M1 net profit down 23.4% in Q3

Telco M1 has signed up more customers this year but lower handset sales dented its third-quarter numbers, it reported yesterday.

Net profit for the three months to Sept 30 fell 23.4 per cent from the same period a year ago to $34.4 million, while operating revenue slid 10.3 per cent to $249.1 million.

The fall in turnover was due largely to a dip in the number of handsets sold.

Total service revenue - which comprises turnover from mobile telecommunications, fixed and international call service - dipped 3.6 per cent to $197.1 million.

Still, M1 grew its customer base by 6.7 per cent over the year, with 2.15 million customers at the end of last month.

Its market share was 23.7 per cent at the end of July.

M1 noted that the global telecommunication sector continues to face challenges by disruptive technologies, resulting in a fall in traditional revenues.

"While customers consume more data with over-the-top applications, growth in data revenue is likely to be moderated by competitively priced data offerings."

But the corporate market remains a growth segment, it added. "We continue to build on our suite of cloud-based services bundled with data analytics and connectivity to further penetrate the corporate and government sectors."

M1 said it also continues to invest in networks to strengthen its core business.

"Together with data analytics, Internet of Things capabilities and a new portfolio of digital solutions, M1 is well placed to capture new opportunities in the digital space, beyond connectivity."

Based on the current outlook and barring unforeseen circumstances, M1 said its full-year net profit after tax will likely show a decline of around the same level as that seen so far this year.

Net profit for the first nine months was down 12.6 per cent to $117.9 million over the same period a year ago.

Earnings per share for the third quarter fell 22.8 per cent to 3.7 cents from 4.8 cents a year ago.

Net asset value per share fell to 39.9 cents from 44.1 cents at the end of last December.

This article was first published on Oct 19, 2016.
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