M1 net profit climbed 9.4% to S$160.2m in FY2013

"Moderate" growth expected in FY2014.

M1 Limited (M1) announced the unaudited group financial results for the year ended 31 December 2013.

Service revenue for FY2013 grew 6.3% year-on-year to S$819.8 million, driven by growth in postpaid and fixed customer base, as well as higher revenue from mobile data, the telco announced in a press release accompany its results.

Operating revenue declined 6.4% to S$1,007.9 million due to lower handset sales. Net profit after tax increased 9.4% year-on-year to S$160.2 million. Free cash flow for the full year was S$176.0 million.

Mobile data usage continued to grow and revenue from non-voice services for FY2013 rose 4.0 percentage points year-on-year to 41.6% of service revenue. As at end 2013, mobile customer base was 2.11 million and postpaid customers grew by 35,000. M1 added 33,000 fibre customers during the year and this brings the customer base to 85,000 as at end 2013.

“Growth in 2014 will be driven by mobile data and fixed services. Mobile data will be driven by customers upgrading their smartphone plans and increasing adoption of smartphones by prepaid customers. Fixed services will benefit from the increasing fibre adoption in both the consumer and enterprise segments. We are well-placed to capitalise on these opportunities,” said Ms Karen Kooi, Chief Executive Officer of M1.

On network investment, the nationwide rollout of 3G radio network on the 900MHz spectrum will be completed by end of the first quarter, M1 said.

The company will also be upgrading its 4G network to LTE-Advanced, which can offer higher throughput speeds of up to 300Mbps, by end of the year. These enhancements are expected to further improve customer experience.

Based on current economic outlook and barring unforeseen circumstances, M1 estimates moderate growth in net profit after tax for the year 2014.

The Board of Directors has recommended a final dividend of 7.1 cents per share and a special dividend of 7.1 cents per share, taking full year payout to a total of 21.0 cents per share