SingTel

SingTel: 2QFYJun11 results below expectations. Revenue +8% to $4.4b, but net profit to sh/h -6% yoy at $892m, largely due to i) significantly weaker margins in Spore due to mioTV content costs and higher smartphone-related customer acquisition costs, ii) Bharti contribution down 12% due to consolidation of African losses and acquisition-related costs…

KE sees limited growth catalysts. Mgt stays with previous guidance of mid single digit revenue growth for Spore and Australia, lower EBITDA margin for Spore and mid single digit EBITDA growth for Australia.
Div payout policy raised from 45-60% to 55-70%; declared interim div of $0.068/sh, +10% yoy, final div forecast at $0.10/sh ($0.08/sh prev) translates to 5-5.5% yield.
For growth potential, KE prefers M1. For yield, prefer StarHub.