Singtel (SGX: Z74) is the next blue-chip company to report its earnings.

Its peer StarHub Limited (SGX: CC3) reported a strong result in the same week while Keppel Ltd’s (SGX: BN4) business update saw the asset manager announce a robust performance.

Singtel also did not disappoint, with the telco upping its interim dividend and handing in a strong financial report card.

Here are five highlights from Singtel’s fiscal 2024 first half (1H FY2024) earnings announcement.

1. A higher underlying net profit

For 1H FY2024, Singtel’s operating revenue dipped by 3.2% year on year to S$7 billion.

Revenue was impacted by weak regional currencies and the telco’s revenue would have risen by 2% year on year on a constant currency basis.

Operating profit inched up 2.2% year on year to S$1.8 billion.

Net profit for the group shot up 82.6% year on year to S$2.1 billion, boosted by an exceptional gain on Singtel’s associate Telkomsel’s integration of IndiHome.

Excluding this item, underlying net profit would have risen by 11.6% year on year to S$1.1 billion.

The telco generated a positive free cash flow of S$1 billion, although this was 30.5% below the S$1.5 billion that was generated in 1H FY2023.

2. Increase in customer base for Singapore offset by lower ARPU

Looking at Singtel’s Singapore division, operating revenue dipped by 3.3% year on year to S$1.9 billion.

Although mobile service revenue grew by 2% year on year following the travel recovery and customer growth, this was offset by lower ICT sales and a drop in TV revenue.

Operating profit for the division slipped by 3.8% year on year to S$442 million.

Singapore’s customer base grew by 3.4% year on year to 4.4 million but average revenue per user (ARPU) fell by 2.7% year on year to S$25.

Singtel saw its mobile customer market share shrink from 46.6% a year ago to 44.9% as of 30 September 2023.

Fixed broadband put up a respectable performance with revenue rising 3.9% year on year to S$125 million with the number of broadband lines inching up 2% year on year to 676,000.

Over at the Pay TV segment, revenue continued its decline, falling by 11.4% year on year to S$36 million.

3. Higher customer base and data usage for Optus

Optus, Singtel’s Australian unit, reported a mixed performance for 1H FY2024.

Revenue increased slightly by 1.4% year on year to A$4 billion, lifted by strong growth in prepaid net connections, higher postpaid ARPU, and cable TV sports uptake due to the FIFA Women’s World Cup.

Operating profit, however, declined by 13.9% year on year to A$141 million.

Optus saw weakness in its enterprise fixed business while inflation also resulted in higher operating expenses.