Singtel 9MFY3/17

·9MFY17 core earnings are within expectations

·3QFY17 core earnings were up 4.2% YoY (+3.6% YTD) on lower financing cost and stronger associate contributions 

·3QFY17 core EBITDA was stable YoY (-1% QoQ), supported by cost rationalisation initiatives, notwithstanding the topline pressure (-2% YoY) from stronger competition affecting Optus. On a constant currency basis (AUD gained  3% QoQ against the SGD), group revenue would have dipped 4% YoY. 

· Regional associates remained the bright spot with contributions up 3% YoY in 3QFY17 (+ 9% YTD), led by Telkomsel (+31%) which offset the intense price- focused competition by new 4G entrant, Reliance Jio, affecting Airtel (-27% YoY) 

I believe market is expecting Singtel to spin off NetLink Trust and this will create a special dividend. I like this business, superior cash flow and debt level is not as high as its counterparts in Singapore market. In the near future, I will definitely attend their AGM and question how the CEO deploys the cashflow. It is also not ideal to leave too much cash in the company pocket and spend unwisely to fatten the management's purse is not a good thing. I will like Singtel to issue a higher payout or acquire selective telco/companies.

I just check SGX platform and Singtel has purchased 232,563 shares on 10/2/2017. Good stuff!

I hope Temasek will "Make Singapore Great Again"!