SingTel group is planning Capex (capital expenditure) of nearly S$2.3 billion, comprising S$900 million for Singapore and the balance for Australia, during the current fiscal.
The telecom operator will be making strategic investments in mobile network, particularly in Australia, and there will be increased spend in customer care and management systems.
SingTel said spectrum payments would be approximately S$900 million, mainly for Optus’ 4G spectrum in the 700 MHz range.
In the first quarter of fiscal 2015, capital expenditure was S$546 million, comprising S$175 million for Singapore and S$371 million (A$317 million) for Australia.
In Singapore, major capital investments in the quarter included S$52 million for mobile networks, and S$70 million for fixed and data infrastructure.
In Australia, capital investments in mobile networks and other core infrastructure were A$208 million and A$109 million respectively. Other investing cash flows included spectrum payments of S$80 million (A$68 million) for Optus’ renewal of certain spectrum and GSM 900 licenses.
The telecom operator’s Q1 revenue decreased 3.4 percent to S$4,148 million.
SingTel said its net profit dipped 17.4 percent to S$835 million.
Singapore consumer business and regional mobile associates – Bharti Airtel and Globe — contributed strong growth.
As at 30 June 2014, the combined mobile customer base grew 10 percent to 525 million from a year ago.
“Our regional mobile associates delivered a solid performance. Their markets are experiencing strong growth, spurred by improvements in 3G networks, handsets and content. We are collaborating with our associates to accelerate investments in networks, and launch new data and digital services,” said Chua Sock Koong, SingTel Group CEO.
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