Keppel : Telecommunications & Transportation Ltd Unaudited Results for the Second Quarter and Half Year Ended 30 June 2018

The Directors of Keppel Telecommunications & Transportation Ltd advise the following results of the Company and of the Group for the second quarter and half year ended 30 June 2018.

These figures have not been audited.

2Q & 1H 2018 RESULTS HIGHLIGHTS

Keppel T&T nets higher profit of S$26.0 million for 2Q 2018

Keppel T&T reported a net profit of S$26.0 million for 2Q 2018, up 138% from S$10.9 million* for 2Q 2017. On a half-year basis, net profit grew 60% yoy to S$35.4 million for 1H 2018, from S$22.2 million* for 1H 2017. The increase was due mainly to dilution gain following Keppel DC REIT's private placement exercise, partly offset by higher operating costs to support new developments in the data centre and logistics businesses.

Revenue decreased by 5% yoy to S$45.3 million for 2Q 2018 due mainly to lower project management fee income from the Data Centre Division and lower container throughput at Keppel T&T's ports in China. This was partly offset by higher revenue from warehousing and channel management business in Southeast Asia. 1H 2018 revenue remained stable at S$88.1 million, compared to S$88.3 million for 1H 2017.

Mr Thomas Pang (冯廷辉), CEO of Keppel T&T, said, 'Our efforts to transform the Logistics business and grow the Data Centre business are progressing on track, as we position Keppel T&T to seize growth opportunities from the digitalisation wave for long term, sustainable growth.

'We are benefiting from our business model of capturing value from data centre development, ownership and management through our collaboration with Keppel Capital's Alpha DC Fund and Keppel DC REIT. Together, we have been actively pursuing opportunities to expand our portfolio in current as well as new markets across Asia and Europe. On the Logistics front, we have further extended our service offerings beyond B2B to capture the B2C segment through our full suite of omnichannel logistics and channel management solutions.'

In the Data Centre Division, Keppel DC Singapore 4 achieved close to 60% committed occupancy upon the completion of phase 2 fit out, while Keppel DC Singapore 5 was added to the portfolio of quality data centres owned and/or managed by Keppel Data Centres. In Germany, Keppel Data Centres has partnered DE-CIX, the world's leading Internet Exchange operator to offer premium interconnection services at Keppel DC Frankfurt 1.

Through UrbanFox, the Logistics Division has been intensifying its sales efforts. Since its launch in October 2017, UrbanFox has made steady progress and secured over 110 brands for its online marketplace.

Keppel T&T achieved earnings per share of 4.6 cents for 2Q 2018 and 6.3 cents for 1H 2018, compared to 2.0 cents* for 2Q 2017 and 4.0 cents* for 1H 2017.

Keppel T&T's net asset value per ordinary share increased to S$1.54 per share as at 30 June 2018, compared to S$1.52 per share* as at end-2017. Net gearing was 0.34x as at 30 June 2018, compared to 0.38x* as at end-2017.

- End -

_{* The figures for 2017 have been restated following the adoption of Singapore Financial Reporting Standards (International) (SFRS(I)s) on 1 January 2018.}

Attachment:

Download - KTT 1H2018 Unaudited Results

For more information, please contact: