Singtel: More than Singapore, more than a Telco

For decades, Singtel has been an instrumental part of Singapore's growth story, establishing itself as a household name for all Singaporeans. Whether it’s making a call, surfing the web, or streaming content, Singtel has been there, connecting us to the world.

But Singtel is not just that. For investors, Singtel presents a rare and compelling dual opportunity — as a reliable dividend play and exciting growth stock. Beyond its consistent dividend returns to shareholders, Singtel is also capitalising on the artificial intelligence and digitalisation boom. With its strategic investments in 5G, digital services and infrastructure, Singtel is poised to be at the forefront of digital transformation.

Dive in with us as we explore how Singtel is dialling up its game, and why it might just deserve a spot on your investment speed dial.

Singtel has long been recognised as a reliable dividend stock, consistently rewarding shareholders with attractive payouts. This commitment to providing steady income is underpinned by the company’s strong financial foundation, characterised by robust cash flows and a healthy balance sheet.

This lifts its dividend yield to more than 6%, up from an average of about 4% .

Unbeknownst to many, Singtel is also one of the largest data centre owners in Singapore, and is rapidly expanding its presence in the region.

Its growing footprint has not gone noticed. In September 2023, KKR, one of the world's largest alternative-asset managers, announced a $1.1 billion investment for a 20% stake in Singtel’s regional data centre business, valuing Singtel’s overall regional data centre business at S$5.5 billion.

In a sign of Singtel's regional data centre ambitions, a Singtel-KKR consortium announced a $1.75 billion investment in June in data centre provider ST Telemedia Global Data Centres — said to be this year’s largest digital infrastructure investment deal in South-east Asia.

And riding on the AI bandwagon, Singtel has joined the NVIDIA Partner Network Cloud Programme and will bring NVIDIA’s full-stack AI platform to enterprises across the region. Singtel’s NVIDIA-powered AI Cloud will be hosted by Singtel’s Nxera regional data centre business, which will be developing a new generation of sustainable, hyper-connected AI-ready data centres.

The data centre business posted EBITDA of S$163 million for the full year ended March 2024, but Mr Arthur Lang believes this is just the beginning. "Two years later, with all these build up, we're going to more than double the EBITDA of the company. So this is the growth that we are seeing," he said.

With nearly S$1 billion in EBITDA for FY2024, one — an 8%year-on-end jump —one would think that Singtel would be happy to sit tight on its success.

But the company is not resting on its laurels.

"As part of the Singtel28 strategy, we are going to build up our EBITDA contribution from our growth engines to more than 20%. There means a further EBITDA growth of easily 3-400 million, effectively a doubling of EBITDA," Mr Arthur Lang said.

The future of tech is unfolding and Singtel is at the forefront. Don't let this opportunity slip through your fingers!

In just 60 minutes, you'll discover:

– How Singtel's supercharged dividend strategy could boost your portfolio

– The secret behind Singtel's S$5.5 billion data centre valuation

– Why global tech giants are betting big on Singtel's AI infrastructure

Plus, get exclusive insights from Singtel's CFO, Mr. Arthur Lang, on the game-changing Singtel28 strategy.

Happy trading!

Team moomoo

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