| |
| |
Year Ended 31 Dec |
| |
2005 |
2004 |
YoY |
| Operating revenue |
S$’m |
S$’m |
Change |
|
| Mobile telecommunications services |
582.9 |
569.6 |
2.3% |
| International call services |
121.8 |
111.4 |
9.3% |
| Others |
0.2 |
* |
nm |
|
| Total service revenue |
704.9 |
681.1 |
3.5% |
|
| Handset sales |
68.9 |
66.0 |
4.4% |
|
| Total |
773.8 |
747.1 |
3.6% |
|
* denotes less than S$0.05 million
“
nm” denotes not meaningful
Total operating revenue grew 3.6% year-on-year
to S$773.8 million, due mainly to higher service revenue
from a larger
customer base, especially the prepaid segment, as well as
growth in international call service revenue. The following
are more
details on each segment:-
| |
Year
Ended 31 Dec |
| |
2005 |
2004 |
YoY |
| Mobile telecommunications revenue |
S$’m |
S$’m |
Change |
|
| Post-paid |
516.9 |
520.0 |
-0.6% |
| Pre-paid |
66.0 |
49.6 |
33.1% |
|
| Total |
582.9 |
569.6 |
2.3% |
|
| Average revenue per user (ARPU, S$
per month) |
|
|
|
| Post-paid |
60.1 |
61.4 |
-2.1% |
| Pre-paid |
21.0 |
19.5 |
7.7% |
| Non-voice services as contribution
to ARPU (%) |
19.6 |
17.6 |
- |
Mobile telecommunications revenue
increased 2.3% to S$582.9 million, driven by growth in prepaid
revenue of 33.1% to
S$66.0 million. M1 was first to launch free incoming call
cards for the prepaid segment in February 2005, and this
contributed
to a 20.4% increase in prepaid customers to 436,000 as at
end 2005 as well as higher prepaid ARPU, which grew 7.7%
to S$21.0
per month for 2005. Postpaid revenue decreased by a slight
0.6% to S$516.9 million. M1’s postpaid customers grew
by 1.1% to
809,000 as at end 2005, but postpaid ARPU fell by 2.1% to
S$60.1 per month for 2005 as more customers optimised their
service
plans. Non-voice services’ contribution to ARPU increased
from 17.6% to 19.6% due to higher usage of data services,
such as
multi-media message services, access to M1’s mobile
portal MiWorld and music and ringtone downloads.
| |
Year
Ended 31 Dec |
| |
2005 |
2004 |
YoY |
| International call service revenue |
S$’m |
S$’m |
Change |
|
| Retail |
110.9 |
99.0 |
12.0% |
| Wholesale & bilateral |
11.0 |
12.4 |
-11.3% |
|
| Total |
121.8 |
111.4 |
9.3% |
|
International call service revenue increased
9.3% to S$121.8 million as retail traffic grew year-on-year
from 172 to 210
million
minutes in 2005. Wholesale revenue constitutes a relatively
small portion of M1’s international call services and
is dependent
on spare capacity available, thus varies from year to year.
Handset sales increased 4.4% to S$68.9 million, driven mainly
by higher handset selling prices from the increased sale of
new
mid- to high-end handsets.
| |
Year
Ended 31 Dec |
| |
2005 |
2004 |
YoY |
| |
S$’m |
S$’m |
Change |
|
| Cost of sales |
258.9 |
262.8 |
-1.5% |
| Staff costs |
90.3 |
89.0 |
1.5% |
| Advertising & promotion |
23.1 |
24.3 |
-4.9% |
| Depreciation & amortisation |
120.3 |
99.5 |
20.9% |
| Provision for bad & doubtful debt |
20.3 |
22.1 |
-8.1% |
| Other general & administrative expenses |
52.0 |
57.7 |
-9.9% |
|
| Total |
564.8 |
555.5 |
1.7% |
|
Total operating expenses increased 1.7%
to S$564.8 million due to 3G network expenses. However, as
a percentage of
operating revenue, it decreased 1.4% point to 73.0% – a
result of prudent cost management.
| |
Year
Ended 31 Dec |
| |
2005 |
2004 |
YoY |
| |
S$’m |
S$’m |
Change |
|
| Handset cost |
120.4 |
124.5 |
-3.3% |
| Traffic expenses |
37.9 |
36.5 |
3.8% |
| Leased circuit cost |
36.1 |
35.5 |
1.7% |
| Other cost |
64.5 |
66.3 |
-2.7% |
|
| Total |
258.9 |
262.8 |
-1.5% |
|
Cost
of sales fell 1.5% to S$258.9 million mainly due to lower customer
acquisition
cost and lower “other” cost (which
comprised base station facilities expenses,
billing fees, licence fees and connection
incentives).
Staff costs increased 1.5% to S$90.3 million
as M1 commenced recognising stock option
expense in 2005 (in accordance with
FRS102). Also, 2004 comparative figures
have been restated in compliance with the
provisions of the standard.
Advertising and promotion expenses fell 4.9%
to S$23.1 million.
Depreciation and amortisation expense increased
20.9% to S$120.3 million mainly due to commencement
of 3G network
depreciation and licence amortisation during
the year.
Provision for bad and doubtful debt fell
8.1% to S$20.3 million due to adjustment
for over-provision.
 s
Other general and administrative expenses
fell 9.9% to S$52.0 million as a result of
lower repair and maintenance expenses.
Finance costs remained constant at S$10.3
million for both 2005 and 2004, as M1’s
debt position did not change during the year.
Provision for taxation increased 40.7% to
S$40.8 million. Included in 2005 and 2004
were tax adjustments of S$1.7 million and
S$9.6 million respectively for reversal
of
over-provision in prior years and tax rate
reduction.
| |
Year
Ended 31 Dec |
| |
2005 |
2004 |
YoY |
| |
S$’m |
S$’m |
Change |
| |
|
(Restated)3 |
|
|
| Net profit |
161.0 |
153.9 |
4.6% |
| Net profit margin
(%) |
22.8 |
22.6 |
- |
| (on service revenue) |
|
|
|
Consequently,
net profit
improved 4.6%
to S$161.0
million,
and margin
improved
to 22.8%.
| |
Year
Ended 31 Dec |
| |
2005 |
2004 |
YoY |
| |
S$’m |
S$’m |
Change |
| |
|
(Restated)3 |
|
|
| EBITDA |
332.4 |
292.8 |
13.5% |
| EBITDA margin (%) |
47.2 |
43.0 |
- |
| (on service revenue) |
|
|
|
EBITDA increased 13.5% to S$332.4 million in 2005, and margin
improved to 47.2%.
Capital expenditure incurred in 2005 was S$62.3 million, down
from S$137.7 million in the previous year due to delayed
requirements for capacity build-up.
Capital commitment as at 31 December 2005 was minimal.
| |
Year
Ended 31 Dec |
| |
2005 |
2004 |
YoY |
| |
S$’m |
S$’m |
Change |
| |
|
(Restated)3 |
|
|
| Profit before tax |
201.8 |
182.9 |
10.3% |
| Net change in working capital |
(98.6) |
106.9 |
-192.2% |
| Other adjustments for non-cash items & interest
paid |
122.4 |
102.8 |
19.1% |
| Net cash provided by operating activities |
225.7 |
392.6 |
-42.5% |
| Net cash used in investing activities |
(63.4) |
(137.1) |
-53.8% |
| Net cash provided by/ (used in) financing activities |
(99.4) |
(222.5) |
-55.3% |
| Net change in cash and cash equivalents |
62.8 |
33.0 |
90.3% |
| Cash and cash equivalents at beginning
of financial period |
112.6 |
79.6 |
41.5% |
| Cash and cash equivalents at end of
financial period |
175.4 |
112.6 |
55.8% |
| Free cash flow2 |
163.4 |
255.0 |
-35.9% |
2 Free cash flow refers to net cash flow from operating activities
less capital expenditure
Operating
cash flow fell 42.5% to S$225.7 million due to payment
for fixed assets
of prior years. Hence, free cash flow
also fell
35.9% to S$163.4 million despite lower
year-on-year capital expenditure.
As at end of December 2005, net debt-to-equity
ratio was 16%, down from 34% a year ago.
Interest coverage ratio (EBITDA/
Interest) strengthened from 28.4x to
32.4x over the same period.
3 With the
adoption of FRS102 share-based payment, 2004 comparative
figures have been restated
(please refer to financial report
for
details)
|
|
