M1 1Q12 revenues up 3.9%, but profits dip on SACs

18 Apr 2012

Singaporean full service provider M1 Limited (M1) says that revenues for the January-March 2012 period climbed 3.9% year-on-year to SGD191.7 million (USD153.4 million) on the back of solid subscriber growth and a higher contribution from fixed services, but net income dipped 5.3% to SGD40.3 million due to higher subscriber acquisition costs (SACs). On a more positive note, the carrier noted that net profits increased by 7.1% on a quarter-on-quarter basis.

Revenues derived from non-voice services rose by 2.2 percentage points y-o-y to account for 36.9% of service revenue in 1Q12, driven by continued growth in the number of smartphone users. M1 said that by the close of the first quarter, smartphone uptake reached 69% of total post-paid customers on its network. At the same date the operator counted 2.014 million mobile and 50,000 fixed line subscribers. Commenting on the latest results, Karen Kooi, Chief Executive Officer of M1 said: ‘The growth momentum for mobile data and fixed services revenue, seen in the first quarter, is likely to continue for the rest of 2012. With the completion of the rollout of our LTE network and the Next Generation Nationwide Broadband Network [NGNBN] in the second half of this year, we are well placed to capitalise on data growth in both the mobile and fixed segments … Based on the current economic outlook and barring any unforeseen circumstances, we are maintaining our guidance of stable performance for 2012’.

Singapore, M1 Limited (M1)