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Investing.com-- Singapore Telecommunications (Singtel) (SGX:STEL) on Thursday reported a 9% rise in underlying net profit, buoyed by robust contributions from Australian unit Optus, IT services arm NCS, and regional associates Bharti Airtel (NSE:BRTI) and AIS.
The telco giant also announced a S$2 billion ($1.55 billion) share buyback programme as part of a broader capital management push.
Underlying net profit for the year ended March 31 came in at S$2.47 billion, up 9% from S$2.26 billion a year earlier.
Group net profit surged more than fivefold to S$4.02 billion due to a one-off S$1.55 billion exceptional gain, largely from a partial divestment of its Comcentre headquarters.
Group CEO Yuen Kuan Moon said the results reflect strong execution of the Singtel28 strategy and “significantly restructured” operations aimed at sustainable growth.
While geopolitical risks and inflationary pressures remain, Singtel expects to benefit from growing demand for digitalisation and AI. It plans to invest S$2.5 billion in capital expenditure, including S$800 million for data centres and AI infrastructure.
Looking ahead, the company forecasts high single-digit earnings before interest and taxes (EBIT) growth for fiscal 2026.
"While tariffs have no direct impact on the Group’s business which is primarily in services, the trade conflict could affect Singtel indirectly through softer consumer and business sentiment," the company said in a statement.
Singtel’s board declared a final dividend of 10 Singapore cents per share, bringing the total annual dividend to 17.0 cents.
The newly announced S$2 billion buyback programme, to be executed over three years, is Singtel’s first under its enhanced capital return policy introduced in 2024, the company said.