Singtel Reports 9% Annual Profit Growth, Launches SGD 2 Billion Share Buyback

Singapore Telecommunications Ltd., Southeast Asia’s largest telecom operator, has reported a 9% rise in net profit for the fiscal year ending March 31, driven by robust performance from its Australian unit Optus and increased contributions from regional associate Bharti Airtel.

The company also unveiled a significant capital return strategy, announcing a SGD 2 billion (~USD 1.55 billion) share buyback program to be executed over the next three years. This signals Singtel’s confidence in its financial position and its commitment to enhancing shareholder value amidst a shifting regional telecom landscape.

Earnings Drivers and Strategic Implications

Singtel reported net profit of SGD 2.47 billion for the year, up from SGD 2.26 billion a year earlier. Although the result slightly missed analysts’ consensus forecast of SGD 2.56 billion (as compiled by Visible Alpha), it reflects solid underlying performance across its key businesses.

Optus, Singtel’s wholly owned subsidiary in Australia, saw full-year earnings rise 5.7%, driven by improved core mobile revenue and higher average revenue per user (ARPU).

Significant gains also came from its regional associate, India’s Bharti Airtel, which nearly doubled quarterly earnings thanks to tariff hikes and subscriber base expansion. This resulted in a 13% increase in post-tax contributions from Singtel’s associates.

The earnings momentum comes despite a challenging macroeconomic backdrop and intensifying competition in mobile and broadband markets across Southeast Asia and Australia.

Quick Facts:

• Ticker: STEL.SI (Singtel)
• Annual Net Profit: SGD 2.47 billion (USD ~1.9 billion)
• Buyback Program: SGD 2 billion over three years
• Optus Profit Growth: +5.7% YoY
• Bharti Airtel Contribution: +13% post-tax, driven by subscriber and pricing gains
• Fiscal Year End: March 31, 2025
• Forecast Miss: Slightly below Visible Alpha’s SGD 2.56 billion consensus

Market Response and Analyst Perspectives

The market responded cautiously to the earnings release, with Singtel shares showing modest movement, reflecting the mixed reaction to profit growth versus missed forecasts. However, analysts view the SGD 2 billion share buyback as a strong signal of capital discipline and a positive catalyst for the stock in the medium term.

Equity strategists highlighted the operational improvement at Optus, particularly after years of underperformance, as a meaningful shift. Meanwhile, the continued strength of Bharti Airtel, operating in one of the world’s fastest-growing telecom markets, reinforces Singtel’s investment strategy in high-growth regions.

Analysts also noted that the group’s capital return initiative aligns with a broader trend among Asian telecom giants to improve capital efficiency amid slowing core growth in mature domestic markets.

Key Highlights:

1. Singtel’s FY2025 net profit rose 9% to SGD 2.47 billion.
2. Optus earnings climbed 5.7%, aided by improved mobile revenue.
3. Bharti Airtel’s growth boosted associate contributions by 13%.
4. The SGD 2B share buyback program spans the next three years.
5. Full-year results slightly missed consensus, but long-term fundamentals remain strong.

Strategic Significance for Investors and the Sector

Singtel’s latest financial results reflect both stability in its core operations and growing upside from regional associates. The introduction of a sizeable share repurchase program underlines the group’s evolving capital strategy and its efforts to return value to shareholders amid changing industry dynamics.

With improved earnings contributions from Optus and Bharti Airtel, Singtel is better positioned to balance the maturity of its domestic market with exposure to emerging high-growth segments in Asia-Pacific.

As the telecom sector undergoes structural shifts — from legacy infrastructure toward digital platforms and 5G monetization — Singtel’s diversified footprint and renewed capital discipline may offer long-term strategic advantages within the global telecommunications landscape.