M1 announced 5.2% yoy growth in service revenue to S$193 mil, fixed services grew 27.4%, declare 5.2 cents dividend

Results for half year ended 30 June 2018

  • Service revenue for second quarter grew 5.2% year-on-year to S$193.0 million
  • Fixed services revenue for second quarter grew 27.4% year-on-year to S$36.7 million
  • Interim dividend of 5.2 cents per share

SINGAPORE, 27 July 2018 – M1 Limited (M1) today announced the unaudited group financial results for the six months ended 30 June 2018.

For the second quarter of 2018, service revenue grew 5.2% year-on-year to S$193.0 million. This was mainly driven by higher postpaid and fixed services revenues, which grew 5.7% and 27.4% year-on-year to S$132.6 million and S$36.7 million respectively. EBITDA increased 1.4% year-on-year to S$78.4 million and net profit after tax increased 1.5% year-on-year to S$36.2 million.

Fixed services continued to post strong growth across both corporate and residential segments. Fibre customer base grew 6,000 quarter-on-quarter to 200,000 and fixed revenue accounted for 19.0% of second quarter service revenue, compared to 15.7% a year ago.

During the quarter, M1 added 34,000 postpaid customers, to bring the postpaid customer base to 1.34 million as at 30 June 2018. Monthly postpaid churn remained stable year-on-year at 1.0%. Contribution from mobile data increased to 64.4% of service revenue, up from 55.3% a year ago. Average postpaid smartphone data usage grew to 5.2GB per month in the second quarter of 2018, from 3.9GB per month a year ago.

“M1 is committed to stay at the forefront of technology advancements and has embarked on early multi-vendor 5G trials, including Singapore’s first end-to-end 5G live trial in June 2018. This could provide insightful learning crucial to the successful development of relevant 5G services. With our foundation of dense cell grid and advanced narrowband Internet-of-Things network, we are well positioned to harness exciting new capabilities and support highly reliable and responsive applications on our network,” said Ms Karen Kooi, Chief Executive Officer, M1.

“The Smart Nation initiatives will accelerate the digitalisation and transformation of businesses. By leveraging on our scaled up ICT and digital capabilities, we will be able to capture new opportunities from Smart Nation initiatives and support businesses to leverage digital technologies,” Ms Kooi added.

M1’s Board of Directors has declared an interim dividend of 5.2 cents per share.