Singapore’s largest telco eyes higher 2026 earnings as Optus rebounds and Airtel surges.
Singapore Telecommunications (Singtel) has reported a 14 per cent rise in underlying profit for the first half of fiscal 2025, driven by strong performances from its Australian subsidiary Optus and regional associates such as Airtel and AIS. The growth comes despite macroeconomic challenges and ongoing operational issues at Optus.
Regional Strength Drives Growth
Singtel posted an underlying net profit of S$1.35 billion (US$1.04 billion) for the six months ending September 30, up from S$1.19 billion a year ago. The results were slightly below the Visible Alpha consensus estimate of S$1.37 billion but reflected broad-based growth across its regional businesses.
Post-tax contributions from associates, including India’s Bharti Airtel, Indonesia’s Telkomsel, and Thailand’s AIS, rose 12 per cent to S$920 million. Airtel saw an 89 per cent surge in quarterly profit as users upgraded to higher-margin 4G and 5G plans, while AIS achieved stronger earnings through solid revenue growth and cost control.
Group CEO Yuen Kuan Moon said the results highlight Singtel’s “positive momentum across our diversified portfolio,” noting that regional diversity has lent “stability to the group’s performance” amid uncertainty.
Optus Recovery Despite Setbacks
Singtel’s Australian arm Optus recorded a 2 per cent rise in operating revenue and a 27 per cent increase in EBIT, driven by mobile postpaid growth and a new network-sharing deal introduced in January.
However, Optus’ reputation took a hit after a major outage in September that disrupted emergency services and affected hundreds customers nationwide. The company said investigations into the incident are still ongoing.
“Since the recent Triple Zero outage, we have been working with the Optus board and management to improve operational resilience and ensure Optus does right by its customers,” said Mr Yuen.
Expanding Digital Infrastructure Through Nxera
Singtel expects to strengthen its digital infrastructure business through Nxera, its fast-growing data centre and connectivity arm. The company projects that Nxera’s EBITDA will grow by over 20 per cent annually for the next four years, supported by new operational data centre capacity.
Yuen said the company’s “growth engines will change the complexion of the business in the medium term” as Singtel continues to scale its digital ventures.
Stable Domestic Operations, Modest Revenue Decline
Singtel’s total operating revenue slipped 1.2 per cent to S$6.91 billion, mainly due to the strong Singapore dollar. However, in constant currency terms, operating revenue, EBITDA, and EBIT grew 1.9 per cent, 4.9 per cent, and 14 per cent, respectively.
In Singapore, performance remained steady. Gains in SME and enterprise connectivity offset weaker consumer mobile revenue, which fell 10 per cent due to intense competition and lower roaming demand. The local EBIT remained stable, aided by lower depreciation and amortisation expenses.
Dividend and Future Outlook
Singtel declared an interim dividend of 8.2 Singapore cents per share, up from 7 cents last year. Looking ahead, the group forecasts fiscal 2026 operating earnings (EBIT) for its core units to rise by between the high single digits and low double digits, excluding contributions from regional associates.
Yuen reaffirmed that Singtel’s geographic and business diversification will continue to provide “stability and sustainable growth” even as macroeconomic challenges persist.
Singtel’s latest earnings showcase resilience amid headwinds, powered by regional growth, digital expansion, and steady performance across core markets. For Southeast Asia, the results underline how strategic diversification and infrastructure investment can anchor profitability in a volatile global telecom landscape.
Sources: CNA (2025) , Reuters (2025)
Keywords: Singtel Earnings, Optus Growth, Airtel Profit, Telecom Industry, Regional Associates, Singapore Market
