+ Jump in Australia EBITDA. Mobile revenue was resilient, growing 5% YoY to A$1.26bn. EBITDA rose 23% YoY to S$506mn. Reasons mentioned were a cessation of fee waivers and rebates and lower bad-debt provisions. We believe the group’s S$305mn of impairments and payroll charges in 4Q21 also helped to lower its cost structure.
– Enterprise growth was sub-par. Earnings growth in the enterprise segment has been below our expectations. Despite high demand from data centres and cyber security, legacy carriage business from voice and roaming remains a drag on earnings.
The bright spots remain Airtel and Australia. We expect the corporate exercise at NCS and disposal of infrastructure assets to provide share-price catalysts in the short term.
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Our SOTP valuation is based on 6x EV/EBITDA for Singtel’s core Singapore and Australia businesses, at S$0.77/share. Associates are marked to market at S$1.75/share with a 20% discount to reflect volatility in their share prices.