M1 has posted earnings of $41 million for 2QFY2016, a 7.5% decrease from the earnings of $44.3 million in 2QFY2015.
For the quarter to June, revenue fell 13.2% to $240.4 million on lower handset sales.
The group’s customer base rose 6.4% y-o-y to 2.1 million and its market share was 23.5% at end April. Churn rate was 0.9% during the quarter.
Telecommunication revenue fell 2.2% to $163 million, largely from lower postpaid revenue which had fallen 1.6% to $145 million. International call revenue fell 11.7% to $15.3 million and handset sales fell 49.9% to $36.4 million.
On the other hand, fixed services rose 26.9% to $25.6 million from a higher fiber customer base.
The group recorded a 14.1% decrease in operating expenses to $191.1 million, due in part to the lower sales of handsets.
M1 says that it continues to invest in new technologies and capabilities to counter the impact of OTT services on its traditional telecommunications revenue, while tapping on the increased data demand for growth. It added that such investments would begin to recognise revenue after it has achieved scale in service adoption in the next few years.
As such, M1 estimates it will record single-digit decline in earnings for FY2016.
The group declared an interim dividend of 7 cents for the half year period.
M1 shares closed lower at $2.78 on Friday.
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For the quarter to June, revenue fell 13.2% to $240.4 million on lower handset sales.
The group’s customer base rose 6.4% y-o-y to 2.1 million and its market share was 23.5% at end April. Churn rate was 0.9% during the quarter.
Telecommunication revenue fell 2.2% to $163 million, largely from lower postpaid revenue which had fallen 1.6% to $145 million. International call revenue fell 11.7% to $15.3 million and handset sales fell 49.9% to $36.4 million.
On the other hand, fixed services rose 26.9% to $25.6 million from a higher fiber customer base.
The group recorded a 14.1% decrease in operating expenses to $191.1 million, due in part to the lower sales of handsets.
M1 says that it continues to invest in new technologies and capabilities to counter the impact of OTT services on its traditional telecommunications revenue, while tapping on the increased data demand for growth. It added that such investments would begin to recognise revenue after it has achieved scale in service adoption in the next few years.
As such, M1 estimates it will record single-digit decline in earnings for FY2016.
The group declared an interim dividend of 7 cents for the half year period.
M1 shares closed lower at $2.78 on Friday.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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