Shares of Singtel (Z74.SI), Singapore's largest telecommunication company, jumped 3.27% in pre-market trading on Wednesday, following the announcement of a substantial dividend increase and robust financial results for the first half of fiscal year 2025.

The telco declared a total dividend of S$0.07 for 1H FY2025, representing a significant 34.6% increase from the S$0.052 paid out in the same period last year. This dividend comprises a core interim dividend of S$0.056 and a value realisation dividend (VRD) of S$0.014, the latter stemming from Singtel's efforts to recycle capital by divesting non-core assets.

Singtel's financial performance for 1H FY2025 ending 30 September 2024 showed resilience and growth. While operating revenue remained stable year-on-year at S$7 billion, the company reported a substantial 27% surge in operating profit to S$738 million, driven by strong performances from its Optus and NCS divisions. Furthermore, underlying net profit increased by 6% year-on-year to S$1.2 billion, underscoring the company's solid operational execution.

The telecom giant's positive momentum is further supported by its strategic initiatives. In line with its ST28 strategic vision, Singtel has outlined plans to scale its growth engines and maintain a focus on active capital management. This forward-looking approach, combined with the company's strong financial results and generous dividend policy, appears to have bolstered investor confidence, contributing to the pre-market stock surge.

Singtel jumps 2.38% at 2:14 pm, Apr 9th.