M1’s profits up nearly 10% YoY to US$133mil

• Operating revenue up 6.8 on higher handset sales, service revenue up 1.4%
• Expects ‘moderate growth’ in net profit after tax for 2015

M1 Limited said its net profit after tax for its 2014 fiscal year which ended Dec 31 increased 9.7% year-on-year to S$175.8 million (US$133 million).
 
Operating revenue for FY2014 increased 6.8% to S$1.0763 billion on higher handset sales, while service revenue grew 1.4% year-on-year to S$831.1 million, driven by growth in its postpaid and fixed customer base, as well as higher revenue from mobile data.
 
[S$1 = US$0.75]
 
Mobile telecommunications revenue grew 4.2% to S$671.1 million, due to higher postpaid revenue. Mobile data usage continued to grow, with revenue from non-voice services for FY2014 increasing 5.7 percentage points year-on-year to 47.3% of service revenue, the company said in a statement.
 
As at end 2014, total mobile customers base was 1.85 million. Postpaid customer base increased 19,000 year-on-year to 1.15 million, while prepaid customer base was impacted by a regulatory change. During the year, the fibre customer base grew 18,000 to 103,000.
 
“Faster network and devices will drive data usage in 2015,” said its chief executive officer Karen Kooi.
 
“In December 2014, we launched Singapore’s first next-generation 4G (Fourth Generation) network, enabling download speed of up to 300Mbps. We will continue to invest in our networks to improve customer experience.
 
“We are also well-placed to capture growth in the corporate segment through our enhanced offerings, such as our new state-of-the-art data centre and suite of cloud solutions,” she added.
 
Based on current economic outlook and barring unforeseen circumstances, M1 estimates moderate growth in net profit after tax for the year 2015.
 
Its board of directors has recommended a final dividend of 11.9 cents per share, taking its full-year payout to a total of 18.9 cents per share.
 
M1 is listed on the Singapore Exchange (SGX), and its major shareholders are Axiata Investments (Singapore) Ltd, Keppel Telecoms Pte Ltd, and SPH Multimedia Private Limited.
 
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