Singapore Telecommunications Ltd Z74

Singtel Provides Diversified Southeast Asian Telecom Exposure

Singtel is the incumbent telecommunications company in Singapore and has expanded into emerging markets in the Asia-Pacific region and India. Singtel’s solid free cash flow is supported by its market-leading position in Singapore and as the second-largest service provider in Australia. Emerging-markets investments hold significant presence in their respective markets and deliver cash flow through dividends to the group. Along with consistent dividend streams from its investments, we expect Singtel to deliver moderate growth in profits and free cash flow despite strong competition in its core Australian and Singapore markets. Most excess cash generated from its core telecom businesses and investments will likely be paid back to shareholders through dividends with the company committing to a 70%-90% dividend payout ratio.