M1's profit falls 17.6% year-on-year for first half of 2017

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Fixed services revenue, however, increased 22.3 per cent year-on-year to S$61.2 million.

(Photo: M1)

SINGAPORE: Local telco M1 has reported a 17.6 per cent drop in its net profit after tax to S$68.8 million in the first half of 2017, compared to the same period a year ago.

This was partly due to higher depreciation and interest expense, said M1 in a media release on Tuesday (Jul 18). 

Total revenue for the six-month period ended June 30, 2017, however, went up by 2.9 per cent to S$512.3 million.

This was boosted by fixed services, which continued to post strong growth across both corporate and residential segments. Revenue in this area increased by 22.3 per cent year-on-year to S$61.2 million.

In the same period, M1’s revenue from mobile telecommunications and international call services fell 2.9 per cent and 9.6 per cent respectively.

“Based on current outlook and barring unforeseen circumstances, M1 estimates a decline in net profit after tax for the year 2017,” it said.

M1’s board of directors has declared an interim dividend of 5.2 cents per share, according to the media release. 

MORE FIBRE USERS, SMARTPHONE DATA USAGE UP

The telco said that its fibre customer base grew by 8,000 quarter-on-quarter to 176,000 in the second quarter of 2017.

Following the shutdown of Singapore’s 2G network in April, M1 said its customers using 2G data were migrated to its M2M (machine-to-machine) platform. As these customers were not included in the mobile base, the total mobile customer base decreased 2,000 in the second quarter to 2.04 million, and mobile churn was higher at 1.7 per cent, it said. 

Average postpaid smartphone data usage grew to 3.9GB per month in the second quarter of 2017, from 3.3GB per month a year ago. Mobile data contribution increased 1.5 percentage points year-on-year to 55.5 per cent of service revenue in the latest quarter, it added. 

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