M1 revenue up 15.5% in Q2

M1 added 13,000 customers, bringing its total mobile base to 1.88 million, and 6,000 fibre customers, bringing its base to 114,000.
M1 added 13,000 customers, bringing its total mobile base to 1.88 million, and 6,000 fibre customers, bringing its base to 114,000.PHOTO: M1

Handset sales more than doubled to $163.1 million

Telco M1 yesterday said its second-quarter net profit edged up 1 per cent to $44.3 million.

Revenue for the three months to June 30 rose by 15.5 per cent to $276.8 million.

For the half year, net profit grew by 3.8 per cent to $90 million, on the back of a 19.1 per cent jump in revenue to $571.7 million.

The impetus in the revenue jump came from handset sales, which more than doubled to $163.1 million from $66.9 million. Mobile data rose 9.5 percentage points to 43.1 per cent of service revenue, which eased 1 per cent to $408.6 million.

In the second quarter, M1 added 13,000 customers, bringing the total mobile base to 1.88 million as at June 30. Monthly postpaid churn remained stable quarter-on-quarter at 1 per cent.

M1 also added 6,000 fibre customers during the quarter to bring its base to 114,000.

  • AT A GLANCE

  • NET PROFIT:
    $44.3 million (+1%)

    REVENUE:
    $276.8 million (+15.5%)

    INTERIM DIVIDEND PER SHARE:
    7 cents (unchanged)

Fixed services revenue grew by 18 per cent to $39.5 million for the first half of 2015 and now accounts for 9.7 per cent of service revenue. The growth was driven by higher contribution from the corporate segment. Staff costs increased 7.3 per cent to $29.8 million for the quarter and 6.2 per cent to $58.8 million for the first six months, due to annual increment and higher headcount. Against the first quarter, staff costs were 2.7 per cent higher. Quarterly earnings per share was unchanged at 4.7 cents, while net asset value per share slipped to 41.5 cents, compared to 42.4 cents as at Dec 31.

"With our appointment as key sub-contractor for NetLink Trust and an expanded range of cloud-based solutions, we are better placed to service our corporate customers," said M1 chief executive officer Karen Kooi, adding that the group will continue to build on the momentum and grow its share in this segment.

Based on the current economic outlook, M1 estimates moderate growth in net profit for the full year.

An unchanged interim dividend of seven cents a share was declared.

A version of this article appeared in the print edition of The Straits Times on July 21, 2015, with the headline 'M1 revenue up 15.5% in Q2'. Print Edition | Subscribe