M1's handset sales volume dropped in FY13 on waning popularity of iPhones

Operating revenue slightly hit.

According to Phillip Securities Research, M1 Ltd announced its FY13 results on 20 Jan 2013. Net profits increased 9.4% y-y due to strong growth in mobile and fixed services. EBITDA margin on service revenue was 38.1%. Free cash flow for the year increased to S$176.4 million. Special dividends of 7.1 cents per share was declared, bringing the total FY13 DPS to SGD 21 cents.

However, Phillip Securities said FY13 saw lower operating revenue, mainly due to declining handset sales at about S$188 million, lower by 38% y-y. The drop in handset sales volume maybe partially due to the waning popularity of iPhone in its view.

Here's more:

More Android handset models, which are generally cheaper than the iPhone models, are preferred by consumers for their larger screen size (as well as longer battery life).

Outlook for FY14

We continue to remain optimistic on the growth outlook for M1. With enhancements on its mobile network, M1 would improve its customers experience, leading to better customer retention. M1 also is able to explore further growth opportunities for its fixed services offerings within the Enterprise segment.