Singapore Telecommunications (Singtel) saw its stock soaring 3.12% in intraday trading on Thursday, following the announcement of a S$2 billion share buyback program and a return to profitability in its latest financial results.
The telecommunications giant reported a net profit of S$2.8 billion for its second half ended March 2025, marking a significant turnaround from a net loss of S$1.3 billion in the previous corresponding period. This impressive recovery was primarily driven by a net exceptional gain of S$1.51 billion, mainly from the partial disposal of its Comcentre property and share of Airtel's gains.
In addition to the strong financial performance, Singtel unveiled its first-ever share buyback program of up to S$2 billion, to be implemented over the next three years until fiscal year 2028. This move, part of the company's capital management strategy, aims to enhance shareholder value. The company also proposed a final dividend of S$0.10 per share, consisting of a core dividend of S$0.067 and a value realization dividend of S$0.033. These shareholder-friendly initiatives, coupled with the positive financial results, have sparked investor enthusiasm, driving the stock's significant uptick during the trading session.
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