Singapore's M1 posts in line profit, declares dividend

Singapore Telcos will no longer provide 2G mobile services from April 2017
SIM cards lie on a table in this photo illustration Reuters

Singapore-based telecom services provider M1 on Tuesday reported a 2.5 percent drop in fourth-quarter profit, as guided earlier.

M1 said net profit after tax fell to S$31 million for its fourth quarter ended December 31 from S$31.8 million last year, the company said in a regulatory filing.

For the year, net profit after tax declined 11.5 percent year-on-year to S$132.5 million.

The Singapore-listed firm warned in October that it expected full-year profit to fall citing higher depreciation and interest expenses.

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EBITDA increased 3.3 percent year-on-year to S$74.4 million in the quarter.

For the said period, the group recorded a 2.1 percent decline in revenue to S$307.2 million.

Service revenue increased 7 percent year-on-year to S$215.1 million. This was mainly driven by higher mobile telecoms and fixed services revenues.

During the quarter, M1 added 20,000 postpaid customers and 11,000 prepaid customers, to bring the total mobile customer base to about 2 million.

M1's fiber customer base also increased 7,000 during the quarter to 189,000.

Churn rate was 1.2 percent for the fourth quarter.

The board recommended a final dividend of 6.2 cents per share, taking the full-year payout to a total of 11.4 cents per share.

Shares in the company ended up 0.5 percent at S$1.87 on the Singapore Exchange. The stock has lost 6 percent in a year.

This article was first published on January 23, 2018