Singapore Telecommunications (Singtel) has announced a robust 83 percent increase in half-yearly profit, attributing the surge to a gain associated with regional associate Telkomsel’s integration with IndiHome, coupled with enhanced contributions from its other divisions.
Telkomsel, Singtel’s Indonesian associate, embarked on a strategic merger with its parent’s IndiHome broadband arm, aiming to extend its footprint into Indonesia’s fixed broadband market. The anticipated completion of the deal is slated for the third quarter of 2023. In the enlarged integrated mobile and fixed broadband company resulting from the merger, SingTel holds a 29.6 percent stake.
Singtel highlighted that, for Telkomsel, the initial contributions from IndiHome effectively offset the impact of SingTel’s reduced stake in the associate, where it had previously held a 35 percent stake.
In a statement, Singtel reported a net profit of S$2.14 billion ($1.58 billion) for the six months ending September 30, a significant increase from S$1.17 billion in the corresponding period the previous year.
The telecom giant’s financial performance reflects the positive outcomes of strategic initiatives, including partnerships and mergers, as it continues to navigate the dynamic telecommunications landscape in the region. Singtel’s diversified portfolio and ongoing efforts to capitalize on emerging opportunities position it favorably in the evolving Southeast Asian market.