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9 Quick Things Investors Should Know About M1 Ltd’s Latest Earnings

On Monday evening, Singapore’s third largest operational telco, M1 Ltd  (SGX: B2F), released its 2018 first quarter earnings update. Here are nine important things to note:

1. Revenue for the quarter was up 0.5% year-on-year to S$254.1 million. Service revenue was up 3% to S$184.7 million.

2. Yet, EBITDA (earnings before interest, taxes, depreciation, and amortisation) declined by 2.3% from a year ago to S$75.4 million.

3. M1’s EBIT (earnings before interest and taxes) was similarly down by 1% year-on-year to S$45.0 million.

4. Net profit attributable to shareholders for the quarter ended up 0.9% higher at S$34.1 million.

5. Free cash flow came in at S$24.4 million, 39.5% higher than a year ago.

6. As of 31 March 2018, M1’s net debt stood at S$377.3 million, up slightly from S$376.2 million a year ago. But, M1’s gearing (net debt over equity) declined from 0.8 to 0.7.

7. For the reporting quarter, revenue from the Mobile Telecommunications Services and Fixed Services segments were up by 2.5% and 13.9%, respectively, compared to 2017’s first quarter. On the other hand, revenue from the International Call Services and Handset Sales segments were down by 14.4% and 5.7%, respectively.

8. M1’s total mobile customers fell by 2.6% year-on-year to 1.992 million, but its fibre customer count was up 15.3% to 194,000.

9. In its earnings update, M1 shared the following comments on its outlook:

“We operate in a fast moving digital era and face increasing competition from both new entrants and OTT service providers. While traditional telecommunication revenue remains under threat, the digital economy also presents new opportunities.

We are progressively scaling up our Info-Communication Technology (ICT) and digital capabilities. We are at the forefront of Internet-of-Things (IoT) solutions and are well placed to capture the growth in the Corporate and Government segment that is driven by digital transformation and Smart Nation initiatives.

M1 is a premium service provider competing on quality service and customer experience. We will continue to strengthen our telco core and enhance our offerings and value propositions to address the needs of our customers.”

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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 Lawrence Nga doesn’t own shares in any companies mentioned.