Friday, February 12, 2016

SingTel up despite fall in quarterly earnings

Singapore Telecommunications was up as high as 1.7% to $3.60 at 10.43am despite reporting a 1.7% decline in its 3Q earnings from year ago.

Investors are probably worried that currencies, especially the Australian dollar, have fallen sharply against the Singapore dollar in recent months.

If the Australian dollar had not fallen 8% versus the Singapore dollar during the quarter, earnings would have risen 1%, SingTel says.

In its guidance, SingTel expects its mobile service revenue to grow in "low single-digit" levels in both Singapore and Australia for the rest of the year, indicating steady performance in mature, nearly-saturated markets.

In comparison, the Straits Times Index is up 0.23%.

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