Shares of Singapore Telecommunications (Singtel) are soaring 3.06% in intraday trading on Wednesday, following the company's announcement of strong first-quarter results for fiscal year 2026. The telecom giant reported a 14% increase in underlying net profit, driven by robust performances from its Australian unit Optus and significant contributions from regional associates.
Singtel's underlying net profit for the quarter ended June 30, 2025, rose to S$686 million ($534.77 million) from S$603 million a year earlier. This result was largely in line with analyst expectations. The company's statutory net profit surged to S$2.88 billion, a sharp increase from S$690 million last year, bolstered by one-off gains from the sale of a partial stake in Airtel and the Intouch-Gulf Energy merger.
The strong performance was underpinned by several factors. Optus, Singtel's Australian unit, reported a 4% increase in mobile service revenue due to higher Average Revenue Per User (ARPU) and an expanded mobile customer base. Additionally, post-tax contributions from regional associates, including India's Bharti Airtel, Indonesia's Telkomsel, and Thailand's AIS, grew by 24.5% to S$468 million. Singtel CEO Yuen Kuan Moon expressed confidence in the company's trajectory, highlighting the telecom operator's data centre business as a "bright spot" for the ongoing financial year. The positive results and optimistic outlook have clearly resonated with investors, driving the stock's significant rise in today's trading session.