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The Positives And Negatives That Investors Should Know About M1 Ltd’s Latest Results

M1 Ltd (SGX: B2F)  is the smallest player within Singapore’s telecommunications industry. Its business has four segments, namely, mobile services, fixed services, international call services, and handset sales.

M1 recently released its 2018 second quarter (Q2 FY18) earnings update. In this article, I will look at the good and the bad from the results announcement.

The positive points

First of all, revenue was up by 1.7 % year-on-year to S$253.2 million. More importantly, service revenue was up 5.2% year-on-year to S$193.0 million.

Secondly, free cash flow for the quarter came in higher at S$42 million, up 222% as compared to the same period last year.

Thirdly, postpaid mobile subscribers number grew 5.6% year-on-year to 1.338 million. Meanwhile, fibre customers was up 13.4% year-on-year to 200,000.

Last but not least, average revenue per user (ARPU) for fibre broadband grew 4.6% year-on-year to S$38.60.

The negative points

Firstly, the international call services and handset sales segments reported year-on-year decline in revenue, down by 27.3% and 8.0% respectively.

Secondly, prepaid mobile subscribers number was down by 19.5% year-on-year to 625,000. This resulted in a decline in market share from 22.9% last year to 20.5%.

Thirdly, net debt grew from S$394.9 million a year ago to S$420.5 million. Similarly, gearing was up from 0.8 times equity to 0.9 times equity.

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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.