Exceptional Gains Drive Record-Breaking Profit Growth
Singtel has announced an extraordinary financial performance for its first quarter, ending June 30, 2025, with net profit soaring by a staggering 317.4% to reach $2.9 billion. This monumental increase from $690 million in the previous year was primarily driven by approximately $2.2 billion in exceptional gains. The company’s exceptional gains stemmed from two key strategic moves. First, Singtel recorded a net gain of around $1.5 billion from the divestment of a partial 1.2% stake in its India associate, Airtel, which occurred in May. Secondly, a net gain of $746 million was realized from the merger of Singtel’s former associate Intouch with Thailand’s Gulf Energy Development in April. These significant one-off events provided the principal catalyst for the telco’s record-breaking bottom-line performance for the quarter.
Strong Performance from Operating Units and Associates
Even when accounting for the one-off gains, Singtel’s core business demonstrated robust health. The company’s underlying net profit, which excludes the exceptional items, still saw a solid increase of 13.9%, rising to $686 million from $603 million. This underlying growth was supported by strong performances from several of its key operating units and regional associates. Singtel’s Optus, contributor, with its earnings before interest and taxes (EBIT) rising by 36133 million due to strategic cost management and revenue growth. The technology services arm, NCS, also performed well, posting a 22% increase in EBIT driven by improved delivery margins. Furthermore, contributions from its regional associates, particularly AIS and Airtel, boosted Singtel’s share of post-tax profits by 15.4%.
Mixed Regional Results and Future Outlook
While associates like Airtel and AIS delivered strong results, with Airtel’s profit after tax jumping by 121%, the company’s regional portfolio saw mixed performance. These gains were partially offset by a decline in profits from other key associates, including Indonesia’s Telkomsel and the Philippines’ Globe, which were impacted by weaker mobile performance and soft consumer spending, respectively. Despite a largely stable operating revenue of $3.39 billion, the company remains focused on future growth. Looking ahead, Singtel has identified its burgeoning data center business as a “bright spot” for the financial year 2026, with the planned completion of new data centers in Thailand and Singapore under the Nxera brand. The company remains committed to disciplined execution and operational efficiency to drive sustainable long-term growth.
