SingTel posts higher profit announces share buyback and expanded asset recycling

[SINGAPORE] Singapore Telecommunications (SingTel) on Thursday reported a 9% increase in full-year profit, supported by robust results from its Australian arm Optus and regional associate Bharti Airtel. The company also unveiled a S$2 billion (US$1.55 billion) share buyback programme to be executed over the next three years.

The buyback plan signals SingTel’s confidence in its financial position and reinforces its commitment to shareholder returns. Analysts say the move is in line with a wider industry trend, as telecom operators increasingly tap into strong cash flows to reward investors amid rising demand for digital services.

Southeast Asia’s largest telecom operator posted an underlying net profit of S$2.47 billion for the year ended March 31, up from S$2.26 billion the previous year. However, the result slightly missed the S$2.56 billion forecast by Visible Alpha analysts.

Optus, SingTel’s Australian subsidiary, recorded a 5.7% increase in annual earnings, driven by stronger performance in its core mobile business.

Despite facing regulatory hurdles and intensifying competition, Optus has shown resilience through sustained investments in network upgrades and customer engagement initiatives. These efforts have helped it close the performance gap with Australian market leader Telstra.

Meanwhile, contributions from SingTel’s regional associates grew 13% post-tax, led by Bharti Airtel in India. Airtel nearly doubled its quarterly profit, benefitting from higher tariffs and a growing subscriber base.

"Despite the positive results, macroeconomic uncertainties and geopolitical tensions continue to weigh on the industry, especially through volatility in tariff regimes," said Group CEO Yuen Kuan Moon in a statement.

Analysts caution that while telecom providers like SingTel are generally shielded from direct tariff effects, they remain exposed to broader economic pressures. Factors such as rising inflation and shifts in global trade policies could dampen consumer sentiment, particularly in emerging markets where Airtel has significant operations.

SingTel noted that while its core services business is not directly impacted by tariffs, any trade-related disruptions could indirectly affect demand through weaker consumer and business confidence.

Looking ahead, SingTel expects its earnings before interest and taxes (EBIT), excluding associate contributions, to grow by a high single-digit percentage in fiscal 2026. EBIT climbed 20% in the fiscal year just ended.

The company’s guidance reflects cautious optimism, underpinned by continued investment in 5G infrastructure and enterprise digital solutions. Strategic partnerships, especially with Airtel’s growth in Africa and Southeast Asia, are expected to support earnings amid potential slowdowns in domestic markets.

SingTel also announced it had surpassed the halfway mark of its S$6 billion asset recycling goal following last week’s sale of a 1.2% stake in Airtel for S$2 billion. It has now raised the target to S$9 billion.

“Our disciplined capital management has enabled us to increase returns to shareholders,” Moon added. SingTel declared a final dividend of 10 Singapore cents per share, up from 9.8 cents last year.