Quote: Regional associates below our expectations. Associate contribution was down 25.5% y-o-y compared to our estimate of single digit decline. Assuming no forex change from 2QFY08, associate contribution would have been flat. What surprised us was Bharti’s pre-tax earnings contribution, down 5.1% y-o-y, against our expectations of 10% growth. SingTel has attributed the decline to S$57m fair value loss on Bharti’s foreign borrowings. We did not see this item in Bharti’s results and need to check with management on the disparity. The other associates were more or less in line with our expectations.Unquote .
In addition, don't forget that SingTel is still facing some legal issues with its 35% stake in Indonesian Telkomsel.
In our SingTel article sometime back, we also mentioned that Terria, a consortium led by Optus, which is bidding to build a part government-funded broadband network in Australia,has also recently lost a partner, Australian Capital Territory-based Internet provider, TransACT. And Ooops, it seems SingTel has a lower current asset base than its current liabilities.... It will be interesting to see how Group CEO Chua Sock Koong will navigate this company through these times
Important: The objective of the articles in this blog is to set you thinking about the company before you invest your hard-earned money. Do not invest solely based on this article. Unlike House or Instituitional Analysts who have to maintain relations with corporations due to investment banking relations, generating commissions,e.t.c, SGDividends say things as it is, factually. Unlike Analyst who have to be "uptight" and "cheem", we make it simplified and cheapskate. -The Vigilante Investor, SGDividends Team
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