Shares in Singapore Telecommunications (Singtel) gained the most in three months after posting a 10% rise in first-half underlying net profit on Friday, and raising its forecast for annual operating earnings from its core units.
Shares rose as much as 3% in early trade, marking their biggest intraday gain since mid-August and outperforming the broader benchmark, which was down 0.4%.
Southeast Asia's largest telecom operator said underlying net profit for the six months ended September 30 was S$1.49 billion ($1.16 billion), up from S$1.35 billion a year earlier.
Bolstered by the stellar first-half showing, Singtel now expects fiscal 2027 earnings before interest and tax for the operating company, excluding contributions from regional associates, to grow in the mid- to high-single digits, up from the previously forecast low- to mid-single-digit growth.
Operating revenue from Optus, Australia's second-largest telecommunications provider, which Singtel has owned since 2001, fell 2% during the half-year, but stronger mobile performance and cost management translated into improved profitability.
Long a key earnings contributor for Singtel, Optus has faced a series of operational and reputational challenges in recent years, including cyber and network outages that sparked political and regulatory backlash.
Post-tax contributions from regional associates including India's Bharti Airtel, Thailand's Advanced Info Service (AIS) and Indonesia's Telkomsel rose 9% to S$993 million.
NCS, which offers AI, cloud, cybersecurity and other services to enterprises, reported operating earnings up nearly 16% to S$212 million. Digital InfraCo, a data center services provider, posted earnings up over 25%.
The telecom operator declared an interim dividend of 9 Singapore cents per share, up from 8.2 Singapore cents apiece last year. - Reuters
