Singapore Operator Reports Slip in 9-Month Profits

Singapore mobile operator, MobileOne (M1) has reported that its pre-tax profit  for the nine months ended 30 Sept 2008 declined 6.9% to S$139.9 million (US$94.5 million). Service revenue increased 3.6% year on year to S$559.7 million, driven by growth in the mobile and international sectors, while EBITDA margin on service revenue stood at 42.5%.

Postpaid revenue increased by 0.3% to S$401.8 million (US$378 million) while prepaid revenue rose 20.6% to S$53.9 million. International call revenue went up 9.9% to S$104.0 million as international call minutes increased 73% to 368.4 million.

The customer base grew by 10,000 during the quarter to 1.621 million customers as at 30 September 2008.

Neil Montefiore, M1Ã's Chief Executive Officer, said: "The increased level of competitive activities prior to the launch of full mobile number portability on 13 June 2008 continued into the third quarter. The combination of an increased take-up of new competitive tariff plans and continuing high acquisition and retention costs caused a decline in profitability in the third quarter. Based on the current outlook and economic climate, and excluding prior yearÃ's tax adjustment, the Company expects a single-digit decline in net profit after tax for 2008.

"For the full year 2008, M1 aims to pay an annual cash dividend of at least 80% of net profit after tax."

Posted to the site on 17th October 2008