Singtel launches $2b share buyback as full-year profit swells to $4.02b on one-off gains
Excluding one-off gains, Singtel's underlying net profit rose by a 9 per cent to $2.47 billion. ST PHOTO: TARYN NG
Singtel launches $2b share buyback as full-year profit swells to $4.02b on one-off gains
SINGAPORE - In its first such move, Singtel on May 22 announced it will buy back up to $2 billion in shares over three years, as it reported net profit jumped four times to $4.02 billion.
However, in announcing its full-year results for the financial year ended March 31, the telco noted that underlying net profit rose by a more moderate 9 per cent to $2.47 billion.
The big boost to net profit came from a net exceptional gain of $1.55 billion, mainly from the partial divestment of its Comcentre headquarters, compared to a net exceptional loss of $1.47 billion a year ago.
Singtel also noted that net profit would have increased 11 per cent year-on-year if currency fluctuations were taken out of consideration.
It said the underlying net profit - which the group's core dividend is based on - was driven by robust performance from its Optus unit in Australia, technology consultancy NCS and regional associates Airtel and AIS.
Operating revenue remained steady while earnings before interest, taxes, depreciation and amortisation grew 5 per cent.
Earnings before interest and taxes at Optus saw a 55 per cent increase from improvements in its mobile business and cost management, Singtel said.
Continued inprovements in delivery margins and cost optimisation also drove NCS' earnings before interest and taxes up 39 per cent.
Singtel proposed a dividend of 10 cents per share, comprising 6.7 cents in core dividend and 3.3 cents in a value realisation dividend introduced in May 2024 to return excess capital to share holders.
Meanwhile, funding for the share buybacks will be underpinned by excess capital from the group's asset recycling proceeds, Singtel said.
In May 2024, Singtel set a mid-term asset recycling target of $6 billion under its Singtel28 growth plan which it is now raising to $9 billion.
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