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| SINGAPORE (Thomson Financial) - Singapore Telecommunications Ltd. (SingTel), Southeast Asia's biggest telecommunication player, is expected to post flat earnings in the year to March 2008 as contributions from its regional associates will be dented by the strong Singapore dollar, analysts said Friday
The company's aggressive efforts to boost market share at home also likely constrained the profitability of its domestic operations, they said Based on a Thomson Financial poll of 13 analysts, SingTel's full-year net profit should average S$3.77 billion, little changed from S$3.78 billion a year ago. The company will announce its financial results next Wednesday "Growth from associates will not be as strong," said Carey Wong, analyst at OCBC Investment Securities. "The foreign exchange (rate) may be a problem because with the Singapore dollar up so much, it is definitely going to erode contributions from associates," said Wong. SingTel has six regional mobile associates: India's Bharti Airtel, Indonesia's Telkomsel, the Philippines' Globe Telecom Inc., Thailand's Advanced Info Service, Pakistan's Warid Telecom and Pacific Bangladesh Telecom Ltd. These associates accounted for 53 percent of its underlying profit in the third quarter Contributions from associates may be lower when translated into Singapore dollars. The local currency has been appreciating faster than its counterparts in Asia as local authorities have tightened monetary policy twice since October 2007 to curb soaring inflation. Wong expects SingTel's net profit to fall to S$3.52 billion As regional markets mature, the regional units will find it increasingly tougher to grow their subscriber base, raising questions about the sustainability of strong earnings. "The penetration rate is going up fast," said Wong. "The quality of earnings - the average revenue per user (ARPU) - from developing countries as not as high" as in more mature markets, he said Still, there could be some star performers among the regional units, like Bharti. "I think Bharti will be the key anchor for the (earnings) growth," said Khoo Chen Hsung, an analyst at CIMB-GK Research Bharti Airtel, the largest telecommunications company in India where SingTel has a 30.5 percent stake, more than doubled its year to March net profit to 63.95 billion rupees ($1.53 billion) as the number of its mobile users grew 65 percent to 64 million Globe Telecom Inc., a 44.5 percent-owned SingTel associate, may also boost its contribution after recording a 32-percent increase in first quarter to March earnings, largely due to lower financing costs incurred. As for Telkomsel, analysts said future contributions from this 35-percent owned SingTel associate may be crimped by growing competition in Indonesia. Telkomsel is a unit of Indonesia's largest telecommunications company, PT Telekomunikasi Indonesia "Telkomsel will be hit because of the price war in Indonesia and the capacity constraints they are facing," said Sachin Mittal, an analyst at DBS Vickers Securities. "We expect Telkomsel prices to come down more from current levels and their earnings growth will slow down." Operations in the more mature markets of Singapore and Australia, where mobile penetration rates are high, should account for the bulk of sales but will have lower profit margins, analysts said. In its home operations, SingTel's margins will be eroded by its aggressive bid to win additional market share, said Khoo Chen Hsung, an analyst at CIMB-GK Research "They are trying to be the market aggressor and they are spending to gain market share," said Khoo Khoo said he expects EBITDA (earnings before interest, tax, depreciation and amortization) margins for Singapore and Australia to fall 1 percentage point to 30.8 percent compared to year-ago levels SingTel's earnings story will most likely be the same in the current financial year, but Globe Telecom may overtake Telkomsel as the second-biggest earnings contributor among its regional associates, analysts said. ($1 = S$1.36, 41.76 rupee) pearl.bantillo@thomsonreuters.com MMMM |
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Are we looking at 3.5+ on Monday ??
Hammer already.
No wonder the volatile movt...."Singtel is deeply disappointed with the Central Jakarta District Court's ruling to uphold the KPPU decision"....
Slamp.....
Accumulate if you can afford to hold 6-8 mths...you will be rewarded at this price ...cheers !!!
Stupid AK again, missed the boat, ha ha Q at 3.63 after 1630. Went to peow SGX last 30sec but ot no avail. Ok lah another good lesson day loh. Got Golden Agri as conso loh. 3m Toto kena leow, chiak. Cheers.
What a rebound from 3.66 to 3.71 !
Ah yoh yoh, out of AK forecast dropping range of 3-5 cts below 3.72. Hmmm, seems like it will slide further during late show time, as now EU opened Red. Stupid AK, no brain, went to buy last week, sigh.
Hopefully...
This burger never fails to give div twice yearly. This time round remains same, but qty may be diff.
May be no dividends this time......
=DJ THE SKEPTIC: SingTel Can Gain From Bharti''s African Venture (2008/05/09 15:19PM)
By Andrew Peaple A DOW JONES NEWSWIRES COLUMN
BEIJING (Dow Jones)--Singapore Telecom''s shareholders are worried about what Bharti Airtel''s African ambitions mean for them.
But aside from missing out on a special dividend next week, there''s not much to be afraid of because SingTel can afford to be in the mix.
Bharti, which is 30.5% owned by SingTel, is making an ambitious bid for South Africa''s MTN. Expected to be at least $19 billion, for a 51% stake, this will be the biggest ever overseas acquisition by an Indian company.
Bharti is going to need some help though, which it is likely to get from SingTel.
The Indian company can reportedly raise around two-thirds of the cash it needs through new borrowing, but about $7 billion of funding may have to come through a new share issuance by Bharti, or SingTel stumping up some cash of its own.
Either way, worries that Bharti may dilute SingTel''s position, or draw on too much of SingTel''s resources, have seen SingTel''s stock down 5% since the deal was first mooted publicly. That''s compared to a 2.5% fall for the Straits Times Index - in which SingTel is the largest component.
Certainly much remains to be answered, but SingTel investors should see the bright side.
Bharti is the single biggest contributor to analysts sum-of-the-parts valuations on SingTel, and an expansion into Africa suits the Indian company well strategically. MTN already has 68 million customers, and with the low tariff, high volume model that Bharti perfected in India customer growth could pick up sharply.
A presence in Africa through Bharti will help SingTel expand its geographic range to a part of the world it has had its eyes on for some time.
Moreover, if Bharti does issue more capital to fund the deal as is expected, that offers SingTel a chance to up its stake - also a move it has been mulling for a while.
Certainly funding the deal in this indirect way, rather than by taking a direct stake in MTN alongside Bharti, is more likely given SingTel''s generally cautious culture.
But there doesn''t seem much doubt that SingTel, with its low 26% gearing ratio, can afford to fund at least a part of the $7 billion Bharti may need - like the $2.1 billion that would ensure SingTel''s 30.5% holding remains undiluted.
Bharti, or SingTel, may fall back on the resources of Singapore''s giant sovereign wealth fund, Temasek, which currently owns around nearly 55% of Singtel.
But without doing so, SingTel can find about half of that $2.1 billion just in funds that are currently expected to go towards a special dividend to shareholders, when the company reports its full-year results next Wednesday.
The special dividend cost the company about $1.1 billion last year, and though many analysts expect it to be repeated, SingTel hasn''t promised anything.
Shareholders may find that the dividend is worth missing out on this time.
This service can get from all online trading securities, can ask your broker. But I must say useful as a guide only, there are many people who does not Q, there are also fake Q.
Cheers!
taybc1071 ( Date: 09-May-2008 09:47) Posted:
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| Bid Vol | Bid | Ask | Ask Vol |
| 1,197,000 | 3.660 | 3.670 | 96,000 |
| 1,998,000 | 3.650 | 3.680 | 1,222,000 |
| 879,000 | 3.640 | 3.690 | 2,008,000 |
| 539,000 | 3.630 | 3.700 | 938,000 |
| 704,000 | 3.620 | 3.710 | 1,237,000 |
| 1,087,000 | 3.610 | 3.720 | 866,000 |
| 499,000 | 3.600 | 3.730 | 813,000 |
| 36,000 | 3.590 | 3.740 | 422,000 |
| 130,000 | 3.580 | 3.750 | 450,000 |
With number portability, people are more willing to switch telcos so they are not locked into a relationship with one company.
So telcos now have a better level playing field to compete against one another. They have to compete by pricing and service.
XiZi88 ( Date: 09-May-2008 09:50) Posted:
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Oop! 3.66 .....
Bought few multiple of 5 leow. OK lah, will reserve cash for another 5 for this afternoon show time. Best it breaks the magical no of 3.68, from our forumers. He he. No show now, go for early lunch.
Bid $3.68 , sell $3.69 now.
Farmer ( Date: 09-May-2008 10:09) Posted:
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Good try AK! You can Q at 3.68 the magical no?
I think the downside have got legs......Indonesia court verdict on Tamasick anti competition monopoly due on 13 May.......Bahati's MTN bid, market worry of over price........Open Net's huge capital investment but return will be small/slow.......Intensive competition with rival once number portable in force.........Optus's broadband bid subject to Aust. govt decision.......just add on if you can think of more.....
What's the trading price now???
AK_Francis ( Date: 09-May-2008 09:31) Posted:
|
| Bid Vol | Bid | Ask | Ask Vol |
| 1,225,000 | 3.700 | 3.710 | 1,432,000 |
| 978,000 | 3.690 | 3.720 | 1,901,000 |
| 1,099,000 | 3.680 | 3.730 | 1,080,000 |
| 467,000 | 3.670 | 3.740 | 625,000 |
| 898,000 | 3.660 | 3.750 | 639,000 |
| 1,376,000 | 3.650 | 3.760 | 551,000 |
| 766,000 | 3.640 | 3.770 | 748,000 |
| 83,000 | 3.630 | 3.780 | 874,000 |