Depreciation and interest costs pull down M1's Q1 net 14.6% to S$36.3m

HIGHER depreciation and interest expenses pulled down telco M1's first quarter net profit 14.6 per cent to S$36.3 million from S$42.5 million one year ago. This came on the back of a 1.2 per cent rise in revenue to S$260.7 million from S$257.6 million during the period which ended on March 31, 2017.

M1's earnings per share (EPS) was 3.9 Singapore cents, down 14.2 per cent from 4.5 Singapore cents one year ago. Ebitda (earnings before interest, tax, depreciation and amortisation) for the period was down 5.1 per cent to S$79 million from S$83.3 million one year ago. Ebitda margin stood at 39.2 per cent of service revenue down from 40.9 per cent one year ago.

The telco's service revenue, minus handset sales was S$202 million for the quarter, down marginally from S$203 million one year ago. However, including handset sales, which stood at S$59 million during the quarter, up 9.2 per cent compared to S$54 million one year ago, overall service revenue was up 1.2 per cent to S$261 million from S$258 million one year ago.

M1's mobile customer base increased 27,000 quarter on quarter to 2.05 million and mobile data revenue accounted for 55.1 per cent of service revenue. Fibre customer base grew 8,000 during the quarter to 168,000. Fixed services revenue, at S$30 million during the quarter was 22.8 per cent higher than S$25 million one year ago. This allowed for fixed service revenue to increase to 15 per cent of service revenue.