Singapore Telecommunications (Z74) Q1 2027 earnings summary

Executive summary

• Underlying net profit rose 21% year-over-year to S$831 million, supported by strong performances from Airtel, AIS, NCS, Optus, and Digital InfraCo, and one-off investment income and related taxes.

• Net profit declined 72% to S$818 million due to the absence of last year's exceptional gains from asset sales and mergers.

• OpCo EBIT increased 10%, ahead of full-year guidance, with double-digit growth across NCS, Optus, and Digital InfraCo.

• Regional associates delivered robust PAT growth of 16%, led by Airtel and AIS, despite a S$46M adverse impact from weaker regional currencies.

• The group is executing its Singtel28 plan, focusing on digital infrastructure and disciplined capital management.

Financial highlights

• Operating revenue reached S$3,558 million, up 4.9% year-over-year; EBITDA grew 8.7% to S$1,076 million, with margin improving to 30.2%.

• OpCo EBIT rose 10.4% to S$462 million; underlying net profit up 21% (27% constant currency).

• Share of regional associates' post-tax profits increased 16.1% to S$543 million.

• Net finance income of S$38 million recorded, reversing a net finance expense last year.

• Net profit margin declined due to absence of exceptional gains.

Outlook and guidance

• FY27 OpCo EBIT growth expected between low and mid-single digits; Q1FY27 exceeded 10%.

• Continued focus on digital infrastructure growth, especially data centers and AI cloud services.

• Regional associates' dividends on track, with S$0.7B in special dividends received.

• Capex guidance at S$3.0B (core: S$1.8B, growth: S$1.2B), with no material impact from Middle East conflict.

• Ongoing execution of tri-brand strategy in Singapore to address pricing pressures.