Singapore Telecommunications (Singtel) reported a significant 42.9% increase in net profit for the first quarter ended June 30, reaching S$690 million, up from S$483 million the previous year. This notable rise was largely driven by a one-time exceptional gain resulting from Singtel’s reduction of its stake in Indian telecom giant Bharti Airtel, from 28.9% to 28.7%, and the sale of capital assets by its associate Globe Telecom.

The telecom provider also benefited from Globe Telecom’s sale of telecommunications towers. Singtel holds nearly a 47% stake in Globe Telecom, contributing further to the exceptional gain.

Excluding the exceptional gain, Singtel’s core profit for the quarter was S$603 million. CEO Yuen Kuan Moon highlighted improvements in core businesses in Singapore and Australia, which helped counterbalance the reduced contributions from regional associates, primarily impacted by currency fluctuations in Africa.

Singtel’s Australian unit, Optus, saw a 4.2% increase in operating earnings to S$475 million ($360.59 million), driven by higher postpaid plan prices and a growing prepaid customer base. Despite past challenges, including a major cyberattack in 2022 and a recent outage, Optus is benefiting from cost reductions and recent tariff hikes.

Following the earnings report, SingTel’s shares climbed up to 2.4% to S$2.98, marking their highest level since August 1. The company also projected high single- to low double-digit growth in operating earnings for the full fiscal year.