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Tuesday, October 15th, 2019

Singapore's M1 telco earnings fall nearly 21%

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by July 19, 2017 General
Pedestrains using their mobile devices near the M1 logo at the Paragon Mall along Orchard Road on May 7, 2017. Straits Times PHOTO: KUA CHEE SIONG

Pedestrains using their mobile devices near the M1 logo at the Paragon Mall along Orchard Road on May 7, 2017. Straits Times PHOTO: KUA CHEE SIONG

SINGAPORE: M1 saw second-quarter net profit drop 20.8 per cent as higher depreciation and interest expense, among other factors, took a toll on earnings.

The telco on Tuesday (July 18) reported a net profit of S$32.5 million for the three months ended June 30, down from S$41 million in the same period a year earlier.

The slide in the bottomline came even though operating revenue climbed 4.7 per cent to S$251.6 million.

Net profit for the half year to June 30 slid 17.6 per cent to S$68.8 million, while operating revenue inched up 2.9 per cent to S$512.3 million.

Earnings per share for the quarter came in at 3.5 cents, lower than the 4.4 cents previously, while net asset value per share was 44.9 cents as at June 30, slightly higher than the 43.4 cents as at Dec 31 last year.

M1 has proposed an interim dividend of 5.2 cents per share, down from seven cents previously.

The group said it expects to see a decline in net profit after tax for the full year 2017, based on current outlook and barring unforeseen circumstances.

Shares of M1 rose 1.4 per cent or three cents to close at $2.10 on Tuesday, before the results were announced. – Singapore Straits Times

Earlier on Tuesday Axiata announced that M1’s three biggest shareholders – including Axiata Group Bhd – are not going ahead with the strategic review to dispose of their collective stakes.

Axiata said on Tuesday the majority shareholders – Keppel Telecommunications & Transportation Ltd and Singapore Press Holdings Ltd (SPH) and itself – had taken into consideration the proposals from interested parties.

“… despite a favourable level of interest, (they) have not met the minimum criteria and parameters as determined by the majority shareholders,” it said.

Axiata is M1’s largest shareholder with a 28.5% stake and combined with Keppel Telco and SPH, they hold a combined stake of just over 61% in M1

“For the avoidance of doubt, no arrangement or agreement with any third party has been reached in relation to each majority shareholders’ respective shareholdings in M1,” it said. 

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