· Mobile data growth, ICT services and digital marketing drive growth

· Q3 net profit slides 2% to S$954 million; up 1% in constant currency terms

· Operating revenue at S$4.47 billion; up 6% in constant currency terms

· Net profit for first 9 months up 3% to S$2.93 billion despite currency headwinds

Singapore, 12 February 2016 - Singtel delivered robust core earnings for the third quarter due to growth in mobile data and ICT services. The Group's digital marketing business also gained traction, showing improvement for the quarter. However, network and spectrum investments plus costs of building core enterprise and digital capabilities, combined with currency exposure, diluted the Group's results. Net profit for the quarter slid 2% to S$954 million but would have risen 3% if not for a one-off tax credit last year and impact from Trustwave acquired in September 2015. In constant currency terms, net profit grew 1%, and would have increased 6% if adjusted for the tax credit and Trustwave. Net profit for the 9 months to date was up 3% to S$2.93 billion and up 6% in constant currency terms.

Ms Chua Sock Koong, Singtel Group CEO said, 'Innovations and investments in our core Consumer and Enterprise businesses continued to deliver. We focused on giving customers the best mobile data and entertainment experience by offering a mix of flexible data plans and differentiated content. This has seen more mobile customers in Singapore and Australia trade up to higher-tier plans.'

Increased data consumption from high usage in mobile internet and video was supported by sustained network and spectrum investments across Singapore and Australia. These investments position the Group to capture exponential data growth in a mobile-first digital world but will impact free cashflow in the near term. Singtel's 4G network has the widest coverage at 99.8%[1] in Singapore while Optus is poised to further expand its 4G coverage in regional Australia after securing the 1800MHz spectrum. Optus' 4G coverage now reaches 92% of the Australian population.

In the emerging markets, mobile data remained the key growth driver. Singtel's regional mobile associates continued to reap the benefits of aggressive investments in 3G and 4G networks and services. Despite higher depreciation and amortisation charges, the regional associates' post-tax earnings grew by 3% this quarter. Telkomsel delivered strong revenue growth with higher smartphone adoption and data consumption. AIS also launched 4G services on its recently-acquired 1800MHz spectrum and will further invest in both 3G and 4G networks.

In the Enterprise space, Singtel registered steady performance for the quarter thanks to strong ICT growth across Singapore and Australia and new contract wins in cloud computing. Trustwave established strategic partnerships with global telecom carriers including associates in the region, creating further growth paths for cyber security.

Ms Chua Sock Koong, Singtel Group CEO adds, 'We are investing significantly in our engineering talent and strengthening our core capabilities in cyber security, data analytics and cloud computing. This is helping the Enterprise business stay relevant and resilient in the face of both technology disruption and softer business sentiment.'

GROUP CONSUMER

The Consumer business in both Singapore and Australia delivered strong EBITDA growth.

In Singapore, mobile data growth remained strong as postpaid customers traded up to higher-tier plans with 26% exceeding their data bundles while more than half of prepaid customers tapped mobile data services.

The launch of data-centric SIM-Only plans in Singapore saw strong take-up, with new customers making up more than two-thirds of the new sign-ups. Non-SMS data revenues also grew, accounting for 41% of ARPU, up from 36% last year.

However, declines in roaming and IDD services and softer handset sales saw Singapore revenue drop 4% overall. Singapore Consumer EBITDA rose 9% with cost discipline and as selling costs dropped with lower re-contracting activities.

The Group deepened efforts to offer differentiated content to drive growth and loyalty in home and mobile services. Marketing and content partnerships were signed with video streaming providers like Netflix and Viu.

In Australia, Optus Consumer revenue grew 6% on continued growth in mobile and fixed as well as strong handset sales. EBITDA grew 5%. Data revenues grew 10% on increasing penetration of 4G services. Branded postpaid customers grew 89,000. Mobile handset customers grew 41,000.

Optus Consumer continued to offer customers exciting and differentiated content through partnerships with Netflix and Cricket Australia.

GROUP ENTERPRISE

Group Enterprise extended its capabilities to business and government customers in cyber security, cloud computing, big data and smart nation solutions.

Excluding fibre rollout, Group Enterprise revenues grew 8% and EBITDA rose 2%. In constant currency terms, revenues jumped 10% and EBITDA rose 4%. This after factoring in the first full-quarter revenue and EBITDA contributions of S$75 million and S$3 million from Trustwave.

Optus Business saw significant contract wins and re-signs from the Australian government.

GROUP DIGITAL LIFE

Group Digital Life recorded strong revenue growth driven mainly by Amobee's social, video and mobile advertising business which acquired marquee clients like Microsoft, Lexus and Fiat.

The Group's EBITDA improved 18% with Amobee's better performance and savings from discontinued businesses. In constant currency terms, revenues grew by 13% while losses before interest and tax reduced by 19%.

The Group continued to invest in innovation and initiated Innov8 Connect to crowdsource smart solutions from start-ups to address business challenges faced by the Singtel Group in areas such as enterprise, cloud and safe and smart cities.

Outlook for the current financial year ending 31 March 2016

The Group affirms the guidance previously issued in November 2015.

Please refer to Appendix 2 for further details on the outlook for the current financial year.

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[1] Source: IDA 4G Measurement Survey Results for Q3 2015.

SingTel - Singapore Telecommunications Limited issued this content on 12 February 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 11 February 2016 23:04:32 UTC

Original Document: http://www1.singtel.com/about-us/news-releases/strong-busines-performance-drives-results-for-q3-and-9-months-ended-dec-2015-.html