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M1 net profits up on higher mobile spending and lower expenses

19 Apr 2006

Singaporean wireless operator MobileOne Asia (M1) reported a 12% rise in net profit from SGD40.1 million (USD25.04 million) to SGD45 million for the three months to 31 March 2006, thanks in the main to lower operating expenses. Revenue for the quarter was SGD189.5 million, unchanged on the previous year, while operating expenses fell 5.3% to SGD131.7 million, partly due to lower advertising and promotional costs, and a write-back of over provisions in operating costs. Despite beating analysts’ estimates of net profit of SGD39.3 million, M1 is forecasting single digit growth in full year net income. The cellco ended March with 1.28 million mobile users, thanks to the net addition of 29,000 subscribers in the quarter.

In a separate story, M1 has cut the cost of its 3G service to better align it with the tariffs charged by its fixed line broadband unit. The price of its 3G SunSurf 100 data plan, previously SGD199 (USD124) a month for unlimited use, has been slashed to SGD68.

Singapore, M1

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