M1's H1 2010 profit up 1.5% to $80mln

The company will exploit new all fibre network technology to draw more retail and corporate customers.

M1 Limited on Thursday announced its unaudited group financial results for the six months ended 30 June 2010, according to an M1 report.

Operating revenue at S$472.1 million increased 25.3% year on year due to higher service revenue and handset sales. Service revenue rose 4.8% to S$364.0 million, benefiting from an enlarged customer base. EBITDA at S$156.7 million was up 1.0%. Net profit after tax at S$80.1 million was 1.5% higher.

For 2Q10, net profit at S$40.8 million was 10.0% higher year on year. M1’s total customer base was 1.849 million as at 30 June 2010. For 2Q10, M1 added 53,000 customers, of which 21,000 were postpaid customers and 32,000 were prepaid customers. Non-voice services contributed 30.8% of service revenue, up from 25.1% a year ago, driven by growth in the mobile broadband and smartphone customer base.

M1’s Board of Directors has declared an interim dividend of 6.3 cents per share.

Ms Karen Kooi, M1’s Chief Executive Officer, said: “The impending launch of the new all fibre network will change the current competitive landscape for fixed services. M1 will capitalize on the opportunities presented to address both retail and corporate segments.”

“Based on the current outlook, net profit after tax for the year 2010 is likely to improve, compared to 2009,” she said.