Singtel reported a net profit of S$3.40 billion for the first half of its 2026 financial year, with underlying net profit rising 14% to S$1.35 billion. The increase was mainly attributed to contributions from regional associates Airtel and AIS, as well as operating companies NCS and Optus. Excluding foreign currency impacts and Intouch, whose contributions ended after its merger with Gulf, underlying net profit would have increased by 22%. The company’s net exceptional gain of S$2.05 billion was largely due to the sale of a partial stake in Airtel and the Intouch-Gulf merger.
Operating revenue fell by 1.2% to S$6.91 billion, primarily because of a stronger Singapore dollar. In constant currency terms, Singtel’s operating revenue would have grown by 1.9%, EBITDA by 4.9%, and operating company EBIT by 14%.
Yuen Kuan Moon, Singtel Group CEO, stated: “The Group’s first half results reflect the positive momentum across our diversified portfolio of businesses across the region. We continued to drive growth in connectivity, digital services and digital infrastructure and also unlocked more value from our asset recycling efforts as we executed to our Singtel28 plan. While the macroeconomic outlook remains challenging, and the Optus business faces uncertainty, our business and geographical diversity is lending stability to the Group’s performance.”
He added: “We expect our growth engines to change the complexion of the business in the mid term as they continue to scale. Nxera’s EBITDA should achieve a more than 20% compound annual growth rate over the next four years as it progressively adds new operational data centre capacity. We also see NCS keeping up its business momentum on robust bookings.”
Since implementing its Singtel28 plan, Singtel has generated S$5.6 billion through active capital management, including S$1.5 billion from selling a 0.8% stake in Airtel last week. This accounts for more than half of its new S$9 billion mid-term asset recycling target aimed at funding future growth opportunities and shareholder returns.
As of September 2025, Singtel had a cash balance of S$3.4 billion, which contributed to reducing net debt to S$8.7 billion and improving gearing ratios; nearly 90% of group debt is hedged at fixed rates.
Regional associates’ post-tax profit contributions increased by 12% to S$0.92 billion; excluding Intouch and on a constant currency basis, this would have been a 25% rise.
Optus saw operating revenue grow by 2%, supported by mobile postpaid gains and higher revenues from network sharing agreements that began in January 2025; EBIT rose by 27%. In September, Optus experienced an outage affecting emergency services; investigations are ongoing.
Yuen commented: “Since the recent Triple Zero outage, we have been working with the Optus board and management to step up efforts to improve Optus’ operational capabilities as a critical services provider that will do right by its customers and all Australians. Prior to that, we had been reinforcing Optus’ financial standing and investing to improve its network resilience through support for Optus’ sizeable investments in capex and spectrum to improve customer experience. Improving resilience on these two fronts will enhance Optus’ business sustainability in the longer term.”
Singtel Singapore maintained stable operating revenue despite competitive pressures; strong SME and enterprise connectivity offset weaker consumer performance.
NCS recorded a 6% increase in operating revenue with all strategic business groups growing; EBIT rose by 41%, aided by margin expansion across segments.
Digital InfraCo’s revenue declined slightly due mainly to non-recurring customer reservation fees from last year but saw EBIT rise thanks in part to demand for data centre space via Nxera.
The Board approved an interim dividend per share of 8.2 cents—up 17% compared with last year—comprising both core (6.4 cents) and value realisation (1.8 cents) dividends totaling S$1.35 billion distributed for this period.
Looking ahead for FY2026 ending March 31st, Singtel revised its outlook for operating company EBIT growth from high single digits previously forecasted now expected between high single digits and low double digits due partly to uncertainties following the Australian outage incident at Optus.
Dividends from regional associates are projected at S$1.1 billion—an increase over last year—with other guidance affirmed including approximately S$200 million cost savings targeted at Singtel Singapore/Optus before inflation impact; total capital expenditure is expected around S$2.5 billion with significant investments earmarked for data centres, AI initiatives, digitalisation projects, satellites—including one replacing ST-2 satellite scheduled before 2028—and about S$0.6 billion funded externally or via advance receipts.
