Friday, May 15, 2015

Moody's: Singtel's FY2014-2015 results support its Aa3 rating

Moody's: Singtel's FY2014-2015 results support its Aa3 rating

[SINGAPORE] Moody's Investors Service says Singapore Telecommunications Limited's (Singtel's) FY2014-2015 results are "in line with expectations" and support its Aa3 rating and stable outlook.
"Group revenues for FY2014-2015 grew by 2.2 per cent to S$17.2 billion mainly buoyed by higher equipment sales in Singapore and Australia as well as higher digital revenues. In constant currency terms the revenue growth was 4.8 per cent (year-on-year)," said Nidhi Dhruv, a Moody's assistant vice president and analyst, and lead analyst for Singtel.
According to the Moody's report, revenue growth - in Australian dollars - for its Australian subsidiary, SingTel Optus, was better than expected at 11 per cent (year-on-year) for Q4 FY2015, "mainly on account of stronger equipment sales, expanded mobile subscriber base and ARPUs (average revenues per user)."
"We expect Singtel's revenues to grow in 2.0-3.0 per cent in FY2015-2016. Furthermore, with over 65 per cent of Singtel's earnings (on a reported basis) derived from outside Singapore, the company will continue to be exposed to currency fluctuations," Moody's said.
Source: Moody's

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