M1 posts 20.8 per cent drop in Q2 earnings

Pedestrains using their mobile devices near the M1 logo at the Paragon Mall along Orchard Road on May 7, 2017.
Pedestrains using their mobile devices near the M1 logo at the Paragon Mall along Orchard Road on May 7, 2017.ST PHOTO: KUA CHEE SIONG

SINGAPORE - M1 saw second-quarter net profit drop 20.8 per cent as higher depreciation and interest expense, among other factors, took a toll on earnings.

The telco on Tuesday (July 18) reported a net profit of $32.5 million for the three months ended June 30, down from $41 million in the same period a year earlier.

The slide in the bottomline came even though operating revenue climbed 4.7 per cent to $251.6 million.

Net profit for the half year to June 30 slid 17.6 per cent to $68.8 million, while operating revenue inched up 2.9 per cent to $512.3 million.

Earnings per share for the quarter came in at 3.5 cents, lower than the 4.4 cents previously, while net asset value per share was 44.9 cents as at June 30, slightly higher than the 43.4 cents as at Dec 31 last year.

M1 has proposed an interim dividend of 5.2 cents per share, down from seven cents previously.

The group said it expects to see a decline in net profit after tax for the full year 2017, based on current outlook and barring unforeseen circumstances.

Shares of M1 rose 1.4 per cent or three cents to close at $2.10 on Tuesday, before the results were announced.

tsjwoo@sph.com.sg