Google Advertisement
Singapore, August 14, 2026 – Singtel, Southeast Asia’s largest telecom operator, reported a dramatic 71.6 percent plunge in first quarter net profit to S$818 million, underscoring the company’s reliance on overseas growth engines as its Singapore consumer business continues to face relentless competition.
The sharp decline was primarily due to the absence of last year’s extraordinary gains from the partial sale of its stake in Bharti Airtel, which had boosted earnings to S$2.88 billion.
Excluding those one off items, however, underlying net profit rose 21 percent to S$831 million, supported by stronger contributions from regional associates and its digital infrastructure arm.
Operating revenue grew 4.9 percent, lifted by Optus in Australia, IT services subsidiary NCS, and Digital InfraCo. Earnings before interest, tax, depreciation and amortisation (Ebitda) rose 8.7 percent, aided by a stronger Australian dollar.
Google Advertisement
Yet in Singapore, revenue fell 3.1 percent to S$901 million, reflecting what management described as “continued intense price competition.”
Mobile service revenue in the domestic market dropped 4 percent, driven by lower average revenue per user.
Ebitda in Singapore declined 4.6 percent to S$363 million. Chief executive Yuen Kuan Moon acknowledged the persistent pricing pressures but pointed to the company’s tri-brand strategy Singtel, Gomo, and Hi! as a way to target different customer segments and defend market share.
Regional associates provided a brighter picture.
Airtel’s contribution rose 15.9 percent, while Thailand’s AIS surged 32.7 percent on the back of mobile and broadband growth, cost discipline, and lower depreciation.
Overall, post tax contributions from associates increased 16.1 percent to S$543 million.
Optus and NCS also delivered improved performances, bolstered by currency tailwinds.
Digital InfraCo, Singtel’s fast-growing infrastructure unit, reported revenue growth of 18.9 percent, led by Nxera data centers and cloud services.
Ebitda jumped 20.8 percent to S$70 million.
Nxera’s new DC Tuas facility in Singapore began operations earlier this year, benefiting from surging demand for AI and cloud capacity.
Management has signaled ambitions to unlock further value from these assets, with a potential dual listing of Nxera on the Singapore Exchange and Nasdaq under consideration.
Investors reacted cautiously. Singtel shares slipped 0.7 percent to S$4.26 in midday trading, paring earlier losses.
Analysts noted that while regional and digital infrastructure businesses are showing resilience, domestic headwinds remain a drag on sentiment.
The results highlight a two-speed story weakness in Singtel’s Singapore consumer unit, offset by robust growth in regional associates and digital infrastructure.
Sustaining dividends will hinge on underlying earnings, which remain solid.
But with price wars eroding margins at home, Singtel’s future growth narrative increasingly rests on regional expansion and infrastructure bets.
At a time when telecom operators worldwide are grappling with commoditised mobile services, Singtel’s pivot toward digital infrastructure and overseas markets may prove decisive.
The challenge will be balancing that growth with the need to stabilise its core Singapore business.
