Singapore Telecommunications Posts Mixed Results with Strong Associate Performance February 25, 2026
Company Overview
Singapore Telecommunications Ltd (Singtel) is a leading telecommunications company operating across Singapore and the Asia-Pacific region through its domestic operations and strategic regional associates. The company provides mobile, fixed-line, and data services, with significant investments in regional telecommunications operators including Advanced Info Service (AIS) in Thailand and Airtel in India.
Financial Performance Analysis
Singtel’s third-quarter FY26 results were in line with market expectations, with nine-month revenue and EBITDA reaching 73% and 74% of full-year forecasts respectively. Profit after tax and minority interests (PATMI) exceeded estimates at 81% of FY26 projections, primarily driven by robust performance from associate Advanced Info Service. The underlying net profit grew 14.2% year-on-year to S$744 million, though weaker Indian and Indonesian currencies reduced this growth by 4.6%.
Strong Associate Performance Drives Growth
he standout performer was Advanced Info Service, whose contribution to Singtel’s earnings surged 47.8% year-on-year to S$125 million in the third quarter. This exceptional growth stemmed from a 5.5% year-on-year increase in blended average revenue per user (ARPU) to 240 baht, alongside a 2.2% improvement in subscriber numbers to 46.7 million. The performance was further enhanced by a 9% reduction in depreciation expenses and support from a 4.2% appreciation in the Thai baht.
Overall, associate earnings climbed 23% year-on-year to S$529 million, with Airtel also contributing positively with 27.3% growth.
Domestic Challenges Persist
Singapore’s mobile segment remained the weakest performer, with revenue declining 10.8% year-on-year to S$289 million. This weakness pulled Singapore EBITDA down 10.7% to S$336 million. The domestic mobile business continues to face headwinds from intensifying competition, particularly in eSIM pricing and roaming services. Falling roaming revenue resulted from lower wholesale volumes, increased bundling of roaming packages, and heightened eSIM competition.
Investment Outlook
Phillip Securities Research maintains its ACCUMULATE recommendation with an unchanged target price of S$5.35. The research house expects earnings growth to be supported by ongoing mobile price recovery across regional associates. Looking ahead, the growth narrative is expected to shift towards data centres following the acquisition of ST Telemedia Global Data Centres (STT GDC), positioning Singtel for medium-term expansion in this high-growth sector.
Frequently Asked Questions
Q: What was Singtel’s financial performance in 3Q26?
A: Singtel’s 3Q26 results were within expectations, with 9MFY26 revenue and EBITDA at 73%/74% of FY26 forecasts. PATMI exceeded estimates at 81% of FY26 due to stronger performance from associate Advanced Info.
Q: Which segment performed best for Singtel?
A: Regional associates performed strongest, with earnings rising 23% year-on-year to S$529 million. Advanced Info showed exceptional growth of 47.8%, while Airtel grew 27.3%.
Q: What drove Advanced Info Service’s strong performance?
A: AIS’s stellar performance came from a 5.5% year-on-year rise in blended ARPU to 240 baht, 2.2% improvement in subscribers to 46.7 million, and a 9% drop in depreciation expense, aided by Thai baht appreciation.
Q: Why did Singapore mobile revenue decline?
A: Singapore mobile revenue fell 10.8% year-on-year to S$289 million due to competition in eSIM prices and roaming, falling roaming revenue from lower wholesale volumes, and increased bundling of roaming services.
Q: What is Phillip Securities Research’s recommendation?
A: Phillip Securities Research maintains an ACCUMULATE recommendation with a target price of S$5.35, citing earnings growth support from mobile price recovery in regional associates.
Q: What are Singtel’s future growth drivers?
A: Near-term growth is expected from mobile price recovery in regional associates, while medium-term growth will transition to data centres following the STT GDC acquisition.
Q: How did currency movements affect results?
A: Weaker Indian and Indonesian currencies reduced underlying net profit growth by 4.6 percentage points, though Thai baht appreciation of 4.2% helped Advanced Info’s contribution.
This article has been auto-generated using PhillipGPT. It is based on a report by a Phillip Securities Research analyst.
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About the author
Paul Chew
Paul has more than 25 years of experience as a fund manager and sell-side analyst. He currently covers sectors such as healthcare, electronics, telecommunications, conglomerates, small caps, and strategy.
He graduated from Monash University and has completed both his Chartered Financial Analyst and Australian CPA programme.
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