3Q21 Outlook Q&A: SingTel

[Paul]

Questions:

1. Singtel profit dropped significantly in recent year. Do you thk singtel can turn profitable soon? how many year it need? is it singtel still can consider as Div stock?

SingTel is profitable but suffered losses because they wrote-off digital investments. So the company will return to profit. We can consider SingTel a dividend yield stock, now around 4% yield.

2. For Singtel, it is facing stiff HP subscription competition in Singapore, like from TPG. Does it face the same kind of competition in it overseas’s businesses?

It is a mixed bag. Competition has resurrected in Philippines with new 3rd operator. Indonesia only three operators but competition intensified when two small players aggressive competed with SingTel (or Telkomsel) outside Java islands. The situation in India is improving after major price war over the past two years. Prices are recovering.

But COVID-19 has larger impact ow because in emerging (and poorer) countries, prepaid is key product. If economy is poor there will be less reloads and talk time because it is a pay as you use product.

 

 

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