M1 could focus on cybersecurity amidst looming competition: analyst

The telco firm has mentioned its plans to grab opportunities offered by the Smart Nation initiatives.

M1 could eye on cybersecurity as it plans to leverage on ICT and digital capabilities, OCBC Investment Research (OIR) said.

The telco firm has mentioned its plans to grab opportunities offered by the Smart Nation initiatives.

“Also, we believe that M1 remains open to work with other mobile virtual network operators (MVNOs) that are able to offer unique propositions, especially in tapping niche segments that would otherwise be unserved by the group,” OIR noted.

M1’s Q2 profit grew 1.5% YoY to $36.2m in Q2 2018 from to $36.5m amidst a 1.7% YoY revenue increase to $253.2m. However, prepaid users decreased 19.5% to 625,000 from 777,000.

Also read: M1's profit inched up 1.5% to $36.2m in Q2

“Whilst the group is looking to step up its activities in the prepaid market to arrest the decline, we understand that it will be challenging, especially with the incentives being offered by competitors to both the trade and customers,” OIR commented.

The bank believes that M1 recognizes the potential impact arising from TPG Telecom’s impending entry into Singapore by H2.