SingTel

SingTel: posted 1QFY14 results that came in broadly in line to above street expectations. Revenue of $4,293.3m, down 5.3% YoY and 4.2% QoQ, weighed by lower revenue in Australia and the weaker AUD. Core net profit (excluding exceptional items) rose 5.5% YoY (but fell 10.4%) to $897m. Reported net profit though climbed 7.0% YoY and 16.4% QoQ to $1,011.0m, boosted by stronger EBITDA margins and higher associate contributions. EBITDA grew 4.3% to $1,296m, as EBITDA margins expanded to 30.2% from 27.4% y/y. Meanwhile, share of associates’ pre-tax profits rose 14.1% to $578m, driven by Telkomsel in Indonesia and AIS in Thailand on stronger data growth, as well as lack of losses from Warid in Pakistan with the group having disposed its stakes in Mar ‘13. Free cashflow also climbed 23% YoY to $893m, mainly due to timing and higher dividend receipts from associates. Going forward, the group’s outlook remains somewhat muted, as SingTel expects lower overall revenue (mainly from Group Consumer), with likely EBITDA compression (by mid-single digits) as well. OCBC places its Hold rating and TP $3.83 under review.