M1 (formerly: MobileOne)

[CY09]

Gearing rose because the company has been sustaining its sky high dividends through cashflow and borrowing more.

It is unsustainable as they eventually have to repay the debts (which is soon). Perhaps its also due to their majority shareholders needing cash to help other segments of their business. So milking the child company and then hoping they can offload their stakes after bleeding the child dry.

[corydorus]

Can't understand why would one want to takeover or privatize it considering it is a weak business. So not talking even about good premium. Upside is limited with 4th Telco, and M1 is wholly local market.

How about a buyer with global telco biz, M1 is just part of its global strategy? How about an "acquisition" which will eliminate the downside of 4th telco in Singapore?

I don't consider M1 biz is weak, with ROE 37%, and ROCE 20%, based on the latest 2016 AR.

(just wild speculation)

So called off. Nobody going to offer a realistic price that main shareholder would like to have i guess.

[axt]

http://infopub.sgx.com/FileOpen/_Form%20...eID=462392

What is the rational as both are owned by Temasek?

[specuvestor]

Seatown is like an alternative investment arm just like Fullerton is more a traditional long fund. They are independently managed units from Temasek

[Art or Science]

The share price is now languishing at $1.76. It takes a lot of conviction to hold/ buy, taking into consideration the competition from 4th Telco and OTT, decreasing ARPU, etc. Will its fibre and corporate side of the business pick up the slack? Any comments from valuebuddies?

I noticed that M1 has been doing a lot of marketing promos lately though.

[frus]

M1 has to do more marketing just to maintain its market share, given the competition.

They have cut dividends, but will these cuts be sufficient, with gearing still rising?

http://riskon.net/starhub-and-m1-continu...isappoint/

[weijian]

M1 announced its 3Q17 results this week. Noticeably, YoY decline of profitability (in double digits) has slowed down to single digit.

http://infopub.sgx.com/FileOpen/3Q17SGXA...eID=474252

[frus]

It's time to close shorts on M1 - a lot of news is priced in and results are less negative (mobile revenue +3.4%), while data growth is exploding:

http://riskon.net/close-shorts-in-singap...-top-pick/

[CY09]

http://infopub.sgx.com/FileOpen/FY17SGXA...eID=486064

M1's full year profits is out. Profit decline has slowed to single digit negative reversion and that is good. Its mobile phone segment's revenue has stabilized after the price war among the 3 telecos. What is good is that M1 has grown its user base in 2017 by 3.6%, despite Singapore's overall population growing by 0.1% YoY.

However handset sales is declining probably due to more people opting for SIM-only plans which means the public are moving to to buying handsets separately from contracts and this is hurting M1.

No doubt debt has increased, but it should not be too big an issue until 2020; when 2.45% interest can no longer be given

What amazed me was the final dividend amount of 6.2 cents. The total dividend payout amount will be 57.6 mil, and that is more than the amount of cash holdings M1 has reported on its balance sheet (46.5 mil). While it is true that M1's generates about 28 mil of free cash flow per quarter. The dividends declaration will be eating into cash flow generated in next Q1. Wonder if this is a sign of how cash hungry its parent companies are.

[corydorus]

http://infopub.sgx.com/FileOpen/FY17SGXA...eID=486064

M1's full year profits is out. Profit decline has slowed to single digit negative reversion and that is good. Its mobile phone segment's revenue has stabilized after the price war among the 3 telecos. What is good is that M1 has grown its user base in 2017 by 3.6%, despite Singapore's overall population growing by 0.1% YoY.

However handset sales is declining probably due to more people opting for SIM-only plans which means the public are moving to to buying handsets separately from contracts and this is hurting M1.

No doubt debt has increased, but it should not be too big an issue until 2020; when 2.45% interest can no longer be given

What amazed me was the final dividend amount of 6.2 cents. The total dividend payout amount will be 57.6 mil, and that is more than the amount of cash holdings M1 has reported on its balance sheet (46.5 mil). While it is true that M1's generates about 28 mil of free cash flow per quarter. The dividends declaration will be eating into cash flow generated in next Q1. Wonder if this is a sign of how cash hungry its parent companies are.

Two questions in my mind.

Expenses decreased by 10M. Is this sustainable ? 
Rev decrease despite increase users. What this means ?