Singapore Telecommunications 1Q10 net profit attributable to shareholders rose by 7.7% yoy to S$ 945m in line with our expectations representing 25.3% of our full year forecast. The results reflect strength in the Singapore and Australian businesses, and the return to earnings growth by the major regional mobile associates.

The Group's revenue for the quarter stood at S$ 3,848m(+1.9% yoy). Data and Internet revenue gained 5.9% to S$392m. Revenue from data services increased 8.6% yoy. Managed Services revenue expanded 11% yoy as SingTel successfully pursued new revenue streams.

Mobile revenue grew 7.1% to S$372m as a result of a larger customer base. SingTel gained 15,000 net new customers, bringing its total mobile customer base to 2.9m or 45.9% of the total Singapore market.

IT and Engineering revenue in the quarter grew 50% to S$271m, and revenue from Revenue from IT and Engineering accounted for 20% of total operating revenue, an increase of 6 percentage points from a year ago.

Optus delivered strong first quarter results with a 12% increase in operating revenue to A$2.20b and continued its strong growth in mobile revenue from a growing customer base of more than 8m.

Pretax ordinary contribution from its regional mobile associates in the quarter rose 12% to S$624m from S$557m a year ago, on improved performance from Telkomsel and mark-to-market gains on foreign currency liabilities for Telkomsel and Bharti.