M1's net profit may have slipped 13% to $36m in 3Q12: CIMB

Blame it on the 4-5% decline yoy in topline due to lower handset sales.

CIMB estimates M1's net profit to be S$36m-40m in 3Q12, rising as much as 13% qoq while contracting 13% yoy. This is on the back of a flattish qoq and 4-5% decline yoy in topline due to lower handset sales.

Here's more from CIMB:

M1 may also report lower net profits than our full-year forecasts but in line with consensus as we believe our ARPU assumptions are overly aggressive.

Service revenue should have been flattish qoq and slightly up yoy, in our view, driven by mobile and fixed broadband. Margins should have improved due to lower handset costs and reduced SAC as customers held back from buying  smartphones while awaiting the launch of the iPhone 5.