Financial Year ended 31 March
Financial Year ended 31 March
Financial Year ended 31 March
Financial Year ended 31 March
2019
2018
Change
Change in constant currency (1)
(S$ million)
(S$ million)
(%)
(%)
Operating revenue
17,372
17,268
0.6
3.7
EBITDA
4,692
5,051
-7.1
-3.9
EBITDA margin
27.0%
29.2%
Share of associates’ pre-tax proﬁts
1,536
2,461
-37.6
-36.2
EBIT
4,006
5,261
-23.9
-21.8
(exclude share of associates’ pre-tax proﬁts)
2,470
2,801
-11.8
-9.2
Net ﬁnance expense
(355)
(345)
2.9
6.2
Taxation
(850)
(1,344)
-36.8
-35.8
Underlying net proﬁt (2)
2,825
3,593
-21.4
-19.1
Underlying earnings per share (S cents) (2)
17.3
22.0
-21.4
-19.1
Exceptional items (post-tax)
270
1,880
-85.7
-85.2
Net proﬁt
3,095
5,473
-43.5
-41.8
Basic earnings per share (S cents)
19.0
33.5
-43.5
-41.8
Share of associates’ post-tax proﬁts
1,383
1,823
-24.1
-21.8
management discussion and analysis .
notes : -1 assuming constant exchange rates for the australian dollar united states dollar and / or regional currencies -indian rupee indonesian rupiah philippine peso and thai baht from the previous year ended 31 march 2018 -fy2018 .
-2 underlying net profit refers to net profit before exceptional items .
the group has executed well on its strategy amid challenging industry business and economic conditions .
the fundamentals of the core businesses remained strong and the group gained market share in mobile across both singapore and australia led by product innovations content and services .
amobee and trustwave continued to scale and deepen their capabilities while the regional associates further monetised the growth in data as smartphone adoption increased .
leveraging on the group ’ s strengths and customer base singtel continued to build digital ecosystems in payments gaming and esports .
the group has executed well on its strategy amid challenging industry business and economic conditions .
the fundamentals of the core businesses remained strong and the group gained market share in mobile across both singapore and australia led by product innovations content and services .
amobee and trustwave continued to scale and deepen their capabilities while the regional associates further monetised the growth in data as smartphone adoption increased .
leveraging on the group ’ s strengths and customer base singtel continued to build digital ecosystems in payments gaming and esports .
in constant currency terms operating revenue grew 3 .
7 % driven by increases in ict digital services and equipment sales .
however ebitda was down 3 .
9 % mainly due to lower legacy carriage services especially voice and price erosion .
with 6 % depreciation in the australian dollar operating revenue was stable while ebitda declined 7 .
1 % .
depreciation and amortisation charges fell 1 .
2 % but rose 2 .
7 % in constant currency terms on increased investments in mobile infrastructure network spectrum and project related capital spending .
depreciation and amortisation charges fell 1 .
2 % but rose 2 .
7 % in constant currency terms on increased investments in mobile infrastructure network spectrum and project related capital spending .
consequently the group ’ s ebit -before the associates ’ contributions declined 12 % and would have been down 9 .
2 % in constant currency terms .
consequently the group ’ s ebit -before the associates ’ contributions declined 12 % and would have been down 9 .
2 % in constant currency terms .
consequently the group ’ s ebit -before the associates ’ contributions declined 12 % and would have been down 9 .
2 % in constant currency terms .
in the emerging markets the regional associates continued to invest in network spectrum and content to drive data usage .
pre-tax contributions from the associates declined a steep 38 % mainly due to airtel and telkomsel the group ’ s two largest regional associates .
airtel recorded operating losses on sustained pricing pressures in the indian mobile market .
telkomsel ’ s earnings fell on lower revenue due to fierce competition in indonesia in the earlier part of the financial year when the mandatory sim card registration exercise took effect .
including associates ’ contributions the group ’ s ebit was s $ 4 .
01 billion down 24 % from last year .
net finance expense was up 2 .
9 % on lower dividend income from the southern cross consortium and higher interest expense from increased borrowings .
with lower contributions from the associates underlying net profit declined by 21 % .
exceptional gain was lower as fy 2018 was boosted by a s $ 2 .
03 billion of gain on the divestment of units in netlink trust .
consequently the group recorded a net profit of s $ 3 .
10 billion down 44 % from last year .
with lower contributions from the associates underlying net profit declined by 21 % .
exceptional gain was lower as fy 2018 was boosted by a s $ 2 .
03 billion of gain on the divestment of units in netlink trust .
consequently the group recorded a net profit of s $ 3 .
10 billion down 44 % from last year .
the group has successfully diversified its earnings base through its expansion and investments in overseas markets .
on a proportionate basis if the associates are consolidated line-byline operations outside singapore accounted for three-quarters of both the group ’ s proportionate revenue and ebitda .
the group ’ s financial position and cash flow generation remained strong as at 31 march 2019 .
free cash flow for the year was up 1 .
2 % to s $ 3 .
65 billion .

Question: Why did operating revenue increase?
Answer: increases in ICT, digital services and equipment sales