Singtel disposes one of its money losing associate, its entire 30% stake in Warid. Warid is the most losing oversea associate so far, it is a good news to dispose it away IMO
Is the disposal with a fair price? Need to go into detail...
http://info.sgx.com/webcoranncatth.nsf/V...2003C18B3/$file/534-sgx.pdf?openelement
SingTel's Warid sale rationalises portfolio: Morgan Stanley
While SingTel's (Z74.SG) sale of its 30% stake in Pakistan's Warid Telecom for US$150 million ($185 million) will lead to a book loss, the transaction continues to rationalise the group's asset portfolio as it sells non-core assets and likely won't adversely affect dividends as the payout policy applies to recurring net income, Morgan Stanley says.
It keeps an Overweight call. "At 14x 2014e P/E and with a dividend yield of around 5%, we believe the stock is attractively valued, especially with its operational outlook in its four key markets improving."
http://www.theedgesingapore.com/the-dail...anley.html
SingTel flat despite Bharti 3Q13 net profit falling 72%
SingTel (Z74.SG) is flat at $3.50, barely budging despite its 32%-owned associate Bharti (532454.BY) reporting its fiscal-3Q13 net profit dropped 72% on-year to INR2.84 billion ($66 million), sharply below the INR7.96 billion average forecast from a Dow Jones poll.
"We have been paring down our expectations for Bharti," says Carey Wong, an analyst at OCBC. "The Singapore market is also still quite filled with liquidity and I think most people are of the view that with Chinese New Year coming, we could still have more upside. It's unlikely to fall drastically."
http://www.theedgesingapore.com/the-dail...ng-72.html
Singtel share price reaches 52 weeks high of 3.62 today
I am in for value higher than that. Let's see the 3Q announcement tomorrow...
Mr Market reacted by a drop of -2% this morning
SingTel profit drops 8.3% on Optus restructure, Globe
SINGAPORE — SingTel today said that third-quarter profit fell by 8.3 per cent on charges from its Australian and Philippine businesses.
Net income dropped to S$827 million in the three months ended December, missing the S$907 million average of analyst estimates compiled by Bloomberg. It follows charges at SingTel’s Globe business in the Philippines and costs associated with restructuring its Optus unit in Australia.
http://www.todayonline.com/business/sing...ture-globe
$180K fine is peanut for Mio TV's annual revenue of more than $100 mil
SingNet fined record S$180,000 for Mio TV service disruption
SINGAPORE – The Media Development Authority (MDA) has fined SingNet S$180,000 for a disruption to its Mio TV service on May 13 last year.
Investigations revealed the island-wide disruption affected some 115,000 Mio TV subscribers who were tuning-in to the concluding matches of the 2011/2012 Barclays Premier League (BPL) season on May 13 last year.
http://www.todayonline.com/singapore/sin...disruption
The main objective is to promote more data usage, rather than compete directly with WhatsApp-like applications IMO
But doesn't it work directly with existing apps more effective than create their own one?
SingTel and StarHub to launch messaging apps in coming months as use of SMS declines
SINGAPORE — The sharp drop in the number of text messages exchanged in the past two years has made telcos here sit up, with plans drawn up to regain lost ground by developing their own WhatsApp-like applications and partnering with app developers for another source of revenue.
Latest Infocomm Development Authority statistics showed the volume of SMSes sent fell to 1.78 billion in December from 2.3 billion a year ago — a 22-per-cent decrease. In December 2010, 2.4 billion SMSes were exchanged by mobile phone users.
http://www.todayonline.com/singapore/tel...e-whatsapp
Singtel prob has more to worry than SMS - I always felt jittery abt Singtel's Optus ventures.
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What you need to know about SingTel's completely disastrous quarter down under
It was a complete decimation of their Optus business.
SingTel subsidiary Optus is struggling for its proverbial 4G life in Australia and new figures show the carrier is at risk of losing the fight for its future. This is very serious news for Singtel and has already been highlighted in their results.
But the results, whilst flat, don't tell the true story of a strategy that is leading to fundamental failure in the Australian market. As Australia, like Singapore, moves to 4G, Optus is getting crushed by Telstra, the number one telco. How crushed?
Let's look at the facts. In the last six months Telstra added about 600,000 new customers - half of them for the 4G service. Optus managed not even one tenth of that number - 53,000 new customers in all. This is not just a loss, its not a blip, its a complete rout and a disaster for Optus as it loses the race to 4G.
And it gets even worse. If you don't get new customers its pretty hard to grow profits. Telco's should be profit machines, yet Optus managed to see its profit decline 9% over the fourth quarter. This was a prime reason for SingTel seeing its own profits fall 8.3 % in the fourth quarter.
If SingTel can fix Optus, it can fix its own profitability woes. But the numbers suggest that its not just losing, it has been completely routed. It's only proposed solution is to invest some more money in more retail outlets and cut some ties with existing resellers.
But the number of shops selling Optus may not be the reason it is not picking up all those new 4G subscribers. Network speed are key for 4G customers and Telstra has the perceived advantage.
Optus increased its spending on its core infrastructure by 41 % to $176 million, but the customer decisions to choose Telstra over Optus by a 10 to 1 advantage would suggest this may not be enough. Shifting shops and distributors may not be enough to turn this ship around.
Singtel's Optus business is a concern, but not yet a disaster as stated in the article. The article is over-pessimistic IMO
(vested)
(18-02-2013, 09:58 AM)AlphaQuant Wrote: [ -> ]Singtel prob has more to worry than SMS - I always felt jittery abt Singtel's Optus ventures.
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What you need to know about SingTel's completely disastrous quarter down under
It was a complete decimation of their Optus business.
SingTel subsidiary Optus is struggling for its proverbial 4G life in Australia and new figures show the carrier is at risk of losing the fight for its future. This is very serious news for Singtel and has already been highlighted in their results.
But the results, whilst flat, don't tell the true story of a strategy that is leading to fundamental failure in the Australian market. As Australia, like Singapore, moves to 4G, Optus is getting crushed by Telstra, the number one telco. How crushed?
Let's look at the facts. In the last six months Telstra added about 600,000 new customers - half of them for the 4G service. Optus managed not even one tenth of that number - 53,000 new customers in all. This is not just a loss, its not a blip, its a complete rout and a disaster for Optus as it loses the race to 4G.
And it gets even worse. If you don't get new customers its pretty hard to grow profits. Telco's should be profit machines, yet Optus managed to see its profit decline 9% over the fourth quarter. This was a prime reason for SingTel seeing its own profits fall 8.3 % in the fourth quarter.
If SingTel can fix Optus, it can fix its own profitability woes. But the numbers suggest that its not just losing, it has been completely routed. It's only proposed solution is to invest some more money in more retail outlets and cut some ties with existing resellers.
But the number of shops selling Optus may not be the reason it is not picking up all those new 4G subscribers. Network speed are key for 4G customers and Telstra has the perceived advantage.
Optus increased its spending on its core infrastructure by 41 % to $176 million, but the customer decisions to choose Telstra over Optus by a 10 to 1 advantage would suggest this may not be enough. Shifting shops and distributors may not be enough to turn this ship around.
If you had to guess which business the company was spending 65% of its capex on - SingTel or Optus - which would it be?
If you also had to guess which business earned a ROA of 6% compared to 25% for the other one, which would it be?
The answer to both is Optus. That is the definition of poor capital allocation.