SINGAPORE -- Singapore Telecommunications Ltd. (SingTel) announced a three-fold jump in first quarter earnings and expects foreign affiliates to be a major revenue driver amid sluggish conditions at home.

In the three months to June, net profit rose 217.8 percent on the year to reach an all-time quarterly high of 1.2 billion Singapore dollars (682 million US) despite a drop in income at home. Revenues rose 20 percent to 2.96 billion dollars.

"For yet another quarter, the group's regional associates delivered higher profits and dividends," chief executive Lee Hsien Yang said. "With the success of our international expansion strategy, the group is well positioned for continued growth even though the outlook for the Singapore economy remains challenging."

SingTel group's results were also boosted by exceptional gains of 700 million dollars from the sale of its 69 percent stake in postal operator Singapore Post and shares in its Yellow Pages phone directory business.

Lee told journalists the operator was keen to raise its current 29.1 stake in Philippine affiliate, Globe Telecom, but only for the right price and terms.

"I think it is too early for us to say anything further except that discussions are ongoing," Lee said. He told NewsRadio 93.8 that "there's still opportunities for growth because the Philippines' penetration rate for mobile (telephones) is about 21 percent and the Philippines is a phenomenal market for SMS texting."

Lee said talks were still ongoing with the related parties after a unit of Germany's Deutsche Telekom AG said it was keen to sell its entire 24.8 percent stake in Globe Telecom to its joint venture partners including SingTel. Syed Al-Idid, regional telecoms analyst at ING Financial Markets, said the June results were "a good set of numbers but were mainly boosted by the exceptional gains."