M1 holds steady in Q3, with slight rise in profits

M1 attracted more customers to its mobile and broadband segments. But despite this, its market share for mobile services fell slightly when compared with last year's performance.
M1 attracted more customers to its mobile and broadband segments. But despite this, its market share for mobile services fell slightly when compared with last year's performance.PHOTO: M1

It was another steady quarter for telecommunications company M1, with the firm's profit rising slightly as it added more customers to its key market segments of mobile and broadband.

Net profit rose 0.8 per cent to $44.9 million in the June to September period, the firm said yesterday.

Revenue jumped 11 per cent over the year to $277.6 million in the third quarter.

But costs also rose - 14.2 per cent to $223 million, with handset costs jum-ping 42.4 per cent to $90.8 million.

The company said that it added new customers to its pool in two key segments - post-paid mobile and fibre broadband services.

  • AT A GLANCE

  • REVENUE:

    $277.6 million (+11%)

    NET PROFIT:

    $44.9 million (+0.8%)

    DIVIDEND:

    None declared

The number of post-paid customers rose marginally, by 3 per cent to 1.18 million.

Some 6,500 customers signed up for its fibre broadband services in the third quarter, adding to the current pool of 98,000 customers.

But despite the rise in numbers of customers, its market share for mobile services actually fell to 23 per cent, down from the 23.3 per cent last year.

Consumption of mobile data - arising from data-intensive apps - continued to rise.

On average, post-paid smartphone data usage increased to 3.3 gigabytes (GB) a month from 2.9GB a month a year ago.

M1's cheaper packages have 3GB and 4GB data bundled into their service plans, which cost $42 and $62 a month respectively,

Consumers who use more than their allotted cap have to pay $10.70 per GB of extra data used, up to a cap of $188.32 a month.

"We will continue to innovate and invest to further enhance our value propositions and customer experience," said Ms Karen Kooi, M1's chief executive officer.

M1 added that "based on current economic outlook and barring unforeseen circumstances, we estimate low single-digit growth in net profit after tax for the year 2015".

For the nine months ended Sept 30, revenues for the firm was at $849.3 million - about 16.3 per cent higher compared with a year ago.

Similarly, net profit increased 2.8 per cent to $134.9 million, for the nine months ended Sept 30.

Earnings per share was 4.8 cents for the quarter, unchanged from a year earlier, while net asset value stood at 39.4 cents as at Sept 30, down from 42.4 cents as at Dec 31, last year.

M1 shares rose two cents to close at $2.90 yesterday.

A version of this article appeared in the print edition of The Straits Times on October 20, 2015, with the headline 'M1 holds steady in Q3, with slight rise in profits'. Print Edition | Subscribe