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M1 Ltd’s Latest Results: Net Profit Fell 21.4%

M1 Ltd (SGX: B2F) released its 2018 fourth-quarter earnings update at the start of the week. M1 is the smallest player within Singapore’s telecommunications industry, sitting behind Starhub Ltd (SGX: CC3) and leader Singapore Telecommunications Limited (SGX: Z74).

Here are 10 things about the presentation we think are important to note.

  1. Revenue for the quarter was up 3.7% year over year to S$312.8 million. Yet, service revenue was down 1.8% year over year to S$187.8 million.
  2. Quarterly EBITDA (earnings before interest tax depreciation and amortisation) declined 10.3% year over year to S$68.0 million.
  3. EBITDA margin on service revenue for the quarter was down from 39.6% last year to 36.2%.
  4. Net profit was down 21.4% year over year to S$25.2 million.
  5. Year to date, free cash flow came in higher at S$140 million, up from S$107 million in the same period last year.
  6. As of 31 December 2018, net debt stood at S$8 million, and gearing stood at 0.7 times. A year ago, net debt and gearing were S$403.5 million and 0.8 times, respectively.
  7. For the quarter, revenue for the Fixed and Handset Sales segments were up by 8.6% and 13.3%, respectively, as compared to the same period last year. On the other hand, revenue for International Call and Mobile Telecommunication were down by 18.4% and 2.7%, respectively, as compared to last year.
  8. Total mobile customers were down 4.1% year over year to 1.956 million, while Fibre customers grew 7% year over year to 209,000.
  9. Overall mobile market share stood at 23.5%, down from 24.1% last year. The decline was mainly driven by lower prepaid customers and offset slightly by higher postpaid customers.
  10. M1 recommended a final dividend of S$0.06 per share. Including the interim dividend paid, the full-year divided totalled 11.2 cents per share.

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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.