It’s earnings season again. Given many companies reported their results in the past few weeks, I thought it may be useful to summarise the results of some of these companies in three different buckets – positive, negative, mixed. This will give readers a quick overview of the performances of these companies.
With that, I will focus on two of those companies that delivered growth in their latest results.
M1 Ltd (SGX: B2F) is the first company that I will look at in this article.
As a quick introduction, M1 is the smallest player within Singapore’s telecommunications industry. Its business can be broken down into four segments, namely, Mobile services, Fixed services, International Call services, and Handset sales.
In its second quarter result for 2018 (Q2 FY18), M1 reported that sales revenue was up 1.7 % year-on-year to S$253.2 million. Service revenue was up 5.2% year-on-year to S$193.0 million. The growth in sales revenue was mainly driven by stronger performance in the Mobile Services and Fixed Services segments, offset by weaker performance of International Call Services and Handset Sales. Similarly, EBITDA (earnings before interest tax depreciation and amortisation) grew 1.4% year-on-year to S$78.4 million while net profit improved by 1.5% year-on-year to S$36.2 million.
Looking ahead, Karen Kooi, Chief Executive Officer of M1, commented:
“M1 is committed to stay at the forefront of technology advancements and has embarked on early multi-vendor 5G trials, including Singapore’s first end-to-end 5G live trial in June 2018. This could provide insightful learning crucial to the successful development of relevant 5G services. With our foundation of dense cell grid and advanced narrow band Internet-of-Things network, we are well positioned to harness exciting new capabilities and support highly reliable and responsive applications on our network.
The Smart Nation initiatives will accelerate the digitalisation and transformation of businesses. By leveraging on our scaled up ICT and digital capabilities, we will be able to capture new opportunities from Smart Nation initiatives and support businesses to leverage digital technologies.”
iFAST Corporation Ltd (SGX: AIY) is another company that announced positive results recently. The company is an Internet-based investment products distribution platform that has a presence in Singapore, Hong Kong, Malaysia, China and India. It has two main business divisions – one that caters to consumers (B2C) and the other that caters to businesses (B2B).
Financially, quarterly net revenue was up by 25.2% year-on-year to S$12.0 million while net profit attributable to shareholders grew 40.4% year-on-year to S$2.2 million. Net revenue for Singapore, Hong Kong, Malaysia and China was up by 19.8%, 40.3%, 35.4% and 140.5%, respectively, on a year-on-year basis.
Looking at the balance sheet, total cash and cash equivalents and other investments stood at S$49.0 million, with no debt, as at 30 June 2018.
Overall, the company reported a strong quarter due to growth of iFAST’s Asset Under Administration (AUA) during the period. Its AUA increased 22.2% year-on-year to hit a record high of S$8.33 billion, as of 30 June 2018. Moreover, final dividend per share grew by 10.3% from 0.68 cents last year to 0.75 cents this quarter. Recently, iFAST applied to Hong Kong Monetary Authority (HKMA) for a Virtual Banking licence in Hong Kong. It believes that such a licence can enhance the capability of its wealth management platform.
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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. Motley Fool has a recommendation for iFAST Corporation Ltd.