Singtel Warns of Losses in Fiscal Second-Half; No Impact on Payouts

By P.R. Venkat

Singtel said it expected to post a loss for the second half of the fiscal year that ended March mainly due to impairment charges, including on its Australian business.

However, dividend payout to shareholders won't be impacted as the charges were non-cash in nature, the Singapore-headquartered telecom operator said Monday.

Singtel expects to recognize impairment provisions of 3.1 billion Singapore dollars (US$2.27 billion) in the second half, including a S$2.0 billion goodwill provision on its Australia business Optus.

Another S$340.0 million goodwill impairment provision will also be made for Singtel's Asia-Pacific cyber security business.

"Singtel's dividend policy is to pay ordinary dividends at between 70% and 90% of underlying net profit and the payment of dividends will not be impacted by the exceptional provisions," the telecom operator said.

The company said it remained on track to pay at the upper end of its dividend policy for the fiscal year ended March.

Write to P.R. Venkat at venkat.pr@wsj.com

(END) Dow Jones Newswires

April 28, 2024 20:23 ET (00:23 GMT)

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