M1 – BT

M1 Q2 profits flat, interim dividend higher at 6.2 cents

SINGAPORE – MobileOne (M1) said on Thursday that its net profit for Q208 increased 1.2 per cent to $41.1 million (US$30.2 million) as Singapore’s third ranked telco struggled with higher customer costs in a competitive market.

But M1 did not disappoint shareholders and announced a higher interim dividend of 6.2 cents from 2.5 cents a year ago.

Earnings per share was 4.6 cents, up 7 per cent.

For the six months ended June 30 2008, net profit decreased 12.4 per cent to $79.1 million, as the previous corresponding period gained from a tax adjustment.

The company’s operations in Q208 remained stable, consistent with the prospect statement made, it said.

On prospects for the rest of the year, M1 said full mobile number portability was introduced on June 13, 2008 and during the quarter, the mobile market saw an increase in competitive activities, and as expected, M1 saw increases in both its acquisition and retention costs.

This level of competitive activities is likely to settle down in a quarter or two, it said. — SIOW LI SEN, BT NEWSROOM

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