Singapore Telecommunications’ half-year net profit falls 42%

(Reuters) -Singapore Telecommunications (SingTel) reported a 42% fall in its half-year profit on Wednesday, as the firm was hurt by the absense of S$1.2 billion ($896.59 million) it had logged through the divestiture of Telkomsel shares in its prior corresponding period.

Last year, Telkomsel, the Indonesian associate of Southeast Asia’s largest telecom firm, agreed to merge with its parent’s IndiHome broadband arm in an effort to expand into Indonesia’s fixed broadband market.

SingTel’s Australian unit Optus, currently embroiled in a legal battle with the country’s competition watchdog, reported operating revenue of A$4.02 billion ($2.62 billion) during the six months, in line with A$4.02 billion reported a year ago.

“Optus and NCS drove the positive momentum, underscoring our focus on execution and operating rigour,” the group’s Chief Executive Officer Yuen Kuan Moon said.

Southeast Asia’s largest telecom firm said net profit for the six months ended Sept. 30 was S$1.23 billion, as compared to S$2.14 billion last year and missing a Visible Alpha estimate of S$1.37 billion. 

The company declared an interim dividend of 7 Singapore cents per share, higher than the 5.2 Singapore cents per share declared a year earlier.

($1 = 1.3384 Singapore dollars)

($1 = 1.5321 Australian dollars)