Results for first quarter ended 31 March 2016
Fixed services revenue increased 26.4% year-on-year
Mobile data contribution made up 53.1% of service revenue
SINGAPORE, 13 April 2016 – M1 Limited (M1) today announced the unaudited group financial results for the three months ended 31 March 2016.
Service revenue remained stable year-on-year at S$203.4 million. Net profit after tax decreased 6.9% year-on-year to S$42.5 million due to higher upfront customer acquisition cost. Free cashflow increased 90.8% year-on-year to S$64.1 million.
Fixed services revenue grew 26.4% to S$24.5 million and now accounts for 12.0% of service revenue. The increase was driven by growth of 9,000 residential and corporate fibre customers in the quarter, bringing its base to 136,000.
During the quarter, M1 also added 13,000 postpaid customers and 1,000 prepaid customers, to bring the total mobile customer base to 1.94 million as at 31 March 2016. Monthly postpaid churn improved to 1.0%, compared to 1.1% in the preceding quarter.
Average postpaid smartphone data usage was 3.3GB per month in first quarter of 2016, from 3.2GB per month a year ago. Average prepaid data usage grew to 1.3GB per month, up from 0.8GB per month a year ago. Mobile data contribution increased 11.8 percentage points year-on-year to 53.1% of service revenue.
In the latest quarter, M1 enhanced its product propositions through improved SIM-only plans, upsized data bundles and an expanded coverage of Data Passport destinations. M1 also expedited its investment in fibre network to commercial buildings and major data centres, and expanded its suite of cloud-based offerings and smart vertical solutions, to further strengthen its capabilities to capture growth opportunities in the Corporate and Government segments.
“M1 will continue to offer new and innovative products and services to build customer loyalty and attract new customers. We are also investing in new technologies that will complement our core business. This may be in early stage companies, for which benefits may only accrue in future years,” said Ms Karen Kooi, Chief Executive Officer, M1.
Based on current economic outlook and barring unforeseen circumstances, M1 estimates stable performance for the year 2016.