This telco is still the subject of M&A market talk

SINGAPORE (Dec 27): RHB is keeping its “neutral” call on M1 with lower target price of $2.05 given the emergence of TPG Telecom, dubbed a “potentially disruptive but likely rational” fourth mobile player by the research house.

In a Dec 23 report, RHB says M1 exhibited the largest revenue/EBITDA share decline over the past two years but has the biggest exposure to the domestic market with a lack of bundling strategy to retain subscribers.

The research house says M1 is highly susceptible to revenue and EBITDA pressure from TPG as M1’s mobile segment makes up 80% and an estimated 70% of the group’s 9M16 service revenue and EBITDA respectively.

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