Singtel Profit Jumps 44% Following Bharti Airtel Stake Sale
Singapore Telecommunications (Singtel) posted a 43.5% rise in third-quarter net profit, reaching S$1.89 billion (US$1.50 billion) for the period ending Dec. 31. The result was bolstered by a massive one-time gain from the partial divestment of its stake in Indian associate Bharti Airtel, signaling a shift in the group’s capital allocation strategy.
The telco’s bottom line was significantly impacted by a net exceptional gain of S$1.15 billion, largely derived from the Airtel stake sale. Beyond the one-time windfall, Singtel’s underlying net profit grew 9.5% to S$744 million. This organic growth was fueled by strong operational performances from its regional associates, including Airtel and Thailand’s AIS.
Group operating revenue remained relatively flat, edging up 0.9% to S$3.66 billion. While traditional mobile revenue remains a core component, the company is increasingly focusing on diversifying its portfolio toward high-growth digital assets to offset mature market conditions in the mobile sector.
Expansion into Digital Infrastructure
In a move to modernize its asset base, Singtel recently increased its stake in ST Telemedia Global Data Centres via a consortium led by U.S. private equity firm KKR. CEO Yuen Kuan Moon stated that the investment significantly advances the company’s strategy to scale its digital-infrastructure growth engine.
The strategy reflects a broader trend among regional telecom leaders to recycle capital from minority stakes in traditional carriers into controlled infrastructure assets. By leveraging partnerships with global investors like KKR, Singtel aims to capitalize on the rising demand for cloud computing and AI-ready data centers across Asia.
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