Singtel reviewing digital companies after $907 million hit

Singapore Telecommunications Ltd (STEL.SI) stated on Friday it has begun a strategic overview of digital advertising arm Amobee and cyber-security enterprise Trustwave.

Singtel, whose largest shareholder is state investor Temasek Holdings (TEM.UL), additionally stated it expects to report full yr web distinctive losses of S$1.21 billion ($907 million).

Singtel has been making an attempt to diversify for years amid slowing development in its conventional provider enterprise. It purchased Amobee for $321 million in 2012 and Trustwave for $770 million in 2015.

The overview marks the primary main overhaul beneath Yuen Kuan Moon, who grew to become chief govt officer in January.

“This overview might contain the restructuring of product or enterprise segments, a full or partial divestment or enterprise combos with different trade gamers,” Yuen stated.

“We’re open to all forms of strategic partnerships and offers together with inviting buyers who’ve complementary capabilities and may improve the worth of the companies.”

Singtel, southeast Asia’s largest telecommunications operator, stated it booked an impairment cost of S$589 million on Amobee and S$336 million on Trustwave within the second half of the yr.

Yuen, who expects the overview of the 2 companies to take as much as 12 months, stated the coronavirus pandemic had impeded their skill to scale up.

The corporate plans to unveil a brand new development technique when it experiences annual outcomes on Might 27. Annual web revenue final yr plummeted about 65% to the bottom in additional than twenty years.

Optus, Singtel’s Australian subsidiary, may also file non-cash impairments and write-downs of A$197 million (S$204 million), primarily associated to its legacy fastened entry networks, in addition to an distinctive cost of A$98 million associated to overview of its employees compensation.

Singtel shares had been buying and selling 1.7% decrease at S$2.37 on Friday morning.

($1 = 1.3336 Singapore {dollars})

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