Why Singtel is very committed to the creation of video game services, broadcasts and financial services – Health Guild News

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Singapore’s largest telecommunications company he said in May this year, which is “open to taking significant minority stakes” in startups focused on financial services, broadcasting and gaming.

This is part of their “strategic recovery” to drive business recovery and growth, among other plans like boosting their 5G business.

The news comes as it hits. The group net benefits it reached 93% during the second half of its year to $ 88 million, up from $ 1.2 billion the previous year.

Singtel said the operational landscape remains a challenge for the telecommunications sector, in part because of Covid-19. The CEO of his group, Yuen Kuan Moon, said that with the digitalization that ASEAN is going through, the company wants to make the most of this growing appetite for digital services.

The group did not disclose specific goals, but expects this focus on digital investments to take several years. Let’s take a closer look at what these new areas of focus mean and what opportunities they present.

Take it forward, players

According to Arthur Lang, CEO of Singtel International a media reports, approximately 65% ​​of the group’s customers are between 18 and 35 years old.

As this group consumes more digital content, games and sports will be the most intense to create interaction with customers.

Telecommunication can have an advantage in this game.

A research report of PWC says having a connectivity infrastructure (what telecommunications have) is a solid foundation for creating new gaming initiatives.

The game can also help increase data usage of telecom companies and increase revenue. PWC claims that telecom companies can also leverage data to generate information about their customers and understand what they want best.

Singtel has been slowly growing its interest in the gaming industry.

Image credit: KR Asia

In March last year, the group, along with Thai Telco AIS and South Korean SK Telecom, announced a US $ 30 million joint venture into a gaming company Storms.

The Storms publishing unit focuses on casual and hyper-casual mobile gaming. According to Singtel, this terrain has less significant competitors compared to the mid-core gaming space it has Garena i Tencent.

Storms is currently working on the early stages of its application, a mobile-based community for gaming news and rewards, which will be released later this year.

Other gaming initiatives in which the group has participated include a sports platform and a PVP Sports Championship.

Increased funding capabilities for 5G

Funding isn’t usually the first thing people think of when thinking of a phone company, but Singtel has long been involved in that space.

singtel dash
Image credit: The MileLion

In 2014 he launched a mobile wallet Singtel Dash. After a slow start due to a slow uptake rate, the results seem to finally show.

Dash’s monthly active user base in March this year rose 43%, according to the group in its latest earnings report. The value of Dash’s remittance transactions also tripled over the last period due to the growing remittance market.

Singtel expects growth to continue now that users can send and receive via PayNow in non-bank electronic wallets like GrabPay and Singtel Dash.

singtel 5g
Image credit: Rendy Aryanto via VVS.sg

The technology also has an advantage thanks to its 5G connectivity and you are likely to rely on it to grow your digital business. That says that 5G will improve the security processes of financing platforms and drive more online financial transactions.

The high bandwidth provided by 5G will also make data collection from these services more robust.

It is likely to make bigger waves in this space in the coming months. In 2020, the group’s joint venture with Grab won the bid to obtain a full digital banking license, granted by Singapore’s central bank. The bank will operate early next year.

Singtel also doesn’t shy away from funding rounds. For example, he guided and supported Telkomsel’s participation in a $ 100 million Series B financing round in Indonesia’s LinkAja e-portfolio along with other investors such as Grab and Gojek.

He also supported Globe, whose fintech arm Mynt recently raised US $ 175 million at a valuation close to US $ 1 billion.

Beware of streaming wars

The Covid-19 pandemic has caused a shock in the demand for video streaming services. In fact, global surplus revenue (OTT) increased by 26.2% in 2020 to A $ 78 billion (US $ 58.1 billion).

Growth of video transmission
Global OTT transmission services are expected to increase over the next few years / Image credit: PWC

Research firm PWC says the transmission boom has put the industry on a new growth trajectory. Global broadcasting revenues will reach $ 109 billion (US $ 81 billion) by 2025.

However, it will be an uphill battle to compete, as larger players like Netflix and newcomer Disney + dominate market share.

singtel distribution
Image credit: Singtel

Singtel CAST, its digital broadcasting service is set up to feel the heat and the television should reflect on it when you invest more in this space.

Data from the analysis firm SimilarWeb showed Internet traffic to Singtel CAST during the month of May with less than 190,000 visits. This is significantly low, compared to over 400 million views for the streaming giant YouTube and about 43 million visits per He is borntflix.

Singtel CAST web traffic
Visitor traffic on popular broadcast sites versus Singtel CAST / Image credit: Similarweb

In fact, Singtel’s previous earnings reports show viewers of CAST and TV Go that it fell 11% year-on-year to 191,000 from the second half of its fiscal year.

This came after it reached 215,000 users in the same period a year ago, before dropping to 204,000 at the end of last year, which shows the telecom company will have some work to do to maintain its clients.

PWC says companies like Singtel will need to look at strategic goals to grow their service. To achieve short-term growth, companies need to be more measured in their offerings, with a focus on improving the customer experience.

Much of the setbacks

While the group has been progressively exploring new opportunities beyond its core business, the strategy appears to be in a “gain, lose” position.

hooq
Image credit: Hooq

In trying to succeed in this digital space, he has faced some setbacks. This includes the file closing its streaming video platform Hooq last year, and the decision to close its HungryGoWhere restaurant review platform last month.

The group had filed for liquidation for its streaming video platform Hooq, as it has not been able to grow enough to generate sustainable yields.

The video service, which was created in 2015, recorded a loss of A $ 84 million (US $ 62.5 million) during its 2019 fiscal year. According to regulatory records, Singtel had already injected at least capital $ 161 million (US $ 120 million).

hungrygowhere
Image credit: HungryGoWhere

As for HungryGoWhere, the closure was the result of “serious challenges” to the industry.

The decision coincides with the group’s attempt to refocus its business. He agreed to exit the restaurant reservation market after a detailed review of HungryGoWhere’s prospects.

Experts have said the exits are silver liners as they allow Singtel to focus on core capabilities as well as other sustainable digital innovations that can help navigate the pandemic.

On his strategic recovery note, the group called on investors who have complementary strengths and can provide synergies to drive the growth of their businesses.

As Yuen, CEO of Singtel Group, says last income statement: “This year’s results are disappointing, given COVID-19’s unprecedented headwinds and ongoing structural challenges … We will take advantage of this massive digitization with plans for a strategic recovery to drive recovery and growth.”

Featured Image Credit: FMT News





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