The Positive
+ Optus mobile was relatively resilient. Australia mobile service revenue was relatively resilient, declining only 5.5% YoY at A$860mn. There was growth in the combined postpaid and SIM only plans subscriber base by 2.3% YoY.
The Negatives
– Singapore mobile ARPU still slipping. ARPU still weighed down by the absence of roaming revenue. Mobile blended ARPU is down to another record low of S$23 (-27.7% YoY) in 1Q21.
– NBN pain for Optus. Without NBN, Australia consumer EBIT fell an incredulous 82% YoY to A$41mn. Weakness was across all segments with broadband bearing the brunt, in our opinion. On-net broadband subscribers are down 65% YoY whilst burdened by high operating cost.
Outlook
The two main pressure point for SingTel is Singapore mobile and Australia broadband. We expect at least another two quarters of weak YoY operating performance.
Maintain NEUTRAL with unchanged TP of S$2.44
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Paul has 20 years of experience as a fund manager and sell-side analyst. During his time as fund manager, he has managed multiple funds and mandates including capital guaranteed, dividend income, renewable energy, single country and regionally focused funds.
He graduated from Monash University and had completed both his Chartered Financial Analyst and Australian CPA programme.
