By P.R. Venkat
Singapore Telecommunications Ltd.'s net profit in the second half plunged as the company took a massive non-cash impairment charges on its investments in two of its units.
Net profit for the second half ended March came in at 87.6 million Singapore dollars (US$66.1 million) compared with S$1.20 billion same period last year, Singtel said Thursday.
Revenue was mostly flat at S$8.22 billion. The company took a S$1.18 billion impairment charge for its investments in Amobee and Trustwave that also saw their full-year net profit fall nearly 50% to S$554 million.
"This year's results are disappointing given unprecedented headwinds from Covid-19 and ongoing structural challenges," said the company's chief executive, Yuen Kuan Moon.
Separately, the company said that it was undertaking a strategic review of its business that could include unlocking the value of its infrastructure assets.
Singtel currently holds infrastructure assets including towers, satellites, subsea cables and data centers across the region. It has already started a partial sale via auction of Optus towers in Australia as part of its strategy to recycle its assets.
"Given the importance of the digital economy to Singapore and its economic recovery, it is also important that we unlock the value of these assets so that we can continue to reinvest in world-class infrastructure that will sustain an environment for investment and innovation, and support our businesses," Mr. Yuen said.
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(END) Dow Jones Newswires
May 26, 2021 19:59 ET (23:59 GMT)Copyright (c) 2021 Dow Jones & Company, Inc.