Singtel's New Chapter: Profit Growth and Strategic Partnerships

Singapore-based telecommunications company Singtel is paving the way for sustained growth with its recent Q3 results. The company's impressive performance is driven by strong contributions from its Australian subsidiary Optus and a strategic partnership with India's Bharti Airtel $BHARTIARTL.NS. These results underline Singtel’s long-term commitment to digital transformation and innovation across the Asian market.

Profit Growth Driven by Optus  

Singtel reported a rise in its basic net profit for the quarter ended December 31, reaching S$680 million compared to S$559 million in the same period last year. A significant contributor to this robust performance was the Australian subsidiary Optus, which has shown a steady increase in revenue:

1. Revenue Growth from Optus. Optus recorded a 3% increase in revenue, reaching S$1.86 billion (approximately S$1.39 billion in equivalent dollars).  

2. Market Strength. Strong performance from Optus continues to enhance the overall profitability of the company.

Impact of the Bharti Airtel Partnership  

The strategic collaboration with Indian telecommunications leader Bharti Airtel also played a crucial role in the company’s results. The partnership drove nearly a sixfold increase in consolidated net profit during Q3, supported by several key factors:

- One-off gains that boosted the overall financial performance  

- Increased tariffs, which led to higher revenue per user  

Additionally, Singtel holds a 28.7% stake in Bharti Airtel, underscoring the strategic importance of this collaboration within its growth framework.

Investments and the Drive for Digital Transformation  

CEO Yueng Kuan Moon emphasized the company’s optimistic outlook for long-term growth in Asia, stating about the rising demand for digitalization and supporting infrastructure. As part of its strategic roadmap, Singtel is investing in the following key areas:

1. Enhancing digital service efficiency  

2. Strengthening business processes through IT system upgrades  

3. Expanding its regional partner network to support digital transformation

Furthermore, Singtel announced plans to distribute a total ordinary dividend of approximately 16.5 Singapore cents per share, and it forecasts capital expenditures of around S$2.8 billion for the 2025 financial year, highlighting its commitment to future growth and technological innovation.

Conclusion  

Singtel is demonstrating robust growth in net profit, driven by the stellar performance of its Optus unit and the strategic collaboration with Bharti Airtel. The company’s continued investments in digital infrastructure and digitalization initiatives are securing its position as a leader in the telecommunications sector. These developments are setting the stage for sustainable growth and further reinforcing the company's market leadership in an increasingly dynamic industry.