SingTel revenues to deteriorate on almost all fronts

Single-digit declines forecasted for major segments.

Here's more from OCBC:

2Q13 results mostly in line. SingTel reported its 2QFY13 revenue easing 0.8% YoY (but +0.9% QoQ) to S$4572.0m, underpinned by strong operating performance from Singapore and its regional mobile associates despite the impact of weaker regional currencies. Reported net profit fell 1.6% YoY and 8.2% QoQ to S$867.7m, while underlying net profit rose 0.1% YoY and 4.2% QoQ to S$886.0m. 1H13 revenue fell 1.2% to S$9105.0m, meeting 48% of our FY13 forecast, while core earnings eased 1.3% to S$1736.0m, or 45% of estimate. SingTel has also declared an interim dividend of S$0.068/share, or a payout of 62% of underlying earnings.

Guiding for revenue decline in FY13. Going forward, SingTel now expects consolidated revenue to see single-digit decline (versus growth previously), with EBITDA remaining stable. Citing increased competition in Australia, SingTel is also guiding for Australia’s revenue to decline by mid single-digit this FY, versus single-digit growth previously, although management still expects EBITDA to remain stable. Other deteriorations in outlook include guiding for Group Consumer and Group Mobile revenues to decline by mid-single digit level (versus low single-digit growth
previously). Nevertheless, it has kept its free cashflow guidance to remain around S$2.6b; capex for Singapore to be around S$950m and Australia around A$1.1b. Lastly, it continues to expect ordinary dividends from its regional mobile associates to grow.

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