SINGAPORE, Aug 14 (Reuters) - Singapore Telecommunications , Southeast Asia's largest phone firm, on Tuesday beat market expectations with a 10.4 percent rise in first-quarter net profit reflecting good business at home and abroad.
Singapore Telecommunications Ltd. said that it would stick to previously issued guidance for single-digit revenue growth in 2008 aided by improved mobile communications, data and information technology revenues.
Adding to the previous guidance the company said that to support increased business activities, additional capital expenditure would be required and the capital expenditure to revenue ratio is expected to be in low double-digits.
"We have made an excellent start to the new financial year with all our key businesses delivering strong earnings growth," SingTel's new Chief Executive Chua Sock Koong said in a statement.
"Our Singapore business delivered double-digit increase in revenue, which is unprecedented in recent years," said Chua who had replaced Lee Hsien Yang, the younger brother of Prime Minister Lee Hsien Loong, as CEO on April 1.
Chua said its Australian mobile phone business Optus also performed well by maintaining growth and profitability in a highly competitive environment while emerging market associates sustained their stellar growth.
SingTel said on Monday that it had 136.35 million mobile phone subscribers at the end of June, an increase of 12.6 million from the previous quarter.
SingTel is forecast to earn $3.56 billion in the full year from April-March, down about 6 percent from last year's $3.78 billion, according to the mean average of a Reuters Estimates poll of 15 analysts.
The April-June attributable net profit was at S$927 million ($611 million) versus S$839.5 million last year and above an average net profit forecast of S$894 million by four analysts polled by Reuters.
State-controlled SingTel, which owns Australia's No. 2 phone operator Optus and stakes in several Asian mobile firms, made underlying net profit, before goodwill and exceptionals, of S$868 million in the quarter, versus S$837 million a year ago.
Quarterly operating revenue grew 10.5 percent to S$3.6 billion.
Facing a home market of just 4.5 million people, where mobile penetration has reached 100 percent, SingTel, has spent S$18 billion in recent years buying operators in high-growth Asian nations, and in the bigger Australian market.
It now derives about 75 percent of revenues and two-thirds of pre-tax earnings from operations outside Singapore.
The company owns major stakes in five operators: 21.5 percent of Thailand's Advanced Info Service Plc. , 30.8 percent of India's Bharti Group, 44.6 percent of Globe Telecom Inc. in the Philippines, 35 percent of Indonesia's PT Telkomsel and 45 percent of Pacific Bangladesh Telecom Ltd.
Optus has also been grappling with ebbing subscriber growth and regulatory changes in a saturated domestic market. It achieved a 12 percent rise in underlying net profit to A$122 million ($103 million).
Optus, which holds a third of the Australian market, is SingTel's single-biggest revenue and profit generator. It competes with Telstra Corp , Vodafone Group Plc and Hutchison Telecommunications (Australia) Ltd. .
SingTel shares rose 3.7 percent in April-June, and have gained 6.7 percent so far this year, underperforming a 13.2 percent rise in the benchmark Straits Times Index.
