20 Key Figures Investors Should Know About M1 Ltd

M1 Ltd  (SGX: B2F) is one of the many companies that released their annual reports over the past few months.

The annual report is a great place to learn more about a company. In the case of M1, its latest 2015 Annual Report had a chockful of interesting numbers. Here are 20 figures that may be worth noting:

  1. M1 has over 2 million customers, including 1.93 million mobile customers and 128,000 fibre customers in 2015. M1 believes that it has a 23.4% mobile market share in 2015 based on reports by the IDA (Infocomm Development Authority). Singapore’s mobile penetration rate is also estimated to be almost 150%. Elsewhere, the residential broadband penetration rate was 102.8% at end-December 2015. The total fiber market, including residential and corporate subscriptions, increased to over 932,000 in 2015. Singapore’s home fiber penetration was tagged at over 70%.
  2. M1’s operating revenue was $1.16 billion in 2015. From this amount, $822 million came from service revenue while the rest was from handset sales.
  3. M1’s service revenue can be divided into three major buckets, namely, mobile telecommunications, fixed services, and international call services. The mobile telecommunications segment is by far the most important, accounting for over 81% of total service revenue in 2015. Fixed services came in at 10.4% while international call services weighed in at 8.4%.
  4. Postpaid mobile customers was 62% of total mobile customers for M1 in 2015. The rest came from prepaid mobile customers. When it comes to revenue, postpaid mobile customers accounted for 88.5% of the mobile telecommunications revenue.
  5. Mobile data might be the future. It may be astonishing for investors to note that mobile data made up over 46% of M1’s total service revenue in 2015. This is up from 35.6% in the previous year.
  6. M1’s EBITDA (earnings before interest, taxes, depreciation and amortization) margin improved from 40.4% in 2014 to 41.6% in 2015. But, net cash flow from operating activities fell from $273 million in 2014 to $239 million in 2015. The lower operating cash flow could have led to M1’s lower dividend in 2015 – the telco’s dividend for 2014 and 2015 was 18.9 cents per share and 15.3 cents per share, respectively.
  7. Elsewhere, M1’s net debt increased from $279.2 million at the end of 2014 to $343.8 million at the end of 2015. Net debt to EBITDA also increased from 0.8 in 2014 to 1.0 in 2015.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chin Hui Leong doesn't own shares in any company mentioned.