Telco M1's service revenue grew 3.9 per cent to $191.7 million in the first quarter of this year.

The growth was driven by growth in customer base and higher contribution from fixed services, it said in a media statement.

The statement also said that the net profit after tax decreased 5.3 per cent to $40.3m mainly due to higher acquisition costs.

Net profit after tax increased 7.1 per cent compared to the preceding quarter.

Revenue from non-voice services rose by 2.2 percentage points to 36.9 per cent of service revenue, driven by continued growth in smartphone customer base, which now accounts for 69 per cent of total postpaid customer base.

Chief executive Karen Kooi said the growth for mobile data and fixed services revenue is likely to continue for the rest of the year.

"Based on the current economic outlook and barring any unforeseen circumstances, we are maintaining our guidance of stable performance for 2012", she said.

M1's fixed customer base has grown to 50,000, with its total mobile customer base now standing at 2.014 million.

paullim@sph.com.sg