Singtel expects SGD1.21B charge for FY2021, starts strategic review of two US units

SINGAPORE (CNA) – Singtel said on Friday it had begun a strategic review to consider options for digital marketing firm Amobee and cybersecurity business Trustwave.

Singtel said it expected to record net exceptional losses of SGD1.21 billion in its full-year results, mostly due to impairment of assets and goodwill at the two businesses.

Singtel has been facing slowing growth in its traditional carrier business and has been trying for years to diversify in new sectors.

It bought United States (US)-based Amobee for USD321 million (SGD428 million) in 2012 and completed the acquisition of Trustwave at a reduced price of USD770 million in 2016.

The review marks the first major overhaul since Yuen Kuan Moon took over as Chief Executive Officer in January.

A Singtel booth is pictured at the Money 20/20 Asia Fintech Trade Show in Singapore. PHOTO: CNA

“This review could involve the restructuring of product or business segments, a full or partial divestment or business combinations with other industry players,” Moon said.

“We are open to all types of strategic partnerships and deals including inviting investors who have complementary capabilities and can enhance the value of the businesses.”

The company said it had booked an impairment charge of SGD589 million on Amobee and SGD336 million on Trustwave in the second half of the year.

The remaining carrying values of Amobee and Trustwave will be SGD511 million and SGD695 million respectively, the company said in a bourse filing.

Singtel also expects a SGD204 million impairment charge on Australian telco Optus mainly due to legacy fixed access networks that will no longer be used.

This follows the completion of Australia’s National Broadband Network roll-out and subsequent migration of customers.