The Group’s share of the associates’ pre-tax and post-tax profits grew 5.0% and 5.5% respectively amid weaker regional currencies, as the Indian Rupee and Indonesian Rupiah declined sharply by 15% and 9% respectively from a year ago. If the regional currencies had remained stable from a year ago, the pre-tax and post-tax contributions of the associates would have increased by 12% each.

The regional mobile associates continued their strong customer growth momentum. Telkomsel registered 9.8% increase in its customer base to 121 million as at 31 March 2013. Airtel’s total mobile customer base covering India, Bangladesh, Sri Lanka and across Africa, reached 260 million as at 31 March 2013, up 7.8% from a year ago. Excluding Warid Pakistan which was divested in March 2013, the Group’s combined mobile customer base reached 468 million in 25 countries, a growth of 8.5% or 37 million from a year ago.

Telkomsel accounted for 51% of the Group’s share of associates’ post-tax profits, up from 47% last year. Operating revenue grew 13% and EBITDA increased 10% underpinned by growth across voice, SMS and data. With lower depreciation and higher interest income, the Group’s share of Telkomsel’s post-tax profit grew a strong 23% in Indonesian Rupiah terms. In Singapore Dollar terms, Telkomsel’s post-tax contribution increased 13% to S$754 million, reflecting the 9% decline in the Indonesian Rupiah against the Singapore Dollar. Telkomsel maintained its leading position in Indonesia with a market share of approximately 44% as at 31 March 2013.

AIS contributed 23% to the Group’s share of associates’ post-tax profits, 5 percentage points higher than last year. Post-tax contribution surged 36% to S$338 million, driven by robust growth in both voice and non-voice revenues, lower depreciation and amortisation charges as well as lower taxes from the reduction in Thai corporate tax rates. AIS maintained its lead in the Thailand mobile market with approximately 43.6% market share.

During the year, Airtel was impacted by adverse regulatory changes in India, as well as economic headwinds in Africa and increased market competition. Amid these challenges, Airtel’s revenue grew 12% while EBITDA increased 5% on higher network costs and selling and administrative expenses. Net profit, however, declined 47% due to higher depreciation and spectrum amortisation charges on network investments, increased financing costs and higher income taxes. With the steep 15% depreciation of the Indian Rupee against the Singapore Dollar, overall post-tax contribution from Airtel declined 53% to S$169 million. Airtel continued to lead the India mobile market with a market share of approximately 21.7%.

Globe, the second largest mobile phone operator in the Philippines, recorded service revenue growth of 6% on sustained growth across both mobile and broadband in a competitive market. EBITDA, however, was stable on higher subsidy and service costs. With lower net interest expense and a stronger Philippine Peso relative to the Singapore Dollar, Globe’s post-tax contribution grew 15% to S$150 million. This contribution excluded Globe’s accelerated depreciation charges related to its network modernisation and IT transformation programmes. The Group’s share of this exceptional charge has been classified as an exceptional item of the Group.

Singtel ceased to equity account for Warid Pakistan from 1 July 2012 upon its reclassification as an “Asset Held For Sale”. Warid Pakistan was disposed in March 2013.

Pacific Bangladesh Telecom’s carrying value was nil as at 31 March 2012 and Singtel ceased to equity account for its results from 1 April 2012.