Southeast Asia’s largest phone company, Singapore Telecommunications Ltd. posted a decline in profits for the first quarter, attributed to lower earnings from regional businesses such as Bharti Airtel in India. The reports of drop in profits were rather unexpected.

The company’s net income slump 2.9 percent to $750 million from $776.42 million in the three months ended June; whereas market observers had predicted a rise in profits to $815.77 million.

In the wake of Bharti Airtel’s lower earnings for six consecutive quarters, in addition to the appreciation in the Singapore dollar against eight major Asian currencies this year, SingTel’s revenues from international markets have greatly slowed down. On the other hand, the Optus unit in Australia has positive news for the company. The Australian unit’s earnings saw an increase buoyed by currency gains and customers won from rivals.

The combined earnings from the company’s international partners that include Bharti in India and Africa, Telkomsel in Indonesia, Advanced Info Service Pcl in Thailand and Globe in the Philippines are worth $388.54, down by 10 percent as compared to last year.

While Earnings before interest, tax, depreciation and amortization from Singapore operations slumped by 4 percent to $466.74 million, in the wake of costs for the company’s mioTV service despite revenues increasing by 2 percent.

In contrast, Sydney-based Optus saw 1 percent increase in earnings to reach $568 million; attributed to new mobile customers joining the network.

Apparently, Vodafone Hutchison’s loss is Optus and Telstra Corp’s gain. The former had reported losing 375,000 customers in the six months ended June.

While Telstra, the biggest telephone company in Australia posted earnings for the second half that market observers’ forecasts on the back of new customer net additions in the mobile segment and also, cost cutting.

According to a statement released by SingTel, the company owns minority stakes in six operators with businesses across 25 countries, and has 416 million mobile phone customers

The company does own whole units in Australia and Singapore while minority stakes in operators across India, Pakistan, Bangladesh, Thailand, the Philippines, and Indonesia.

India’ Bharti Airtel, of which SingTel owns a stake, posted a drop in quarterly profit by 27 percent; attributed to higher borrowing costs and the start of new services.