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M1 reports 7.1% rise in Q4 net profit

M1 has reported a 7.1 per cent increase in its fourth-quarter net profit to S$40.5 million. But its operating revenue fell 14.9 per cent to S$278.6 million, dragged down by a 46.3 per cent drop in handset sales. 

SINGAPORE: Telco M1 has reported a 7.1 per cent increase in its fourth-quarter net profit to S$40.5 million.

But its operating revenue fell 14.9 per cent to S$278.6 million, dragged down by a 46.3 per cent drop in handset sales.

For the full year, net profit increased 9.4 per cent to S$160.2 million, while operating revenue declined 6.4 per cent to S$1.01 billion.

The group declared a final dividend of 7.1 Singapore cents per share and a special dividend of another 7.1 Singapore cents per share. Its full-year payout amounted to a total of 21.0 cents per share.

Excluding handset sales, the telco said its full-year service revenue grew 6.3 per cent to S$819.8 million. This was driven by growth in postpaid and fixed customer base, as well as higher revenue from mobile data.

M1 said its 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 growing fibre adoption in both the consumer and enterprise segments.

Based on the current economic outlook and barring unforeseen circumstances, the telco is projecting moderate growth in its net profit after tax for the year 2014. 

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