Singtel Q1 Profit Drops 71% on Weaker Singapore Business

Singtel reported a 71.6 per cent drop in first-quarter net profit to $818 million, down from $2.88 billion the previous year, according to financial results released on Aug 13. The telecommunications group stated that the sharp decline stemmed from exceptional gains recorded during the same period in 2025, which included proceeds from selling a partial stake in Airtel and the Intouch-Gulf Energy merger, according to The Business Times.

Underlying Profit Growth and Divisional Performance

Despite the lower net profit, Singtel’s underlying net profit rose 21 per cent to $831 million, compared to $686 million the prior year. According to the group, this core growth was powered by contributions from regional associates and core units including Airtel, AIS, NCS, Optus, and its Digital InfraCo arm. Group operating revenue increased 4.9 per cent, while earnings before interest, taxes, depreciation, and amortisation (Ebitda) grew 8.7 per cent. These gains were supported by a stronger Australian dollar and improved execution across NCS, Optus, and Digital InfraCo, which helped offset softer results from the domestic market.

Intense Price Competition Weighs on Singtel Singapore

Singtel Singapore faced mounting headwinds domestically, with operating revenue falling 3.1 per cent to $901 million from $929 million. The company attributed the dip to continued intense price competition in the local market. While data and internet revenues ticked upward, these gains were wiped out by declines in mobile, information and communication technology, and legacy services, according to the group. Mobile service revenue dropped 4 per cent due to lower average revenue per user, pulling local Ebitda down 4.6 per cent to $363 million.

To defend its domestic market share, group chief executive officer Yuen Kuan Moon stated that the company remains focused on executing its tri-brand strategy using Singtel, Gomo, and Hi! to target different customer segments.

Regional Associates and Digital InfraCo Drive Expansion

Outside of Singapore, regional associates delivered double-digit growth. Post-tax contributions from regional associates climbed 16.1 per cent to $543 million, up from $468 million previously. Airtel posted a 15.9 per cent increase in post-tax contribution, while AIS surged 32.7 per cent, bolstered by higher mobile and broadband services, strict cost discipline, and lower depreciation charges.

Meanwhile, the Digital InfraCo arm expanded its operating revenue by 18.9 per cent. This growth was fueled by data centre unit Nxera following the operational start of DC Tuas in Singapore earlier in 2026, alongside broader cloud services expansion. Digital InfraCo Ebitda climbed 20.8 per cent to $70 million. Management previously noted in July that it is considering a dual-listing of Nxera on the Singapore Exchange and Nasdaq.

“We are beginning to reap contributions from our new growth investments in Digital InfraCo, with our data centre arm Nxera seeing good growth in contracted capacity in Singapore and the region from strong customer demand for artificial intelligence and cloud,” Yuen said.

Frequently Asked Questions

What caused Singtel’s net profit to drop by 71.6 per cent?

The drop was driven by the absence of exceptional gains from the previous year, which included the sale of a partial stake in Airtel and the Intouch-Gulf Energy merger, according to company reports.

How did Singtel’s underlying net profit perform?

Underlying net profit increased by 21 per cent to $831 million, up from $686 million the previous year, driven by strong performances from Airtel, AIS, NCS, Optus, and Digital InfraCo.

Why did Singtel Singapore’s revenue decline?

Singtel pointed to intense price competition in the domestic market, which led to lower average revenue per user and drops in mobile, ICT, and legacy services.

What is the status of Singtel’s Nxera data centre unit?

Nxera is expanding rapidly on strong demand for artificial intelligence and cloud services, supported by the launch of DC Tuas. Management is evaluating a potential dual-listing on the Singapore Exchange and Nasdaq.