Investing.com -- Shares in Singapore Telecommunications (SGX:STEL) (Singtel) jumped on Thursday after the company reported a 43% surge in net profit for the first quarter ended June 30.
At 3:17 am (0717 GMT), Singapore Telecommunications was trading 2.8% higher at SGD 2.990.
The boost was primarily driven by a one-time gain from the dilution of its stake in Indian telecom giant Bharti Airtel and the sale of assets by its associate, Globe Telecom (OTC:GTMEY).
Excluding the exceptional items, Singtel’s core profit still managed to climb, indicating underlying strength in the company’s core businesses.
The telecom giant’s Australian unit, Optus, also saw a boost in operating earnings, thanks to price hikes and an increased prepaid customer base.
Additionally, Optus has demonstrated resilience in the face of recent challenges.
““We had a solid start to FY2025 with improvements in our core businesses in Singapore and Australia and momentum in our growth engines in the first quarter,” said Singtel CEO Yuen Kuan Moon.
“This helped mitigate lower contributions from our regional associates due mainly to significant currency headwinds in Africa,” he added.
With a forecast of high single- to low double-digit growth in operating earnings for the full year, the telecom giant appears to be on a strong footing.