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M1 books 23.4% fall in third-quarter profits as revenue slumps to SGD249m

20 Oct 2016

Singaporean fixed and mobile operator M1 has published its third quarter results for the three months ending 30 September 2016, noting that revenue fell 10.3% year-on-year to SGD249 million (USD179.6 million), impacted by a 28% dip in handset sales. Service revenue of SGD197 million was 4.4% lower on an annualised basis and net profit slumped 23.4% to SGD41 million. 3Q16 EBITDA stood at SGD75 million, down 9.2% quarter-on-quarter and 13.9% below the figure of SGD87 million booked in 3Q15; capital expenditure in the period was SGD26.7 million (+1.2% y-o-y).

M1, the smallest mobile operator behind Singtel and StarHub, reported a 6.6% y-o-y decline in mobile service revenue in the period under review, closing out September with a total of 1.994 million mobile subscribers – compared to 1.891 million a year before. Of the total, 1.232 million are post-paid (a net increase of 10,000 q-o-q), while the pre-paid base edged up 4,000, it said. Average revenue per user (ARPU) dropped sharply, however, as post-paid ARPU declined 7.7% y-o-y to SGD56.5 per month and PAYG ARPU plummeted 17.8% to SGD12. More encouragingly, M1 managed to keep a rein on post-paid churn which was reported at 0.9% for July-September, down from 1.0% in the prior year.

Elsewhere, the carrier’s fixed services business segment saw a 22.7% y-o-y improvement in revenue, it said, helped along by a net increase of 32,000 fibre-broadband users to 152,000. ARPU, though, fell by 3.4% on an annualised basis to SGD45.7 a month. International call services revenue continued to tumble, falling 11% in the third quarter to SGD15 million.

Singapore, M1

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