M1 profit falls 14.6% in Q1

Singapore’s M1 has reported a 14.6% year-on-year decline in post-tax profit for the March quarter to S$36.3 million ($26 million), attributing the result in part to higher depreciation and interest costs.

Operating revenue grew 1.2% to S$260.7 million, with service revenue remaining flat at S$201.5 million. Fixed line revenue growth reached 22.8% to S$30 million, offsetting declines in both international voice and roaming revenues.

M1 added 8,000 fiber customers during the quarter, taking its total base to 168,000. In the mobile segment, M1 added 24,000 postpaid customers and 3,000 prepaid customers, with its total mobile customer base reaching 2.05 million.

But mobile revenue declined 0.5% to S$158.4 million and international call services fell 9.9% to S$15.5 million.

Monthly MOU also declined 5.6% to 203 for postpaid customers and 9.6% to 191 for prepaid users, while net ARPU fell 2.3% for postpaid users to S$49.50 and 4.5% for prepaid users to S$11.50.

M1 estimates it ended the quarter with an overall mobile market share of 23.8%, with a postpaid share of 24.8% and prepaid share of 22.5%.

While announcing the results, M1 CEO Karen Kooi said the new 700-MHz and 900-MHz frequencies acquired from Singapore’s recent major spectrum auction will allow the operator to “deliver an enhanced network experience cost effectively with optimal use of spectrum.

“With the largest Wireless@SG network and our small cell/WiFi HetNet deployment at targeted locations islandwide, we are delivering a superior data experience in places where it matters most to our customers and laying the foundation for future dense grid 5G architecture,” she said.