M1 profit up 4.5% to $157.1mn

The telco sees profit to rise further as it enhances its fixed service offerings for both the residential and corporate segments to drive take-up of fibre services.

M1 Limited (M1) on Wednesday announced the unaudited group financial results for the year ended 31 December 2010. Net profit after tax increased 4.5% to S$157.1 million.

Operating revenue at S$979.2 million rose 25.3% year on year due to higher service revenue and handset sales. Service revenue grew 4.6% to S$732.9 million, benefiting from growth in mobile customer base, as well as higher contribution from fixed services. EBITDA at S$313.3 million was up 1.2%.

Revenue from non-voice services rose by 5.9% points to make up 31.9% of service revenue, driven by continual growth in mobile broadband and smartphone customer base.

The postpaid customer base grew by 89,000 in 2010 compared to an increase of 30,000 in the preceding year. In the fourth quarter, total customer base grew by 19,000 customers to 1.911 million customers as at 31 December 2010. Monthly postpaid churn in 2010 improved to 1.4%, compared to 1.6% in the previous year.

“For the current year, we will enhance our fixed service offerings for both the residential and corporate segments to drive take-up of fibre services. In addition, we will continue to invest in networks, including the roll out of our LTE network. This will meet the growth in mobile data driven by the increased take-up of smartphones and tablets.”

“Based on the current outlook and barring any unforeseen circumstances, we are likely to see improved net profit after tax for the year 2011,” said Ms Karen Kooi, Chief Executive Officer of M1.

The Board of Directors has recommended a final tax-exempt dividend of 7.7 cents per share, and in addition, a special dividend of 3.5 cents per share, taking full year payout to 100% of net profit after tax for 2010.

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