Singtel warns of operating challenges due to rising inflation, interest rates

Singapore Telecommunications Limited also known as Singtel on Wednesday (August 24) warned of a challenging operating environment due to rising inflation and interest rates. The company’s statement comes after it reported a 41.3 per cent jump in its profits during the first quarter of 2022.

As rising labour and fuel cost create pressure on companies around the world, many have proposed strict measures to keep their work and profit margins intact.

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According to Singtel’s Chief Executive, Yuen Kuan Moon: “We will need to stay nimble and contend with these realities should they put further pressure on our costs and bottom lines.”

The telco said its net profit for the first quarter surged 41.3 per cent to $628 million from $445 million last year.

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The company’s jump in profit can be attributed to Bharti Airtel, partly owned by Singtel. Bharti Airtel reported a 22 per cent jump in its profits earlier in August as a result of high-speed 4G subscriber additions and high data consumption.

“This set of positive results reflect the progress made on our strategic reset designed to strengthen our core, unlock the value of our assets and grow new digital businesses,” said Mr Yuen.

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However, Singtel expects the operating environment for the group to remain challenging due to rising inflation, interest rates and constant changes in the global supply chain.