M1 reports 9.7% increase in FY 2014 net profit to SGD176m

20 Jan 2015

Singapore operator M1 Limited has published its unaudited financial results for the twelve months ended 31 December 2014, reporting operating revenue of SGD1.076 billion (USD809 million), up 6.8% year-on-year, on the back of higher handset sales. The group said service revenue was up 1.4% to SGD831.1 million, driven by expansion in the post-paid mobile and fixed customer user base, as well as a strong revenue contribution from mobile data. Net profit for FY 2014 was up 9.7% on an annualised basis at SGD175.8 million.

M1 said turnover derived from mobile operations climbed 4.2% y-o-y to SGD671.1 million, fuelled by post-paid take-up, while mobile data generated a 5.7 percentage point increase in revenue and now accounts for 47.3% of total service revenues. At 31 December M1 had a total of 1.852 million mobile connections, down from 2.109 million a year earlier, and whilst the contract user base rose a net 19,000 y-o-y, the cellco said a change in regulations contributed to a fall in pre-pay users. In April 2014 the watchdog, the Infocomm Development Authority of Singapore (IDA), reduced the number of pre-paid SIM cards that could be held per subscriber. More positively, M1 had a total of 103,000 fibre-optic broadband customers at the year end, up 18,000 in a year.

Commenting on the results, M1 chief executive officer Karen Kooi Lee Wah, said: ‘Faster network and devices will drive data usage in 2015. In December 2014 we launched Singapore’s first next generation 4G network, enabling download speeds of up to 300Mbps … We are well placed to capture growth in the corporate segment through our enhanced offerings, such as new state-of-the-art data centre and suite of cloud solutions.’

Singapore, M1 Limited (M1)