By P.R. Venkat


Singapore Telecommunications Ltd.'s profit rose significantly in the second half after the company posted a divestment gain.

Net profit for the second half ended March came in at 995 million Singapore dollars (US$724.8 million) compared with S$88 million in the same period last year, Singtel said Friday.

During the period, the company had recorded a divestment gain from the sale of its 70% stake in Australia Tower Network.

Revenue, however, fell 6.5% to S$7.69 billion due to lower equipment sales, which were affected by handset shortages, and lower contributions from its Pay TV unit.

For the full fiscal year, the telecom company posted a net profit of S$1.95 billion on S$15.34 billion in revenue.

The board has proposed a dividend of 4.8 Singapore cents per share, representing a payout ratio of 80% of underlying profit.

"The macro economic and geopolitical outlook remains uncertain given tensions such as the Ukraine-Russia conflict, supply chain disruptions, a rising inflation and interest rate environment and the prospect of protracted economic stagnation," Singtel said.

The group is expected to benefit from the recovery in international travel as borders reopen post-Covid.


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


(END) Dow Jones Newswires

05-26-22 1952ET