SingTel’s Capex in Singapore and Australia will be S$950 million and A$1.1 billion for current fiscal

Telecom Lead Asia: SingTel on Wednesday said Capex (Capital expenditure) in Singapore and Australia will be around S$950 million and A$1.1 billion, respectively, for the current fiscal.

SingTel Group said it continued to invest in networks and transformational initiatives while delivering stable earnings and improved cash flows.

Its net profit for the second quarter ended 30 September 2012 declined 2 percent to S$868 million.

Revenue from Singapore increased 4 percent to S$1.67 billion.

Against a negative mobile industry growth in Australia, Optus’ revenue declined 4 percent to A$2.24 billion.

Pre-tax earnings from the regional mobile associates including Bharti Airtel grew 17 percent to S$549 million.

Telkomsel, AIS and Globe recorded stronger operational performance, partially offset by lower earnings from Airtel and weaker regional currencies.

As at 30 September 2012, the Group had mobile customer base of 468 million, up 44.4 million or 11 per cent from a year ago.

“In the second quarter, the Group delivered a resilient set of results. In Singapore, we gained mobile market share. Optus’ focus on customer experience and yield management delivered stable earnings in a challenging market. Our associates, AIS, Telkomsel and Globe, had another quarter of solid performances,” said Chua Sock Koong, CEO of SingTel Group.

In Singapore and Australia, SingTel implemented sustainable data pricing structure to fund network investments and meet customer demand for higher speeds and better user experience.

Bharti Airtel’s pre-tax contribution declined 17 percent to S$109 million, partly due to the weaker Indian Rupee, which depreciated 19 percent against the Singapore Dollar. In Indian Rupee terms, Airtel South Asia delivered a 14 per cent revenue growth and EBITDA grew a lower 3 per cent, affected by higher network related costs and access charges. In US Dollar terms, Airtel’s African operations reported a 10 per cent increase in EBITDA, driven by continued customer growth and higher minutes of use. Higher depreciation and financing charges led to a decline in overall pre-tax contribution from Airtel.

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