Singtel digital business doubles revenue

Singtel has reported what it deemed “resilient” financial results for the quarter ended June 30, and while cybersecurity, mobile, internet, ICT, and managed services all rose slightly, it was the company’s digital business segment that made the most gains.

Singtel’s “Digital Life” business segment includes digital marketing company Amobee, over-the-top video provider HOOQ, analytics provider DataSpark, music-streaming service AMPed, mobile wallet Dash, Singapore entertainment guide, and food service HungryGoWhere.

Digital Life’s quarterly operating revenue increased by 108.8 percent to SG$273 million, or by 91 percent to SG$293 million when taking intercompany eliminations into consideration.

“Group Digital Life’s revenue jumped 91 percent, driven by Amobee’s strong performance in social and media advertising, and first-time revenue contribution from Turn, a global technology platform for marketers and agencies, which was acquired by Amobee in April 2017,” Singtel said.

“With the integration of Turn, Amobee is realising synergies and winning new companies such as KIA, Spotify, and Constellation Brands as clients.

“Mobile video streaming service HOOQ announced a line-up of original local productions for audiences in the Philippines and Indonesia.”

For the quarter ending June 30, Singtel reported total net profit of SG$892 million, down 5.6 percent year on year from SG$944 million, on earnings before interest, tax, depreciation, and amortisation (EBITDA) of SG$1.27 billion, up 2.7 percent from SG$1.24 billion.

Singtel recorded operating revenue of SG$4.2 billion, up 8.3 percent, with the telco also attributing its increase in revenue to cybersecurity — despite its Trustwave business recording SG$13 million in negative EBITDA — after launching the Cyber Security Experience during the quarter.

Cybersecurity brought in SG$110 million in operating revenue, up 0.6 percent.

Singtel CEO Chua Sock Koong pointed towards a “more challenging business environment”.

“This speaks to the resilience of our core consumer business and the investments we’ve made in the digital space in our efforts to grow new businesses,” she said.

“Strategic investments in networks and customer experience will lay the foundation for future growth. The group’s customer base grew another 3 percent in the quarter to 655 million customers across the region.”

According to Singtel, its net profit would have been up by 3.4…

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