended device replacement cycles. EBITDA experienced a 4.9 percent decrease, attributed to lower operating revenue and inflationary cost escalations.

Singtel Singapore has generated revenue of S$124 million from Fixed broadband, S$35 million from Singtel TV, and S$50 million from Fixed voice during the October-December quarter of 2023.


Meanwhile, NCS recorded a 3.6 percent surge in operating revenue, reaching S$701 million, buoyed by growth in its Enterprise and Gov+ segments. EBITDA witnessed a robust 47 percent increase, driven by resource optimization and a reduction in acquisition-related expenses. Strong bookings of S$694 million were noted for the quarter, alongside a promising pipeline of projects across various sectors.

Digital InfraCo

Digital InfraCo saw a notable 16 percent revenue growth, amounting to S$109 million, primarily propelled by Nxera5’s price uplifts and utility pass-through, coupled with earnings from project-based satellite deployment services. However, operating expenses rose due to increased investments in capabilities to support pipeline projects and regional expansion amidst a competitive labor market. Consequently, EBITDA experienced a 2.7 percent decline.

Singtel Group CEO Yuen Kuan Moon commented on the company’s performance, stating, “Our financial results in the third quarter were stable despite a tough macroeconomic environment and persistent currency headwinds.”

Baburajan Kizhakedath