M1 second-quarter profit inches up to SGD36m despite fall in mobile numbers

30 Jul 2018

Singaporean fixed and mobile operator M1 Limited (M1) has announced the unaudited group financial results for the quarter ended 30 June 2018, noting that service revenue grew 5.2% year-on-year to SGD193.0 million (USD141.8 million), driven by higher post-paid and fixed services revenues, which increased 5.7% and 27.4% to SGD132.6 million and SGD36.7 million, respectively. EBITDA increased by 1.4% y-o-y to SGD78.4 million, with an EBITDA margin of 40.6% (2Q17: 42.1%), and net profits increased 1.5% to SGD36.2 million. 2Q18 mobile service revenue improved 3.8% y-o-y to SGD146.0 million, with mobile contributing 64.4% of total service revenue. At the end of the period under review, M1 reported a total of 1.964 million mobile customers, after losing 152,000 pre-paid users in the past twelve months, down to a total of 625,000. However, the cellco added 71,000 net new post-paid customers during the past year for a total of 1.338 million customers. Meanwhile, revenues derived from fixed services continued to post strong growth across both the corporate and residential segments. M1 said its fibre customer base grew 6,000 quarter-on-quarter and 24,000 y-o-y to 200,000 at end-June 2018, with fixed revenue accounting for 19.0% of second quarter service revenue, compared to 15.7% in the year-ago quarter. Second-quarter fixed and mobile CAPEX was SGD28.0 million, up 2.8% y-o-y.

Commenting on the telco’s latest results, M1 CEO Karen Kooi said: ‘M1 is committed to stay at the forefront of technology advancements and has embarked on early multi-vendor 5G trials, including Singapore’s first end-to-end 5G live trial in June 2018. This could provide insightful learning crucial to the successful development of relevant 5G services. With our foundation of dense cell grid and advanced narrowband Internet of Things [NB-IoT] network, we are well positioned to harness exciting new capabilities and support highly reliable and responsive applications on our network.’ Ms Kooi went on to point out: ‘The Smart Nation initiatives will accelerate the digitalisation and transformation of businesses. By leveraging on our scaled up ICT and digital capabilities, we will be able to capture new opportunities from Smart Nation initiatives and support businesses to leverage digital technologies.’

Singapore, M1