SingTel Earnings: Stable Results With Optus Slightly Better, Singapore Slightly Worse

We retain our fair value estimate for narrow-moat Singtel at SGD 2.40 following the release of a third-quarter result that was broadly in line with our expectations. The stock looks fairly valued at these levels, and we suspect the company will need to show consistent earnings growth from its core operations before it will get a positive rerating. On an underlying basis, meaning constant currency and excluding the now-sold Trustwave, each third-quarter revenue, EBITDA, and operating profit were broadly flat year on year, meaning they deviated by less than one percent. Slight earnings growth from Optus and NCS was offset by earnings declines from Singtel’s domestic business.