| Year Ended 31 December | |||
| 2015 S$’m |
2014 S$’m |
Change (%) |
|
| Operating revenue | |||
| Mobile telecommunications | 667.7 | 671.1 | -0.5 |
| International call services | 68.7 | 89.4 | -23.1 |
| Fixed services | 85.9 | 70.6 | 21.7 |
| Total service revenue | 822.3 | 831.1 | -1.1 |
| Handset sales | 334.9 | 245.3 | 36.6 |
| Total | 1,157.2 | 1,076.3 | 7.5 |
For 2015, operating revenue increased 7.5% to S$1,157.2 million mainly driven by higher handset sales. Service revenue decreased 1.1% to S$822.3 million, due to lower international call services revenue.
| Year Ended 31 December | |||
| 2015 S$’m |
2014 S$’m |
Change (%) |
|
| Mobile telecommunications revenue | |||
| Postpaid | 590.8 | 591.0 | 0.0 |
| Prepaid | 76.9 | 80.1 | -4.0 |
| Total | 667.7 | 671.1 | -0.5 |
| Average revenue per user (ARPU, S$ per month) | |||
| Postpaid | 61.7 | 62.4 | -1.1 |
| Postpaid (adjusted)1 | 54.2 | 55.6 | -2.5 |
| Data plan | 17.1 | 18.9 | -9.5 |
| Prepaid | 14.7 | 14.5 | 1.4 |
| Fibre broadband | 46.7 | 43.9 | 6.4 |
| Mobile data as a % of service revenue | 46.3% | 35.6% | – |
| 1 | After adjustment for ARPU allocated to handset sales |
Mobile telecommunications revenue decreased 0.5% to S$667.7 million due to lower prepaid revenue. Segmentally, postpaid revenue was stable at S$590.8 million. Prepaid revenue at S$76.9 million was 4.0% lower year-on-year due to lower voice traffic.
Mobile data revenue continued to grow with average smartphone data usage increasing to 3.3GB per month in the fourth quarter of 2015 from 3.0GB per month a year ago. Accordingly, mobile data contribution increased year-on-year by 10.7 percentage points to 46.3%. Data plan ARPU decreased 9.5% to S$17.1 due to the bundling with fixed services.
| Year Ended 31 December | |||
| 2015 S$’m |
2014 S$’m |
Change (%) |
|
| International call services revenue | |||
| Retail revenue | 53.0 | 75.2 | -29.6 |
| Wholesale and bilateral revenue | 15.8 | 14.2 | 11.3 |
| Total | 68.7 | 89.4 | -23.1 |
| Total international retail minutes (in millions) | 813 | 1,131 | -28.1 |
International retail minutes decreased 28.1% to 813 million minutes, mainly due to low usage to low value destinations. Accordingly, international call services revenue decreased 23.1% to S$68.7 million.
Handset sales increased 36.6% to S$334.9 million as a result of higher sales volume and selling price.
| Year Ended 31 December | |||
| 2015 S$’m |
2014 S$’m |
Change (%) |
|
| Cost of sales | 530.8 | 453.0 | 17.2 |
| Staff costs | 118.2 | 113.5 | 4.1 |
| Advertising and promotion expenses | 24.3 | 24.4 | -0.4 |
| Depreciation and amortisation | 118.4 | 114.4 | 3.5 |
| Allowance for doubtful debts | 8.9 | 11.4 | -21.7 |
| Facilities expenses | 82.1 | 80.7 | 1.7 |
| Leased circuit costs | 31.7 | 30.0 | 5.7 |
| Other general and administrative expenses | 25.6 | 29.7 | -13.9 |
| Total | 940.0 | 857.1 | 9.7 |
Operating expenses increased 9.7% to S$940.0 million mainly due to higher cost of sales.
| Year Ended 31 December | |||
| 2015 S$’m |
2014 S$’m |
Change (%) |
|
| Handset costs | 419.1 | 330.3 | 26.9 |
| Traffic expenses | 39.4 | 52.3 | -24.8 |
| Wholesale costs of fixed services | 38.4 | 32.6 | 17.6 |
| Other costs | 34.0 | 37.8 | -10.0 |
| Total | 530.8 | 453.0 | 17.2 |
Cost of sales increased 17.2% to S$530.8 million mainly due to higher handset costs. Handset costs increased 26.9% to S$419.1 million, driven by both higher sales volume and average unit cost. Wholesale costs of fixed services increased 17.6% to S$38.4 million due to an enlarged fibre customer base.
Staff costs increased 4.1% to S$118.2 million due to annual increment and higher headcount.
Advertising and promotion expenses remained stable at S$24.3 million.
Depreciation and amortisation expenses increased 3.5% to S$118.4 million as a result of higher asset base.
Doubtful debt allowance decreased 21.7% to S$8.9 million due to improved collection.
Facilities expenses increased 1.7% to S$82.1 million mainly due to higher repair and maintenance expenses.
Leased circuit costs increased 5.7% to S$31.7 million to support new base station sites acquired.
Other general and administrative expenses decreased 13.9% to S$25.6 million mainly due to one-off expenses incurred in 2014.
Finance costs increased 21.7% to S$4.9 million due to higher borrowings.
Provision for taxation decreased 3.3% to S$39.9 million mainly due to higher non-tax deductible expenses in 2014.
| Year Ended 31 December | |||
| 2015 S$’m |
2014 S$’m |
Change (%) |
|
| Net profit after tax | 178.5 | 175.8 | 1.5 |
| Net profit after tax margin (on service revenue) | 21.7% | 21.2% | |
Net profit after tax grew 1.5% to S$178.5 million and net profit after tax margin improved to 21.7% of service revenue.
| Year Ended 31 December | |||
| 2015 S$’m |
2014 S$’m |
Change (%) |
|
| EBITDA | 341.8 | 335.5 | 1.9 |
| EBITDA margin (on service revenue) | 41.6% | 40.4% | |
EBITDA increased 1.9% to S$341.8 million.
EBITDA margin, as a percentage of service revenue, was higher at 41.6%.
Capital expenditure incurred for 2015 was lower at S$133.5 million due to the completion of building extension in 2014.
Capital commitment as at 31 December 2015 was S$77.6 million which included S$64.0 million commitment for the 4G spectrum rights.
| Year Ended 31 December | |||
| 2015 S$’m |
2014 S$’m |
Change (%) |
|
| Profit before tax | 218.4 | 217.1 | 0.6 |
| Non-cash item and net interest expense adjustments | 80.8 | 86.6 | -6.8 |
| Net change in working capital | (60.1) | (30.8) | 94.9 |
| Net cash provided by operating activities | 239.1 | 272.9 | -12.4 |
| Net cash used in investing activities | (141.8) | (178.4) | 20.5 |
| Net cash used in financing activities | (110.1) | (126.1) | 12.7 |
| Net change in cash and cash equivalents | (12.8) | (31.7) | -59.5 |
| Cash and cash equivalents at beginning of financial period | 22.8 | 54.5 | -58.2 |
| Cash and cash equivalents at end of financial period | 10.0 | 22.8 | -56.2 |
| Free cash flow 1 | 105.7 | 93.2 | 13.4 |
| 1 | Free cash flow refers to net cash provided by operating activities less current year capital expenditure and payment for spectrum rights |
Operating cash flow decreased 12.4% to S$239.1 million. Free cash flow was 13.4% higher at S$105.7 million.
As at 31 December 2015, gearing ratio was 0.8 times compared to 0.7 times as at 31 December 2014. Interest coverage ratio (EBITDA/Interest) was 69.5 times for 2015, compared to 83.0 times for 2014.
