Singapore Telecommunications Ltd. (Singtel) is set to bolster its shareholder returns through an expanded asset monetisation programme, according to a recent report by S&P Global Ratings. The telecommunications giant aims to repurchase up to S$2b of shares over the next three years, supplementing its core dividends and a “value realisation” dividend announced in 2024.
Singtel’s asset recycling programme, initially valued at S$6b, has been increased to S$9b and will span the next three to four years. This initiative is expected to generate cash proceeds of S$2.4b to S$2.6b in fiscal 2026, up from S$1.9b in fiscal 2025. A significant portion of these proceeds includes the recent S$2b sale of a 1.2% stake in Bharti Airtel Ltd., completed on 16 May 2025.
Despite the increased spending on shareholder returns, Singtel’s capital expenditure will remain high, focusing on network enhancements and growth areas such as data centres and artificial intelligence. The company anticipates capex to be between S$2.4b and S$2.6b annually for fiscals 2026 and 2027.
Singtel’s adjusted EBITDA is projected to decline by S$250m to S$350m in fiscal 2026, before recovering in subsequent years. This is attributed to a reduction in dividends from associates and the impact of a stronger Singapore dollar on its Australian subsidiary, Singtel Optus Pty Ltd. However, cost reduction efforts and a recovery in Optus’ mobile segment are expected to partially offset these challenges.
Looking ahead, Singtel’s earnings are expected to rise in fiscals 2027 and 2028, driven by improvements in Optus’ performance and contributions from new data centres. The company’s debt-to-EBITDA ratio is anticipated to remain within acceptable limits, providing further financial flexibility.
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