According to an earlier Reuters poll of five analysts, SingTel was expected to deliver net earnings of between S$507 million and S$561.6 million for the three months.
"The economic downturn has significantly influenced the demand for telecoms services," said SingTel president and CEO Lee Hsien Yang at press conference.
Total revenues, nonetheless, rose 1.2 percent year-on-year to S$1.24 billion for the quarter.
According to SingTel, its highest revenue contributor was the international telephony business, which made up 24 percent, or S$304 million, of total revenue. The business declined nine percent year-on-year due to competitive pricing.
The highest growth unit was the public data and private network business, which contributed S$303 million to the group's turnover. Revenue from this business segment, which includes leased lines and internet-related services, grew 25 percent over the same quarter last year.
Meanwhile, the mobile communications business -- which encompasses mobile, paging, maritime and aeronautical services -- grew 0.5 percent to S$220 million, representing 18 percent of the group's turnover in the first quarter.
Overseas investments Last week, SingTel extended -- for the second time -- its takeover offer deadline for Cable & Wireless Optus by a month to September 3, pending approval from the Australian Foreign Investment Review Board (FIRB). SingTel first extended the deadline in June by a month to August 3.
On the protracted bid, Lee would only say: "The transaction is going well and is on track. We understand that the transaction takes time, but we will cooperate with the authorities (to finalise the deal)."
He declined to comment on whether SingTel was close to finalising a deal with Malaysia's Maxis.
