M1 posts $150m in gains, eyes pay-TV action

PREMIER League football is a game too far for MobileOne (M1) at the moment but the telco said yesterday that it still has big ambitions in pay-TV.

Chief executive Karen Kooi told a results briefing yesterday that the firm, the only telco here without a pay-TV service, is keen to get in on the action.

But Ms Kooi said it did not make sense to invest millions to roll out a service of its own, the way StarHub and SingTel have done.

The company, which reported that profits inched up to $150.3 million for the financial year to Dec 30, is hoping to piggyback the Government's proposed common set-top box.

The Government is looking into the feasibility of a common national set-top box that can be used by all pay-TV players. This will allow firms to offer content to consumers without investing heavily in their own infrastructure. More details are expected later this year.

M1 is also watching to see if the regulator will put an end to exclusive contract deals. If this happens, M1 will explore how it can acquire content like English football for its customers.

In the meantime, it will look to acquire other 'relevant' content like Filipino programmes or online tuition services, said Ms Kooi.

She was also bullish about M1's prospects this year. The launch of the high-speed broadband network will let M1 compete on more even footing with its bigger rivals by allowing it to offer products like fixed-voice services that it cannot provide now as it lacks its own broadband network.

Ms Kooi acknowledged that the new network could lead to heightened competition between the three telcos, which could damage margins.

Even so, M1 should see higher revenues than its $781.6 million in sales this year and earnings will be 'at least comparable' to 2009's, she said.

Last year's revenues fell 2.4 per cent, hit by a 'challenging economic and operating environment', but cost-cutting helped it eke out a 1.3 percentage point rise in margins to 44.2 per cent.

Earnings per share was unchanged at 16.8 cents while net asset value per share was 28.6 cents, up from 24.9 cents as at Dec 2008.

Shareholders will get a final dividend of 7.2 cents per share, the same it paid out the previous year.

At the briefing, Standard Chartered analyst Lai Voon San queried the 'conservative' payout to shareholders and asked when shareholders could expect to see a special dividend.

Ms Kooi replied that pending the successful refinancing of an outstanding $250 million loan, which should be finalised within the next two months, it will consider a capital management exercise to return excess cash to shareholders.

M1 shares closed two cents down at $1.97.

Source: Straits Times, 20 Jan 2010.

Comment by Property Maestro (PM):

Looks like the Telcos are having a ball of a time.

First, they have our ears. Then, they take our eyes. Sooner or later, you will discover that you don't have much of a mind anymore. And next...your sooouuuullll. Very Leavis-ian, I know. For those of you dullards, I highly recommend F. R. Leavis. Keep a copy of his treatise in your toilet; there, you can fumigate and cleanse yourself of the filth...

Oh, and one more thing. All they really want is in your pocket, your back pocket, moron.