(Reuters) – Singapore Telecommunications said on Monday it expects to report a net loss for second-half of fiscal year 2024, as it flagged exceptional non-cash impairment provisions of S$3.1 billion ($2.28 billion) for the period.
The company also warned that it would report a lower net profit for the full-year ended March 31, 2024.
About S$2 billion of the total impairment provision originates from its mobile network operation unit, Optus’ goodwill, Singtel, Southeast Asia’s largest telecom operator, said in its filing.
An “impending deal” for Optus was recently ruled out by Singtel following reports that talks for a potential stake divestment had fallen off.
Singtel added that Optus expects a non-cash impairment provisions of S$470 million on its enterprise fixed access network assets, mainly due to weaker prospects, increased cost of capital and a bleak macroeconomic outlook.
“Singtel is on track to pay at the upper end of its dividend policy for the financial year ended 31 March 2024,” the Singapore-based telecom giant said.
($1 = 1.3616 Singapore dollars)
(Reporting by Poonam Behura in Bengaluru; editing by Diane Craft and Aurora Ellis)
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