SingTel

SingTel: 3QFYMar13 results below expectations. Revenue was down 4.8% to $4.6b, while net profit fell 8.3% to $827m, missing Bloomberg consensus of $907m. This was mainly due to exceptional charges of $67m, which include Optus restructuring costs, and accelerated depreciation charges related to Globe network modernization and IT. SingTel is revamping operations in Australia and accelerating the roll out of a faster mobile network as mounting competition crimps growth at Optus, its biggest unit by sales. Weakness in India, and the stronger SGD vs IDR and THB last yr also had negative impact on growth in associate contribution. For FYMar13, mgt maintains its expectations for group consolidated revenue to fall by low single-digit levels, hurt by exchange-rate fluctuations, while projecting EBITDA to remain stable. The stock trades at 16.3x annualized 9M13 P/E, 2.5x P/B. Post results, OCBC maintains its Buy rating, but places its TP $3.53 under review pending analyst briefing.