Dialling down on M1

SINGAPORE (July 18): UOB Kay Hian has maintained its sell recommendation for M1, with a lower target price from $2.14 to $2, following the release of its results for 2QFY2016.

To recap, M1 reported earnings of $41 million for 2QFY2016, which was below the $44.7 million earnings forecast by UOB Kay Hian’s Jonathan Koh.

During the quarter to June, the telco added 14,000 post-paid subscribers and 24,000 pre-paid subscribers. However, post-paid average revenue per user (ARPU) fell by 3.5% to $59.90 impacted by the increased take-up for SIM-only plans and shared plans and lower roaming revenue. Pre-paid ARPU fell 17.4% to $12.30 on lower usage for voice and international call.

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