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Singtel Expects to Post Losses in Fiscal Year Ended March

05/13/2021 | 05:46pm

By P.R. Venkat

Singapore Telecommunications Ltd. is expected to post losses for the fiscal year ended March as the group took non-cash impairment charges on some of its businesses.

The company expected that its net exceptional losses for the year ended March is likely to come in at 1.21 billion Singapore dollars (US$907.4 million), Singtel said Friday.

For the second half of the fiscal year, the company expects losses to come in at S$839 million.

Results are being affected by a total of US$688 million non-cash impairment charges against its investment in Amobee and Trustwave.

"Both businesses have come under increasing pressure in the last two years due to industry and operational challenges," Chief Executive Yuen Kuan Moon said.

The businesses have been hurt by Covid-19 as advertisers and enterprises have undertaken cost-cutting measures, Singtel said.

Singtel is undertaking a strategic review of these businesses that could involve full or partial divestment of the units.

"We are open to all types of strategic partnerships and deals including inviting investors who have complementary capabilities and can enhance the value of the businesses," Mr. Yuen said.

Separately, the company's Australia unit Optus will also make a non-cash impairments and write-owns of S$204 million in the second half of the year to account for legacy fixed access networks.

Singtel is due to announce its results on May 27.

In the last fiscal year, Singtel's underlying net profit came in at S$2.46 billion.

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

(END) Dow Jones Newswires

05-13-21 1946ET

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