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M1's Q2 profit falls 20.8% to S$32.5m

DBS Vickers Securities on Wednesday downgraded M1 after the telco posted disappointing second quarter results and its three major shareholders, with a combined stake of 61 per cent, called off a strategic review of their stakes.

HIGHER depreciation and interest expense, among other factors, contributed to a 20.8 per cent drop in telco M1's net profit for the second quarter to S$32.5 million, from S$41 million one year ago.

Revenue for the period ended June 30, 2017, was up 4.7 per cent to S$251.6 million, from S$240.4 million in the same period last year.

M1 announced an interim dividend of 5.2 Singapore cents per share, down from the seven Singapore cent interim dividend declared last year.

The company's earnings per share (EPS) for Q2 were down 20.8 per cent to 3.5 Singapore cents, from 4.4 Singapore cents last year.

For the half-year period ended June 30, M1's net profit was down 17.6 per cent to S$68.6 million, from S$83.5 million one year ago. Revenue was up 2.9 per cent to S$512.3 million, from S$498 million. EPS was down 17.4 per cent to 7.4 Singapore cents from nine Singapore cents.

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