(Reuters) – Singapore Telecommunications said on Monday it expects to report a net loss for the second half of fiscal 2024 as it noted exceptional provisions for non-cash impairments of S$3.1 billion ($2.28 billion) for the period .
The company also warned it would report lower net income for the full year ended March 31, 2024.
About S$2 billion of the total impairment provision comes from mobile network operations unit Optus’ goodwill, Singtel, Southeast Asia’s largest telecom operator, said in a statement.
A “pending deal” for Optus was recently ruled out by Singtel following reports that talks over a potential stake sale had fallen apart.
Singtel added that Optus expects non-cash impairment provisions for its enterprise fixed access network assets of S$470 million, mainly due to weaker outlook, higher cost of capital and gloomy macroeconomic outlook.
“Singtel is on track to pay the top portion of its dividend policy for the financial year ended March 31, 2024,” the Singapore-based telecoms giant said.
($1 = 1.3616 Singapore dollars)