M1 Slows on Profit Growth

MobileOne reports net income of S$80.2M for the first half of the year, down 7.1%

July 20, 2005

1 Min Read

SINGAPORE -- MobileOne Ltd (M1) today announced that its net profit after tax for the six months ended 30 June 2005 was S$80.2 million with operating revenue of S$384.2 million. Earnings before interest, tax, depreciation and amortisation (EBITDA) for the period increased 8.4% year on year, to S$163.2 million. EBITDA margin on service revenue improved 2% to 46.5%.

M1’s net profit before tax for the first half of the year grew by 2.3% year on year. Net profit after tax dipped 7.1% without the benefit of significant tax adjustment in 2005. Net profit margin was 22.9%.

Based on the results, M1 will pay an interim dividend of (S$) 5.0 cents per share for 1H 2005. For full year 2005, M1 will maintain a dividend pay out ratio of at least 70%.

M1 had a total of 1.239 million customers as at 30 June 2005. The number of customers on 3G was about 5,400. The prepaid customer base grew strongly during the second quarter, with an increase of about 41,000.

For full year 2005 and based on the current outlook, M1 expects to achieve low single-digit growth in profit after tax. "Net profit margin remains under pressure as we are incurring 3G network operating costs, depreciation and amortisation, while 3G revenue will not have meaningful impact in FY 2005," said Neil Montefiore, Chief Executive Officer of M1.

MobileOne Ltd. (M1)

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