We are Looking for More Stakes in Warid Telecom: Singtel

warid_singtelSingapore Telecommunication has said, it is keenly eyeing acquisitions after warning that revenue growth in its home market would slow down, due strong Singapore dollar.

Singtel earlier posted a 17 percent drop in quarterly net profit, which is much smaller than expected.

Facing a saturated domestic market of just 4.8 million people, SingTel has spent Singapore 18 billion dollars to invest in countries such as India, Indonesia, and in the bigger Australian market. Revenue growth in Singapore is expected to slow to single digits in the year to March 2010, the company said.

Singtel did not elaborate on the targets or markets where it is eyeing acquisitions but pointed on Thursday to Pakistan as a mobile market it expected consolidation. SingTel already owns a 30 percent stake in Pakistan’s Warid Telecom.

Reportedly, Singtel is already in talks with Dhabi Group for sale out of more stakes of Waridtel. Previously, China Mobile also tried its luck to acquire Warid, as a whole entity; however, the deal didn’t go through.

Currently, market sources have confirmed us that Singtel-Dhabi Group deal is likely to happen before June 2009, while we know that Mr. David Lee of Singtel has already taken charge as CCO of Warid Telecom.

A senior Warid Telecom official while speaking with us said that it’s not confirmed yet, but if happens, this deal will play positive for the industry.

Market experts are also looking forward to such a acquisition, which will get Warid into a strong position, especially in a scenario when 3G license is going to be auctioned soon.

Download Singtel’s Financial Report for 2009 here (PDF file – 740 KB)

Tech reporter with over 10 years of experience, founder of ProPakistani.PK

  • usman ali

    thts a good news may b after dis deal warid may strt offering unlimited sms for 3rs like zong.

  • sunny

    PTA should take up some strong action for the call rates , as the low call rates had bad impact on Telecom Industry.

  • Farhan Butt

    Does this mean Singtel will pay of Warids debts due to their Marketing Fraud & Scandals. They are all crooks

    • Reportedly, Warid is told to strengthen its balance sheets (if they want good share value) – that is why we see plenty of cost cutting tactics going on.

      At same time, i am sure Warid management would be looking into other things that can damage their shares’ price when evaluated.

  • Shafaat

    I wish that this deal between Singtel and Warid happens. In this way the franchisees and vendors of Warid Telecom, suffering due to non-payment of their claims, may be able t get their due moneys.

    Rumour is that to make Warid’s financial position better in eyes of Singtel, there is expected to be a decrease in franchisees commissions, and also reduction in staff of Warid.

    GOD help us all.

    • Tariq

      they have already cut down incentives, closing their business centers

      • Shafaat

        Tariq. you are correct.
        But the bad news is there are still more job cuts, and salary cuts expected in June.
        Further, franchisees are being pressurized to forgoe their genuine commission claims of years 2005 to 2007.
        And their normal commissions are being paid after 3 to 4 months delays.
        In short situation is getting from bad to worse.

  • Tariq

    i personally think if singtel comes in it will be good for us. we have casestudy of Paktel.

    But again, ya tu doob jayain gay ya bach jayain gay – koi kuch nahi keh sakta

  • Farhan Butt

    I really hope everyone stung by these crroks gets their money back. I cant see it happening but have we ever though, if these guys dont care about theri own, what i mean is their employees then do you think they care about their customers??? NO. Throw your Warid SIMS away guys and defeat these cheats

  • Akhtar

    Warid’s main problem is its management. There is an ongoing clash between bankers and telecom expereinced people. everybody is trying to get their stakes within the company instead of realizing their true competition is not among them infact the other companies.
    The other main problem is FNF culture. Untill this culture is not curtailed, there is no good hope for warid. All this misfortune can end if Singtell comes in power then this giant can again stand on its feet-INSHAH ALLAH

    • Shafaat

      Mr Akhtar. I agree with you 100%. Till the time the FnF culture does not ends in Warid Telecom there is not hope of development or progress here.

      • Babur Khan

        In every society and culture we have black sheeps around. Warid has few but I presume they have been handled well in past few months. And I agree, one part infected had an adverse effect on other’s, of the body.At the same time all entities have good people along the bad and the ugly. It’s only the stability time every organization needs from which Warid is going through.

        • Shafaat

          Mr Babur, you have a good point. But don’t you think that Warid Telecom is taking too long to get stable ?
          In current month of May, 4 years of operations will be complete. And till now the issues standing on day-1 exist plus more added periodically.

          • Babur Khan

            Yes agreed Shafaat. Also, I observe few very strange facts as well. Despite of few mismanagements in perticuler areas, lack of market presence and slow pace of coverage this company is able to secure 18.8% of market share (Jan,09)in comparison to 21.5% share of Telenor. I’m not trying to depreciate Telenor as it is a very worthy competitor. But after all this expansion race and market exposure if we have only 2.7% share difference, thats a good job done by Warid management.And yes, they have certain expenditure side issues which needs to be taken care of ASAP.


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