Singapore's M1 Sees Revenues Rise on Higher Mobile Data Usage
Published on: 21st Jan 2014
By: Ian Mansfield
Singapore's MobileOne (M1) says that its service revenues for last year grew 6.3% year on year to S$819.8 million (USD642 million) driven by growth in postpaid and fixed customer base as well as higher revenue from mobile data.
However, operating revenue declined 6.4% to S$1,008 million due to lower handset sales.
Net profit after tax increased 9.4% year-on-year to S$160.2 million (US$125.5 million). Free cash flow for the full year was S$176.0 million.
The company says that mobile data usage continued to grow and revenue from non-voice services for FY2013 rose 4 percentage points year-on-year to 41.6% of service revenue.
As at end 2013, mobile customer base was 2.11 million and postpaid customers grew by 35,000. M1 added 33,000 fibre customers during the year and this brings the customer base to 85,000 as at end 2013.
"Growth in 2014 will be driven by mobile data and fixed services. Mobile data will be driven by customers upgrading their smartphone plans and increasing adoption of smartphones by prepaid customers. Fixed services will benefit from the increasing fibre adoption in both the consumer and enterprise segments. We are well-placed to capitalise on these opportunities," said Ms Karen Kooi, Chief Executive Officer of M1.
On network investment, the nationwide rollout of 3G radio network on the 900MHz spectrum will be completed by end of the first quarter. M1 will also be upgrading its 4G network to LTE-A by end of the year.
Based on current economic outlook and barring unforeseen circumstances, M1 estimates moderate growth in net profit after tax for the year 2014.