By P.R. Venkat

Singapore Telecommunications Ltd. swung to a profit in the first half of its fiscal year mainly to lower exceptional losses, but warned that the overall business environment remains challenging due to Covid-19.

Net profit for the first half ended September came in at 466.1 million Singapore dollars (US$345.4 million) as Singtel didn't have to make a provision for losses for its Indian associate, the telecommunications firm said Thursday.

Singtel posted a loss of S$127 million in the same period last year.

The company's fiscal year runs April to March.

Operating revenue during the period was down 10% on year to S$7.43 billion mainly due to weakness in Australia and Covid-19 pandemic that saw reduction in roaming and prepaid revenue.

"In view of the continued uncertainty in the economic environment, the group will not provide guidance on the outlook," Singtel said.

It said that dividends from the regional associates for the year ended March are likely to be about S$1.3 billion.

Singtel expects its capital expenditure including that for 5G networks is likely to be around S$2.2 billion.

Write to P.R. Venkat at venkat.pr@wsj.com

(END) Dow Jones Newswires

11-11-20 1829ET