M1's net profit, revenue up as number of customers edged up in 3Q

M1's net profit rose 0.8 per cent to $44.9 million in the June to September period from the same period last year, the company said on Monday, Oct 19, 2015.
M1's net profit rose 0.8 per cent to $44.9 million in the June to September period from the same period last year, the company said on Monday, Oct 19, 2015. PHOTO: M1

SINGAPORE - It was a steady quarter for telecommunications firm M1, as the firm's profit rose marginally on the back of higher revenues.

Net profit for M1 rose 0.8 per cent to $44.9 million in the June to September period, up 0.8 per cent from the $44.5 million earned in the same period last year, the firm said on Monday evening in its quarterly financial report.

Revenues were also up 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 jumping 42.4 per cent to $90.8 million.

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

The number of postpaid customers also 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.

Earnings per share was 4.8 cents for the quarter, unchanged from a year ago, while net asset value stood at 39.4 cents as at 30 September.

"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."

The company did not declare a dividend this quarter, after declaring a 7 cents a share dividend in the previous quarter.

M1 shares rose 2 cents to close at $2.90 on Monday.