M1: First-half net income flat, revenues down

17 Jul 2009

Singapore’s third largest mobile operator by subscribers MobileOne Asia (M1) today announced its unaudited financial results for the six months ended 30 June 2009. The cellco posted net profit of SGD78.9 million (USD54.3 million) in the six months under review, largely unchanged from SGD79.1 million in 1H 2008, although operating revenue of SGD376.9 million was 7.9% lower than the previous year, reflecting what M1 termed a ‘challenging operating environment’. Quarter-on-quarter though, M1’s operating revenue for the three months to 30 June 2009 increased by 2.2% y-o-y, while the 2Q09 EBITDA margin on service revenue rose to 44.8% from 44.7% in the first three months of the year. The company said it has experienced strong demand for data services with revenue for non-voice services increasing 8% year-on-year to constitute 25.1% of overall service revenue. As at 30 June 2009 M1’s total customer base reached 1.669 million, a net increase of 50,000 in three months.

M1’s Board of Directors has declared an interim dividend of 6.2 cents per share, which is the same as for 2008. Commenting on the results, Ms Karen Kooi, M1’s CEO, said: ‘While there are tentative signs of improving economic sentiments globally, sustainable recovery is still uncertain and this may continue to constrain consumer spend. We will focus on improving quality of service to our customers and introduce new initiatives to address growth segments. In addition, we will invest for future growth to position ourselves for new opportunities that will emerge.’

Singapore, M1 Limited (M1)