The Group delivered resilient earnings amid significant industry changes while it continued to invest in transformational initiatives to drive long-term growth. Overall EBITDA was stable at S$5.20 billion. Operating revenue was S$18.18 billion, down 3.4% due to lower revenue in Australia. In constant currency terms, operating revenue declined 2.1% but EBITDA grew 1.0% on strong cost management.

In Singapore, excluding fibre rollout revenue where mass rollout was completed in June 2012, operating revenue rose 3.8%. The increase was contributed by growth in mobile and infocomm technology (ICT) operations as well as digital services. Mobile Communications grew 2.9% on strong customer gains which offset the lower roaming and SMS interconnect revenues. Data and Internet revenue increased 2.5% underpinned by robust growth in Managed Services and fibre broadband. EBITDA was stable but would have increased 3.6% excluding the startup losses from digital businesses.

In Australia, Optus continued to restructure its business to drive profitable growth as well as capitalise on mobile data opportunities. Though operating revenue declined 4.6%, EBITDA grew 1.0% reflecting Optus’ yield focus. Mobile revenue declined 5.9% due to lower equipment sales, service credits associated with the device repayment plans introduced last year and further mandated reduction in mobile termination rates from 1 January 2013. Revenue from Business and Wholesale Fixed was stable as higher satellite and ICT and managed services revenues offset the lower voice and Data and IP revenues. In Consumer Fixed, lower on-net broadband average revenue per user (ARPU) has resulted in the on-net revenue declining by 4.8%. With the weaker Australian Dollar, Optus’ translated revenue in Singapore Dollars decreased 6.7% from last year.

The associates’ pre-tax contributions grew 5.0% to S$2.11 billion. Excluding the currency translation impact, the associates’ pre-tax contributions increased strongly by 12% from last year.

Telkomsel and AIS delivered increases in revenue and EBITDA underpinned by strong data growth. Globe’s service revenue grew on sustained growth in mobile and broadband while EBITDA was stable on higher subsidy and service costs. Despite the highly competitive market in India and the economic headwinds in Africa, Airtel’s operating revenue grew 12% and EBITDA increased 5%. Overall earnings, however, declined due to higher depreciation and spectrum amortisation charges on mobile network expansion, and increased financing costs.

With higher depreciation and amortisation charges from continued mobile network investments and higher intangibles from recent acquisitions, the Group’s EBIT was stable at S$5.18 billion.

The Group’s exceptional items for the year included the divestment loss of Warid Pakistan of S$225 million, Optus’ ex-gratia costs on its workforce restructuring of S$101 million, and the Group’s share of Globe’s accelerated depreciation of S$114 million from its network and IT transformation. Together with the net dividend income from Southern Cross of S$149 million and the divestment gain in Far EasTone Telecommunications Co., Ltd (FET) of S$119 million, the net exceptional losses for the year amounted to S$154 million. An exceptional tax credit of S$270 million was recognised last year on the value of assets transferred to an associate.

Net profit after exceptional items declined 12% to S$3.51 billion. Excluding exceptional items, underlying net profit decreased 1.8% to S$3.61 billion. Excluding startup losses from the digital businesses and currency translation impact, underlying net profit would have increased 2.6%.

The Group has successfully diversified its earnings base through its expansion and investments in overseas markets. On a proportionate basis if the associates are consolidated line-by-line, operations outside Singapore accounted for 76% and 77% of the Group’s proportionate revenue and proportionate EBITDA respectively.