Singaporean telecommunications services provider M1 Limited (M1) has announced its unaudited group financial results for the three months ended 31 March 2016, reporting a 12.6% decrease in operating revenues to SGD257.6 million (USD189.6 million), down from SGD294.8 million in Q1 2015. Service revenue, meanwhile, declined by 14.3% year-on-year to SGD203.4 million, though the operator highlighted a fixed services revenue growth of 26.4% driven by an increase in fibre broadband take-up. M1 said that fixed services now accounted for 12.0% of total service revenue, while mobile data contribution equated to 53.1% of total service revenue. Net profit after tax decreased 6.9% to SGD42.5 million due to higher upfront subscriber acquisition cost, while EBITDA for the quarter remained unchanged y-o-y at around SGD83.3 million. M1 also reported CAPEX growth of 52% y-o-y, from SGD25 million in 1Q15 to USD38 million in the corresponding period of 2016.
In operational terms, M1 added 13,000 post-paid subscribers in the quarter and 1,000 pre-paid customers, bringing the total mobile subscriber base to 1.94 million; monthly post-paid churn improved from 1.1% to 1.0% quarter-on-quarter (q-o-q). The operator’s fibre base rose by 9,000 customers to reach 136,000.
M1’s CEO Ms Karen Kooi commented: ‘M1 will continue to offer new and innovative products and services to build customer loyalty and attract new customers. We are also investing in new technologies that will complement our core business. This may be in early stage companies, for which benefits may only accrue in future years.’ Looking forward, M1 estimates a stable performance in FY 2016, with CAPEX expected to reach approximately SGD140 million (against SGD133.5 million in FY 2015).