Results
In 2010, we achieved a net profit after tax of S$157.1 million, a 4.5% growth over the previous year. Service revenue increased 4.6% to S$732.9 million, driven mainly by growth in customer base and contribution from fixed services. The Board is recommending a final dividend of 7.7 cents a share, and a special dividend of 3.5 cents a share, bringing full year dividend to 17.5 cents a share, or a 100% payout of net profit after tax.

Developments
2010 saw the commercial launch of the Next Generation Nationwide Broadband Network (NGNBN) in September. Offering internet surfing speeds of up to 1 Gbps, the NGNBN is the broadband network of the future and will transform the way we currently work, live, learn and interact. At M1, we geared up for the launch to become the first operator to provide ultra high-speed broadband services to both residential and corporate customers, on this new network. While its introduction is a milestone in the telecommunications industry in Singapore, the transition will be a gradual one for customers as the rollout is progressive with a targeted 95% coverage by mid-2012. We will continue to build on our strong foundation and increase the penetration of our fixed and mobile products and services into homes and businesses.

Outlook
Looking forward, there are positive trends for M1 within the telecommunications industry.

The mobile market will see an increased adoption of smartphones, tablets and mobile broadband devices, and consequently, a higher demand for network performance, customer care and service innovation. M1’s long-held focus on excellence in these areas will see us investing to upgrade our mobile network and adopting new initiatives to further enhance customer experience.

Our expansion into the fixed market will continue in 2011. In addition to providing fixed broadband and fixed voice services, we took the first step towards a pay TV service with the launch of 1box in November 2010. The service enables internet access and surfing on TV, as well as access to a range of on-demand entertainment and education content. This is a measured approach to gain a presence in the pay TV business and position ourselves to take advantage of opportunities that will arise as a result of increasing penetration of connected devices, as well as regulatory changes that support open access for IPTV infrastructure and mandatory cross carriage of exclusive content.

On corporate business, the Internet Service Provider (ISP) acquired in September 2009 has been fully integrated within M1, and provided us with a ready base of corporate customers. The introduction of the NGNBN has enabled businesses to have more choices in terms of service providers and at the same time, enjoy better value for their service plans. At M1, we have the experience, expertise and nimbleness to grow our market share in this segment, and the current year will see us building on our suite of corporate offerings to give customers greater value.

Strategically, we will continue to grow and expand our service offerings across both fixed and mobile platforms, as well as embrace growth opportunities to entrench M1 as a credible and dynamic full-service operator.

Shareholder value
Since IPO, M1 has built up a strong track record of capital distribution to shareholders. We remain committed to enhancing long-term shareholder value and maintaining a sustainable payout policy. This includes a regular review of our funding requirements and capital structure, and, as and when appropriate, returning cash in excess of our current and foreseeable requirements to shareholders. In line with this approach, the Board of Directors has recommended a special dividend of 3.5 cents a share, in additional to the final dividend of 7.7 cents a share. Taken together with the interim dividend, the total dividend proposed for FY2010, at 17.5 cents a share, represents a 30.6% increase in dividend a share over the previous year.

In 2010, M1’s share price has performed well, and when combined with dividends received by shareholders during the year, total shareholders’ return was a healthy 31.5%.

Board
On Board composition, I would like to thank Dato’ Yusof Annuar Yaacob, who stepped down from the Board on 31st October 2010 following his resignation from Axiata Group. He contributed valuable insights into the regional telecoms market in his five years on the Board.

I would also like to thank Dr. Thio Su Mien and Mr. Patrick Yeoh for their services to the M1 Board since November 2002. Dr. Thio and Mr. Yeoh retire from office at the AGM on 7th April 2011 and will not be seeking re-appointment. Both of them have contributed greatly to the M1 Board, particularly on finance, legal and governance matters.

Finally, I thank fellow Board members, shareholders, customers, business partners and M1 management and staff for their continued support. We operate in a fast-moving industry full of challenges and opportunities, and with the collective effort of all stakeholders, I believe M1 will continue to thrive in this environment and create long-term value for all.