Performance analysis - SingTel vs Telstra
Part A
SingTel (Singaporean-owned Company) and Telstra (Australian-owned Company) are leading corporations in communication with major businesses in fixed telephony, mobile phone and Internet. The two companies each have more than a hundred years of experience in telecommunication with domestic and international markets. Although they both have subsidiaries and joint ventures overseas, Telstra’s concerns are limited to Asia-Pacific and North America markets, while SingTel focuses on a wider range including Asia-Pacific, North America, Europe and Middle East. Optus – a SingTel subsidiary - is the second largest telecommunication provider in Australia whose Earnings Before Interest, Tax, Depreciation And Amortization (EBITDA) is approximately 50 % of SingTel consolidated EBITDA. Although both companies are listed on the Australian Stock Exchange (ASX), Telstra is also listed on the New Zealand Exchange (NZX) while SingTel is listed on the Singapore Exchange (SGX). Regarding company structure, both companies have a Group Chief Executive Officer and an Audit Committee.
SingTel’s financial reports are prepared in accordance with the Singapore Financial Reporting Standards (FRS) under Singapore Companies Act whereas Telstra’s financial reports are prepared according to the Australian Accounting Standards (AAS) under Australian Corporations Act. The differences in year ended (31 March and 31 June) and figure presented in Annual Reports (Singaporean dollars and Australian dollars) would not affect the analysis.
Part B
1. Introduction: This report is aimed at giving investors an insight into the performance of SingTel and Telstra – two leading companies in communication. Based on the SingTel Annual Report 2007, 2008 and the Telstra Annual Report 2007, 2008, financial ratios of the two companies are calculated and evaluated in terms of profitability, liquidity, stability and attractiveness. The report also provides recommendation for investor with details of ratios
SingTel (Singaporean-owned Company) and Telstra (Australian-owned Company) are leading corporations in communication with major businesses in fixed telephony, mobile phone and Internet. The two companies each have more than a hundred years of experience in telecommunication with domestic and international markets. Although they both have subsidiaries and joint ventures overseas, Telstra’s concerns are limited to Asia-Pacific and North America markets, while SingTel focuses on a wider range including Asia-Pacific, North America, Europe and Middle East. Optus – a SingTel subsidiary - is the second largest telecommunication provider in Australia whose Earnings Before Interest, Tax, Depreciation And Amortization (EBITDA) is approximately 50 % of SingTel consolidated EBITDA. Although both companies are listed on the Australian Stock Exchange (ASX), Telstra is also listed on the New Zealand Exchange (NZX) while SingTel is listed on the Singapore Exchange (SGX). Regarding company structure, both companies have a Group Chief Executive Officer and an Audit Committee.
SingTel’s financial reports are prepared in accordance with the Singapore Financial Reporting Standards (FRS) under Singapore Companies Act whereas Telstra’s financial reports are prepared according to the Australian Accounting Standards (AAS) under Australian Corporations Act. The differences in year ended (31 March and 31 June) and figure presented in Annual Reports (Singaporean dollars and Australian dollars) would not affect the analysis.
Part B
1. Introduction: This report is aimed at giving investors an insight into the performance of SingTel and Telstra – two leading companies in communication. Based on the SingTel Annual Report 2007, 2008 and the Telstra Annual Report 2007, 2008, financial ratios of the two companies are calculated and evaluated in terms of profitability, liquidity, stability and attractiveness. The report also provides recommendation for investor with details of ratios