As a Singtel shareholder and finance enthusiast, I was thrilled to sit down with Singtel’s Managing Director of Group Finance, Ms. Gan Siok Hoon, to discuss Singtel’s remarkable transformation and its forward-looking strategies under the ST28 initiative. If you are a Singtel shareholder or you are interested in the stock, you should continue reading.
Singtel is no stranger to any investor in Singapore. And you are probably like me, having mixed emotions with Singtel shares. Why?
Listed since 1993, Singtel is one of Asia’s largest telecom companies. While it was once a “must-own” stock due to its stability and high dividend, its share price has struggled to impress. The highest price of Singtel in history was SGD 4.53, reached on April 15, 2015. Since then, the share price has been on a decline.
The past decade has been a trying time for Singtel investors.
What was Singtel’s Challenge?
To be fair, the entire telecom industry faced intense competition and challenges:
Decline of Traditional Telco Business and Roaming Revenue: Consumers shifted to digital services and Over-The-Top (OTT) players like WhatsApp, Zoom, and Microsoft Teams reduced voice and SMS revenue. They are called “Over-The-Top” because they bypass traditional television and radio distribution methods and allow users to access content directly through the Internet.Increased Capex and Delayed 5G Adoption: We all know Telco, like Singtel has higher capital expenditures to maintain network quality and support a 5G rollout. Yet the 5G adoption in Singapore and probably in the world is slower than expected.Technological Disruptions: the technologies are rapidly evolving in recent years. Yet it takes time for the heavy investment to pay back.
Singtel also faced unique challenges:
Optus’ Underperformance: Singtel’s Australian subsidiary, Optus, faced intense competition and regulatory challenges.Regional Associates’ Weakness: Singtel’s regional associates, such as Bharti Airtel and Telkomsel, faced challenges in their respective markets. Singtel also faced unique
