Home Capital Investing ideas

Singtel posts record lowest earnings in FY2020; cuts dividend payout due to Covid-19 worries

Samantha Chiew
Samantha Chiew6/5/2020 06:30 AM GMT+08  • 8 min read
Singtel posts record lowest earnings in FY2020; cuts dividend payout due to Covid-19 worries
What's the call on Singtel?
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

SINGAPORE (June 5): Singtel’s shareholders, having gotten used to the telco’s relatively generous dividends over the years, received an unexpected piece of news when its latest results were announced. For the FY2020 ended March, the company plans to pay a final dividend of just 5.45 cents per share, down from 10.7 cents in the previous few fiscal years. This will bring the total FY2020 dividend to 12.25 cents per share, versus 17.5 cents per share that was distributed in FY2019. Still, the dividend payout of 12.5 cents per share represents a payout ratio of 81% of Singtel’s FY2020 underlying net profit, or about $2 billion.

“This reduction in dividend payout is prudent to conserve financial headroom to cope with uncertainties in the current Covid-19 operating environment and the capacity to invest in 5G,” explained Singtel Group CEO Chua Sock Koong at the company’s results briefing on May 28.

There is no doubt that the Covid-19 pandemic has hit Singtel hard, given travel and movement restrictions in its markets have caused a “significant reduction in roaming and prepaid revenues”.

Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.