Chitchat CEO Karen Kooi Lee Wah M1 Crushed M1 Profit by 26%

[gingerlyn]

Karen Kooi Lee Wah (Chief Executive Officer)

Ms Kooi was appointed as Chief Executive Officer and Executive Director of M1 on 22 April 2009. Ms Kooi was also the Acting Chief Executive Officer of M1 from 1 February 2009 to 22 April 2009.

Ms Kooi joined M1 as Chief Financial Officer in August 1995. She was a key member of the senior management team responsible for the planning, development and launch of M1’s commercial operations. Prior to joining M1, Ms Kooi held various senior financial positions in large public listed companies, including Singapore Press Holdings Limited and City Developments Limited. She has over 30 years of experience in general and financial management.

Ms Kooi is a Fellow of the Association of Chartered Certified Accountants (UK) and holds a Master of Business Administration degree in Investment and Finance (Distinction) from the University of Hull in the UK.

 

[gingerlyn]

M1's net profit crashes 23.4% to 34.4m
Blame it on lower handset sales and weaker mobile revenue.

Before it even brace for the impact of a new possible telco player, M1 is already losing its lustre as it ended its 3Q16 on a low note, with earnings slumping 23.4%.

This is despite growing its customers base by 6.7% to 2.15 million

In an announcement filed on Singapore Exchange, M1 noted that its net profit declined to $34.4 million, in contrast with $44.9 million earnings recorded during the same period last year.

Its operating revenue slid 10.3% to $249.1 million, mainly due to the dip in the number of handsets sold, which saw a 28.9% contraction.

More so, its postpaid and prepaid revenue during the said quarter fell 6.1% and 10.4% to $137.8 million and $17.4 million, respectively.

Meanwhile, its total service revenue which includes turnovers from mobile telecommunications, fixed and international call service posted a 3.6% decline to $197.1 million.

Looking forward, M1 expects the telco industry to continue facing challenges by disruptive technologies, which would result in declines in traditional revenues.

"While customers consume more data with over-the-top (OTT) applications, growth in data revenue is likely to be moderated by competitively priced data offerings. Based on current outlook and barring unforeseen circumstances, the decline in net profit after tax for the year 2016 is likely to be around the year-to-date range," the telco said.

With this, M1 noted that they will continue to build its suite of cloud-based services bundled with data analytics and connectivity, to further penetrate the corporate and government sectors.

"We continue to invest in networks to strengthen our core business. Together with data analytics, internet of things (IoT) capabilities and new portfolio of digital solutions, M1 is well-placed to capture new opportunities in the digital space, beyond connectivity," M1 stressed.

 

[WujiBo]

A finance person managing a tech company?

Die lah!

 

[gingerlyn]

One missed call: M1's mobile service revenue suffers biggest shrinkage since 2009
Subscribers are becoming more watchful of their data usage.

Some analysts are probably shaking their heads right now as M1's 3Q16 results turned out to be worse than expected, crashing 23.4% to $34.4m.

According to RHB, M1 has disappointed for the second consecutive quarter as mobile service revenue surprisingly deepened.

"M1 said the steep decline in mobile service revenue in 3Q16 was due to the more cautious data usage by subscribers," RHB noted, pointing out that the contraction of 6% in the quarter was the largest since FY09.

"A continuation of the underlying trend may signify a structural change in data consumption behaviour and potentially impede effective data monetisation plans, in our view," the firm added.

DBS Group Research took notice of the other factors that led to the decline, which were the mobile roaming and adoption of SIM only plans.

"Accrued handset revenue decreased ~S$7m in 3Q16 versus 2Q16 due to lower iPhone sales," it said.

The brokerage firm noted that this resulted in a $7m adverse impact on earnings which is likely to continue as M1 still has $67m in accrued handset revenue.

Meanwhile, OCBC Investment Research stressed that the increasing adoption over-the-top services has impacted traditional telecommunications services such as international call and roaming.

"Postpaid and prepaid revenue in 3Q16 fell 6.1% and 10.4% YoY, respectively," OCBC stated.

 

[iluvgst]

most of the businesses here have run out of ideas and innovation can merely rely on the 6.9m population ponzi scheme to keep their profits ringing. any slow down towards that and profits drop like rock.