M1's profit inches up 0.9% in first quarter

M1's earnings were given a lift because of higher turnover from mobile and fixed services. The telco's revenue also rose, due to increased fixed services and mobile telecoms.
M1's earnings were given a lift because of higher turnover from mobile and fixed services. The telco's revenue also rose, due to increased fixed services and mobile telecoms.ST FILE PHOTO

Higher turnover from mobile and fixed services helped nudge net profits up a notch at telco M1 in the first quarter.

Earnings came in at $34.1 million for the three months to March 31 - just 0.9 per cent higher from a year earlier.

Revenue rose 0.5 per cent to $254.1 million, driven mainly by increased fixed services and mobile telecoms.

Fixed-services revenue advanced 13.9 per cent year on year to $31.9 million, accounting for 17.3 per cent of service turnover.

M1 said the growth was driven by increased sign-ups in the residential and corporate segments. The number of fibre customers was up 5,000 to 194,000 as at the end of the first quarter.

Notably, the corporate and government segment contributed 37 per cent of service revenue and reported 19 per cent year-on-year growth in the quarter, said M1.

  • AT A GLANCE

  • Revenue

    $254.1 million (+0.5%)

  • Net profit

    $34.1 million (+0.9%)

Mobile telecoms services turnover increased 2.6 per cent to $140.9 million. Contributions from mobile data rose to 61.3 per cent of service revenue, up from 54 per cent a year earlier.

The average post-paid smartphone data usage was 4.5GB a month in the first quarter, up from 3.7GB in the same period a year ago.

The telco added 12,000 post-paid customers in the three months, bringing its post-paid customer base to 1.3 million as at March 31.

Chief executive Karen Kooi said: "With our scaled-up (information and communication technology) and digital capabilities, we are well placed to capture the growth opportunities in the corporate and government segment, driven by corporate digital transformation and Smart Nation initiatives."

Earnings per share was 3.8 cents, up from 3.7 cents a year earlier, while net asset value per share was 57.3 cents compared with 53.4 cents as at Dec 31.

M1 shares closed flat at $1.79 yesterday.

A version of this article appeared in the print edition of The Straits Times on April 17, 2018, with the headline 'M1's profit inches up 0.9% in first quarter'. Print Edition | Subscribe