Reporting first half profits up 13.6% at the equivalent of $602.5m, Singapore Telecommunications Ltd says the half year continued to see strong growth in the mobile communications and leased circuit businesses, although the growth in the volume of international calls, while satisfactory, has not been as robust as the growth in the same period last year, reflecting slower growth in the Singapore economy. International direct dial traffic grew by 12.9%, and the performace of associated and joint venture companies improved significantly as the new investments in Belgacom NV and PT Bukaka SingTel International started to contribute to results of the group. Associate companies contributed $785,000 to interim profits against a loss of $22.2m in the same period last year. The company says that despite the slowing in the economy, it is confident of maintaining its double digit earnings growth forecast for the full year, and chairman Koh Boon Hwee said later that the company aimed to maintain double digit growth next year. He said a lot of the profit growth would depend upon the performance of the Singapore economy and there would be some pressure on margins. He admitted that while Belgacom was contributing now, it would face challenges beyond 1998 when deregulation in Europe’s telecommunications market took place. Singapore Telecom says that it now has total investments of about $1.45bn in 59 joint ventures and strategic deals in 22 countries around the world.
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