M1 Press Release 

Results for the year ended 31 December 2011
Net profit increased 4.5% to S$164.1 million,
well placed to capture growth opportunities in data

SINGAPORE, 16 January 2012 – M1 Limited (M1) today announced the unaudited group financial results for the year ended 31 December 2011. Net profit after tax increased 4.5% to S$164.1 million.

Operating revenue grew 8.8% to S$1,064.9 million, driven by higher service revenue and handset sales. Service revenue grew 2.4% to S$750.5 million, benefiting from growth in mobile customer base, as well as higher contribution from fixed services.

Revenue from non-voice services rose by 3.7 percentage points to make up 35.6% of service revenue, driven by continued growth in smartphone customer base. This customer base now accounts for about 67% of total postpaid customers.

The total mobile customer base grew by 104,000 in 2011 to reach 2.015 million customers as at 31 December 2011. Monthly postpaid churn in 2011 improved to 1.3%, compared to 1.4% in the previous year. As at end of 2011, M1 had 44,000 fixed services customers and out of which, 22,000 were fibre customers.

“The coverage of the Next Generation Nationwide Broadband Network (NGNBN) is expected to be nationwide by mid-year and take-up of fibre services is likely to gain momentum. With our newly launched NGNBN active network and soon to be completed nationwide LTE network, M1 is well placed to capture data growth in both the fixed and mobile segments.”

“Based on the current economic outlook and our state of readiness to address the growth segments, we are likely to maintain stable performance for the year 2012,” said Ms Karen Kooi, Chief Executive Officer of M1.

The Board of Directors has recommended a final tax-exempt dividend of 7.9 cents per share, taking full year payout to 80% of net profit after tax for 2011.