Help from Bharti and A$

SINGAPORE | TELECOMMUNICATIONS| 2H21 RESULTS 31 May 2021


 FY21 revenue met but EBITDA was below, at 91% of our FY21 estimate. Excluding exceptionals, PATMI declined 22% in 2H21.


 Bharti’s(BHARTI IN, Not Rated) turnaround and a 9% appreciation of A$ in 2H21 boosted earnings. Final DPS was slashed by 56% to 2.4 cents.


 Exceptional losses of S$1.1bn in 2H21 included impairment of S$589mn for Amobee and S$336mn for Trustwave. Hat trick of write-offs plus Hooq totalled S$1.18bn in the past two years.


 Singtel announced a new strategic direction with an emphasis on 5G consumer and enterprise in Singapore and Australia, NCS as a new engine of growth and value

unlocking of infrastructure assets. No surprises. We are wary of value-unlocking as it is unclear whether it will involve disposals or mere refinancing.


 We reduce FY22e EBITDA by 13% to factor in weaker Singapore mobile and Australia broadband earnings. Maintain NEUTRAL with SOTP TP lowered to S$2.32 from S$2.44, incorporating lower associate valuations. Outlook is sluggish with minimal growth in core operations and indifferent dividend yields of 3.7%.