Singtel sees $2.3 billion impairment hit, net loss in 2024 second-half


(Reuters) -Singapore Telecommunications on Monday forecast non-cash impairment provisions of S$3.1 billion ($2.28 billion) for second-half of 2024 which would lead to the telecom giant reporting a net loss for the period.

The company also warned that it would report a lower net profit for the full-year ended March 31, 2024.

About S$2 billion of the total impairment provision originates from its mobile network operation unit, Optus’ goodwill, Singtel, Southeast Asia’s largest telecom operator, said in its filing.

An “impending deal” for Optus was recently ruled out by Singtel following reports that talks for a potential stake divestment had fallen off.

Singtel added that Optus expects a non-cash impairment provisions of S$470 million on its enterprise fixed access network assets, mainly due to weaker prospects, increased cost of capital and a bleak macroeconomic outlook.

After conducting a strategic review of its enterprise business, Optus found that it was reporting steep declines in fixed carriage revenue, in-line with an overall market decline in Australia, the Singtel filing stated.

Among other units, the Asia Pacific cyber security business is expected to report non-cash impairment provision for goodwill of S$340 million, with S$280 million of the same expected from IT service provider NCS Australia.

“Singtel is on track to pay at the upper end of its dividend policy for the financial year ended 31 March 2024,” the Singapore-based telecom firm said.

The company is scheduled to report results for the financial year ended March 31 on May 23.

In a separate announcement on Monday, Singtel said its unit Optus struck a deal with local rival TPG Telecom to provide access to its local radio network in regional Australia.

($1 = 1.3616 Singapore dollars)

(Reporting by Poonam Behura in Bengaluru; editing by Diane Craft and Aurora Ellis)

Brought to you by

Follow Us



Recent Posts

Related Posts: