Annual Report 2016
Annual Report 2016
| Financial Year ended 31 March | |||||||||
| 2016 | 2015 | 2014 | 2013 | 2012 | |||||
| Income Statement (S$ million) | |||||||||
| Group operating revenue | 16,961 | 17,223 | 16,848 | 18,183 | 18,825 | ||||
| Singtel | 7,663 | 7,348 | 6,912 | 6,732 | 6,551 | ||||
| Optus | 9,298 | 9,875 | 9,936 | 11,451 | 12,275 | ||||
| Optus (A$ million) | 9,115 | 8,790 | 8,466 | 8,934 | 9,368 | ||||
| Group EBITDA | 5,013 | 5,091 | 5,155 | 5,200 | 5,219 | ||||
| Singtel | 2,187 | 2,146 | 2,223 | 2,147 | 2,128 | ||||
| Optus | 2,825 | 2,945 | 2,932 | 3,053 | 3,091 | ||||
| Optus (A$ million) | 2,771 | 2,624 | 2,502 | 2,381 | 2,357 | ||||
| Share of associates’ pre-tax profits | 2,791 | 2,579 | 2,201 | 2,106 | 2,005 | ||||
| Group EBITDA and share of associates’ pre-tax profits | 7,804 | 7,670 | 7,357 | 7,306 | 7,223 | ||||
| Group EBIT | 5,655 | 5,508 | 5,224 | 5,178 | 5,222 | ||||
| Net profit after tax | 3,871 | 3,782 | 3,652 | 3,508 | 3,989 | ||||
| Underlying net profit (1) | 3,805 | 3,779 | 3,610 | 3,611 | 3,676 | ||||
| Exchange rate (A$ against S$) (2) | 1.020 | 1.123 | 1.174 | 1.282 | 1.310 | ||||
| Cash Flow (S$ million) | |||||||||
| Group free cash flow (3) | 2,718 | 3,549 | 3,249 | 3,759 | 3,462 | ||||
| Singtel | 869 | 1,379 | 1,181 | 1,491 | 1,170 | ||||
| Optus | 631 | 1,070 | 1,020 | 1,367 | 1,451 | ||||
| Optus (A$ million) | 617 | 976 | 903 | 1,068 | 1,111 | ||||
| Associates’ dividends (net of withholding tax) | 1,218 | 1,100 | 1,048 | 900 | 841 | ||||
| Cash capital expenditure | 1,930 | 2,238 | 2,102 | 2,059 | 2,249 | ||||
| Balance Sheet (S$ million) | |||||||||
| Total assets | 43,566 | 42,067 | 39,320 | 39,984 | 40,418 | ||||
| Shareholders’ funds | 24,989 | 24,733 | 23,868 | 23,965 | 23,428 | ||||
| Net debt | 9,142 | 7,963 | 7,534 | 7,477 | 7,860 | ||||
| Key Ratios | |||||||||
| Proportionate EBITDA from outside Singapore (%) | 74 | 74 | 73 | 75 | 76 | ||||
| Return on invested capital (%) (4) | 11.7 | 12.1 | 11.6 | 11.8 | 12.0 | ||||
| Return on equity (%) | 15.6 | 15.6 | 15.3 | 14.8 | 16.7 | ||||
| Return on total assets (%) | 9.0 | 9.3 | 9.2 | 8.7 | 10.0 | ||||
| Net debt to EBITDA and share of associates’ pre-tax profits (number of times) | 1.2 | 1.0 | 1.0 | 1.0 | 1.1 | ||||
| EBITDA and share of associates’ pre-tax profits to net interest expense (number of times) | 25.3 | 29.2 | 28.7 | 24.5 | 20.7 | ||||
| Per Share Information (S cents) | |||||||||
| Earnings per share - basic | 24.29 | 23.73 | 22.92 | 22.02 | 25.04 | ||||
| Earnings per share - underlying net profit (1) | 23.88 | 23.71 | 22.65 | 22.66 | 23.07 | ||||
| Net assets per share | 156.8 | 155.2 | 149.8 | 150.4 | 147.1 | ||||
| Dividend per share - ordinary | 17.5 | 17.5 | 16.8 | 16.8 | 15.8 | ||||
“Singtel” refers to the Singtel Group excluding Optus.
The Group delivered a strong performance with resilient core business and robust contributions from associates. Operating revenue was S$16.96 billion, 1.5% lower than FY 2015 with the Australian Dollar declining a steep 9% against the Singapore Dollar and the impact of lower mobile termination rates in Australia from 1 January 2016. In constant currency terms, operating revenue would have grown 4.1% across all business units with
first time contribution from Trustwave, Inc. (a newly acquired cyber security business). EBITDA was S$5.01 billion, 1.5% lower than FY 2015 and in constant currency terms, would have increased 4.1% with strong cost management.
The associates’ pre-tax contributions rose 8.2% to S$2.79 billion and would have increased 9.7% excluding the currency translation impact. The regional mobile associates recorded
strong customer growth and robust mobile data growth, with higher earnings from Telkomsel and Globe offsetting the decline in Airtel.
Underlying net profit was stable and net profit including exceptional items increased 2.4% to S$3.87 billion. In constant currency terms, underlying net profit and net profit would have increased 4.0% and 5.5% respectively from FY 2015.
The Group delivered a strong set of results. Operating revenue was S$17.22 billion, 2.2% higher than FY 2014 with growth across all the business units. EBITDA was S$5.09 billion, 1.3% lower than FY 2014 with the Australian Dollar weakening 4% against the Singapore Dollar. In constant currency terms, revenue grew 4.8% and EBITDA rose 1.3% despite operating losses from the digital businesses.
The associates’ pre-tax contributions rose strongly by 17% to S$2.58 billion and would have increased 21% excluding the currency translation impact. The regional mobile associates registered strong customer growth and increased demand for mobile data services, with earnings growth led by Airtel India, Telkomsel and Globe.
Underlying net profit grew 4.7% and net profit including exceptional items increased 3.5% to S$3.78 billion. In constant currency terms, underlying net profit and net profit would have increased 7.5% and 6.2% respectively from FY 2014.
The Group delivered a resilient performance against industry challenges and currency headwinds. Operating revenue was S$16.85 billion, 7.3% lower than FY 2013 with the Australian Dollar weakening 8% against the Singapore Dollar. In constant currency terms, revenue would have declined 2.3% with lower mobile revenue in Australia and a cautious business climate. EBITDA was relatively stable at S$5.16 billion but in constant currency terms increased 4.5% on an improved cost structure.
The associates’ pre-tax contributions rose 4.5% to S$2.20 billion and would have increased strongly by 13% excluding the currency translation impact. The regional mobile associates registered robust demand for mobile data services, with earnings growth led by Airtel India.
Underlying net profit was stable at S$3.61 billion and net profit including exceptional items grew 4.1% to S$3.65 billion. In constant currency terms, underlying net profit and net profit would have increased 5.9% and 10% respectively from FY 2013.
The Group delivered resilient earnings amid significant industry changes while it continued to invest in transformational initiatives to drive long-term growth. Operating revenue was S$18.18 billion, 3.4% lower than FY 2012 due to lower mobile revenue in Australia. EBITDA was stable at S$5.20 billion. In constant currency terms, revenue declined 2.1% but EBITDA grew 1.0% on strong cost management.
The associates’ pre-tax contributions grew 5.0% to S$2.11 billion. Excluding the currency translation impact, the associates’ pre-tax contributions would have increased strongly by 12%, underpinned by double-digit earnings growth from Telkomsel and AIS.
Underlying net profit was S$3.61 billion, a decrease of 1.8% from FY 2012. Excluding currency translation impact, underlying net profit rose 1.4%. Including net exceptional losses mainly from disposal of Warid Pakistan in FY 2013, net profit declined 12% to S$3.51 billion in FY 2013.
The Group’s operating revenue grew 4.2% to S$18.83 billion, underpinned by robust mobile growth in Singapore and 4% appreciation of the Australian Dollar. EBITDA rose 1.9% to S$5.22 billion with lower customer acquisition costs in Australia partly offset by investments in TV content and higher mobile customer acquisition and retention costs in Singapore.
The associates’ pre-tax contributions declined 6.4% to S$2.01 billion. Excluding currency translation impact, the associates’ pre-tax contributions would have been stable, driven by strong profit growth from Telkomsel and AIS partially offset by Airtel’s lower earnings.
Underlying net profit was S$3.68 billion, 3.3% lower than FY 2011. Including net exceptional gains and an exceptional net tax credit of S$270 million on the increase in value of assets transferred to an associate, net profit grew 4.3% to S$3.99 billion.