| Group | |||
| Year Ended 31 December | |||
| 2017 S$’m |
2016 S$’m |
YoY Change |
|
| Operating revenue | |||
| Mobile telecommunication services | 642.5 | 640.0 | 0.4% |
| International call services | 55.9 | 61.3 | -8.9% |
| Fixed services | 129.7 | 104.2 | 24.5% |
| Total service revenue | 828.1 | 805.5 | 2.8% |
| Handset sales | 243.0 | 255.4 | -4.9% |
| Total | 1,071.1 | 1,060.9 | 1.0% |
For 2017, service revenue increased 2.8% to S$828.1 million, driven by higher Fixed Services revenue. Handset sales were 4.9% lower due to lower sales volume. Accordingly, operating revenue was 1.0% higher at S$1,071.1 million for FY2017.
| Group | |||
| Year Ended 31 December | |||
| 2017 S$’m |
2016 S$’m |
YoY Change |
|
| Mobile telecommunications revenue | |||
| Postpaid | 582.3 | 569.7 | 2.2% |
| Prepaid | 60.2 | 70.3 | -14.3% |
| Total | 642.5 | 640.0 | 0.4% |
| ARPU (per month) | |||
| Postpaid (excludes Data Plan) | 55.8 | 58.0 | -3.8% |
| Postpaid (excludes Data Plan and adjusted)1 | 48.7 | 50.3 | -3.2% |
| Data plan | 12.7 | 14.8 | -14.2% |
| Prepaid | 10.7 | 12.2 | -12.3% |
| Fibre Broadband | 43.5 | 45.1 | -3.5% |
| Mobile data contribution as a % of service revenue | 55.7% | 54.0% | |
| 1 | After adjustment for ARPU allocated to handset sales |
Mobile telecommunications revenue increased 0.4% to S$642.5 million. On a segmental basis, postpaid revenue increased 2.2% to S$582.3 million due to increased subscription revenue from take-up of higher-end plans and wholesale revenue contribution from MVNO. Prepaid revenue at S$60.2 million was 14.3% lower year-on-year due to lower voice traffic.
Mobile data usage continued to grow with average smartphone data usage increasing to 4.3GB per month in the fourth quarter of 2017 from 3.6GB per month a year ago. Accordingly, mobile data revenue increased 1.7 percentage points to 55.7% of service revenue.
| Group | |||
| Year Ended 31 December | |||
| 2017 S$’m |
2016 S$’m |
YoY Change |
|
| International call services | |||
| Retail revenue | 36.0 | 42.5 | -15.4% |
| Wholesale and bilateral revenue | 19.9 | 18.8 | 5.9% |
| Total | 55.9 | 61.3 | -8.9% |
| Total international retail minutes (in millions) | 631 | 696 | -9.4% |
International retail minutes decreased 9.4% to 631 million minutes, due to decline in usage. Accordingly, international call services revenue decreased 8.9% to S$55.9 million.
Handset sales decreased 4.9% to S$243.0 million as a result of lower sales volume and selling price.
| Group | |||
| Year Ended 31 December | |||
| 2017 S$’m |
2016 S$’m |
YoY Change |
|
| Cost of sales | 471.5 | 461.5 | 2.2% |
| Staff costs | 122.5 | 115.0 | 6.6% |
| Advertising and promotion expenses | 19.4 | 22.1 | -12.2% |
| Depreciation and amortisation | 129.9 | 126.8 | 2.5% |
| Allowance for doubtful debts | 9.0 | 8.4 | 8.1% |
| Facilities expenses | 86.4 | 86.4 | -0.1% |
| Leased circuit costs | 32.8 | 31.5 | 4.1% |
| Licence fees | 3.8 | 4.2 | -9.8% |
| Other general and administrative expenses | 24.5 | 25.0 | -2.1% |
| Foreign exchange (gain)/loss | 0.1 | (*) | @ |
| Total | 899.9 | 880.9 | 2.2% |
| * | Denotes less than S$0.05 million |
| @ | Denotes more than -/+300% |
Operating expenses increased 2.2% to S$899.9 million mainly due to higher cost of sales and staff costs.
| Group | |||
| Year Ended 31 December | |||
| 2017 S$’m |
2016 S$’m |
YoY Change |
|
| Handset costs | 339.7 | 343.9 | -1.2% |
| Traffic expenses | 38.7 | 39.2 | -1.2% |
| Wholesale costs of fixed services | 56.1 | 45.1 | 24.4% |
| Other costs | 36.9 | 33.3 | 10.9% |
| Total | 471.5 | 461.5 | 2.2% |
Cost of sales at S$471.5 million for FY2017 was 2.2% higher year-on-year mainly due to higher wholesale costs of fixed services. Handset costs decreased 1.2% to S$339.7 million due to lower sales volume and average unit costs. Wholesale costs of fixed services increased 24.4% to S$56.1 million as a result of a larger fibre customer base.
Staff costs increased 6.6% to S$122.5 million due to salary increment and bonus pay-outs.
Advertising and promotion expenses decreased 12.2% to S$19.4 million, due to lower marketing activities.
Depreciation and amortisation expenses increased 2.5% to S$129.9 million mainly due to higher fixed asset base.
Allowance for bad and doubtful debt increased 8.1% to S$9.0 million.
Facilities expenses at S$86.4 million were stable year-on-year.
Leased circuit costs at S$32.8 million for FY2017 were 4.1% higher year-on-year.
Other general and administrative expenses decreased 2.1% to S$24.5 million.
Finance costs increased 46.5% to S$9.9 million for FY2017 due to higher borrowings and interest rate.
Provision for taxation increased 4.2% to S$30.1 million for FY2017. FY2016 benefited from a write-back of overprovision for tax.
| Group | |||
| Year Ended 31 December | |||
| 2017 S$’m |
2016 S$’m |
YoY Change |
|
| Net profit after tax | 132.5 | 149.7 | -11.5% |
| Net profit after tax margin (on service revenue) | 16.0% | 18.6% | |
Net profit after tax at S$132.5 million for FY2017 was 11.5% lower and net profit after tax margin was 16.0% of service revenue.
| Group | |||
| Year Ended 31 December | |||
| 2017 S$’m |
2016 S$’m |
YoY Change |
|
| EBITDA | 302.4 | 312.1 | -3.1% |
| EBITDA margin (on service revenue) | 36.5% | 38.7% | |
EBITDA decreased 3.1% to S$302.4 million.
EBITDA margin, as a percentage of service revenue, was lower at 36.5%.
Capital expenditure incurred for FY2017 was S$151.1 million as compared to S$140.5 million for FY2016.
Capital commitment as at 31 December 2017 was S$199.8 million which includes S$188.0 million for the 700 MHz spectrum.
| Group | |||
| Year Ended 31 December | |||
| 2017 S$’m |
2016 S$’m |
YoY Change |
|
| Profit before tax | 162.6 | 178.6 | -8.9% |
| Non-cash item and net interest expense adjustments | 114.0 | 103.4 | 10.2% |
| Net change in working capital | (17.6) | 52.9 | (133.3%) |
| Net cash provided by operating activities | 259.0 | 334.9 | (22.7%) |
| Net cash used in investing activities | (160.6) | (220.2) | 27.1% |
| Net cash used in financing activities | (63.0) | (113.7) | 44.6% |
| Net change in cash and cash equivalents | 35.5 | 1.0 | @ |
| Cash and cash equivalents at beginning of financial year | 11.0 | 10.0 | 10.5% |
| Cash and cash equivalents at end of financial year | 46.5 | 11.0 | @ |
| Free cash flow 1 | 106.7 | 129.6 | -17.6% |
| 1 | Free cash flow refers to net cash provided by operating activities less current year capital expenditure and payment for spectrum rights. |
| @ | Denotes more than -/+300% |
Operating cash flow decreased 22.7% to S$259.0 million. Accordingly, free cash flow was 17.6% lower at S$106.7 million.
As at end December 2017, gearing ratio was 0.9 times compared to 1.0 time as at end December 2016. Interest coverage ratio (EBITDA/Interest) was 30.6 times for 2017 compared to 46.2 times for 2016.
