Singtel Plans Up To $2b Share Buyback On Surge In Net Profit

Three-year programme comes as full-year profit swells to $4.02b on one-off gains

- Tay Hong Yi

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 of $4.02 billion, more than five times that of the previous year.

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 with a net exceptional loss of $1.47 billion a year ago.

It noted that net profit would have increased 11 per cent year on year if currency fluctuations were taken out of consideration.

It said that 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 (Ebitda) 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 improvements in delivery margins and cost optimisation also drove NCS' earnings before interest and taxes up 39 per cent.

It proposed a final 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 shareholders.