M1’s FY2009 net income up marginally at SGD150.3m

Singaporean fixed and wireless operator MobileOne Asia (M1) reported full-year net profit of SGD150.3 million (USD107.9 million) in 2009, up just up 0.1% from the previous year and broadly in line with expectations. Revenues stood at SGD782 million it said, down 2.4% year-on-year in a difficult economic climate and trading environment. However, the telco’s EBITDA margin on service revenue improved by 1.3 percentage points to 44.2% as a result of ongoing cost management initiatives. Despite the relatively uninspiring performance M1 said it remained optimistic about the year ahead. The cellco added a net 40,000 new customers in 2009 for an end-year total of 1.758 million. Its decision to sell the almost ubiquitous Apple iPhone last December also contributed to the stable earnings, it added. Going forward, M1 plans to boost its market share across its range of cellular and broadband services and also plans to enhance revenues by offering more bundled services to consumers. The telco’s broadband consumer base continued to grow last year, while revenue from non-voice services also increased slightly, contributing 26% of service revenue, up from 23.4% in the corresponding year-earlier period. Based on its current outlook, M1 says FY2010 earnings are expected to be comparable to 2009.