Singapore Telecommunications Limited (Singtel) reported a better-than-expected underlying net profit for the first quarter of fiscal year 2027, supported by strong contributions from its Australian subsidiary Optus, regional associates including Bharti Airtel and AIS, and continued growth in its digital and data centre businesses.

According to Reuters, Singtel posted a 21% rise in first-quarter profit, with Optus, Airtel, and digital businesses serving as the primary growth drivers.

Singtel is Southeast Asia's largest telecommunications company, headquartered in Singapore. The group operates across multiple markets through a combination of direct operations and strategic stakeholdings. Optus, its wholly owned Australian unit, is the second-largest telecommunications provider in Australia. Singtel also holds a substantial minority stake in Bharti Airtel, India's largest mobile operator, as well as a significant interest in Advanced Info Service (AIS), Thailand's leading mobile network operator. Airtel has benefited from India's telecom market consolidation, which has left fewer competitors and supported average revenue per user growth across the industry.

However, the group's Singapore telecom operations remained under pressure amid intense competition in the domestic market. The Singapore mobile market has long been characterized by price competition among multiple operators, limiting revenue growth in Singtel's home base.

The group has been expanding its digital infrastructure footprint, including data centre and digital infrastructure businesses, as part of its broader strategy to diversify revenue beyond traditional telecommunications services. This push aligns with rising demand for cloud computing and AI-driven infrastructure across the Asia-Pacific region, where data centre capacity is becoming a competitive differentiator for telecom operators seeking new revenue streams.

Source: Economic Times Markets