Singapore Telecommunications (Singtel) announced on Thursday a $1.6 billion share buyback plan and an expanded target for monetising assets, sparking a surge in its shares to their highest in nearly nine years.
Southeast Asia’s largest telecom operator said it will buy back S$2 billion ($1.55 billion) worth of its shares over the next three years.
And after having recently sold a 1.2% stake in India’s Bharti Airtel for S$2 billion, Singtel said it raised its medium-term target for 'asset recycling' to S$9 billion, up from the S$6 billion set last year. The company said it has already achieved over half of the original goal.
Singtel shares jumped as much as 3.6% on Thursday to S$3.99, their highest level since October 2016.
Net profit for the year ended March 31 soared five-fold to S$4.02 billion, supported by one-off divestment gains and the absence of last year's S$1.47 billion impairment charge related to goodwill and Optus Enterprise's fixed network assets.
Citi analysts noted that the share buyback program was announced earlier than expected - a move likely reflecting management's confidence in its divestment pipeline.
The partial sale of Singtel's Comcentre HQ was the largest contributor to its S$1.5 billion exceptional gain for the year.
Post-tax contributions from associates climbed 13%, largely bolstered by Bharti Airtel, which nearly doubled its latest quarterly profit amid higher prices and growing subscriber numbers.
Singtel expects high-single-digit growth in earnings before interest and taxes (EBIT) for fiscal 2026 (excluding associates), following a 20% EBIT jump this year. The company also flagged potential indirect headwinds from global trade tensions, though its services-driven model shields it from the direct impact of trade tariffs.
Singtel declared a final dividend of 10 Singapore cents per share, up from 9.8 cents last year. - Reuters
