Singapore - Singapore Telecommunications, South-East Asia's largest phone company, reported Tuesday a 5.3 per cent fall in first quarter net profit as a stronger Singapore currency cut earnings from overseas affiliates.

For the first quarter ending June 30, the net profit was 878 million Singapore dollars (622 million US dollars), down from 927 million Singapore dollars in the corresponding period a year ago.

"As a high proportion of the group's earnings are from outside Singapore," the financial results are "sensitive to currency movements," a SingTel statement said.

SingTel predicted earnings from its Asian affiliates will rise at the slowest pace in three years as a result of currency movements.

Operating revenue rose 5.9 per cent to 3.78 billion Singapore dollars during the quarter.

Lower earnings were reported by Telkomsel, Indonesia's biggest mobile-phone operator and the Philippines' Globe Telecom.

The profit at Bharti Airtel Ltd, India's biggest phone company, rose 34 per cent to become SingTel's largest overseas earner after attracting a record number of customers during the quarter.

Earnings from SingTel's Asian affiliates account for nearly half its total. (dpa)