I have been holding M1 for the longest time since 2008 for its good dividend payouts over the years. On 18th October 2016, M1 announced its 3Q2016 financial results. We can see how much the financials have deteriorated. Thus, I made the decision to divest M1 in my stock portfolio. A telco operator’s revenue is very much predictable based on its prepaid and postpaid revenue. Operating revenue, profit after tax and prepaid, postpaid revenue all fell for M1 over the quarters. Given the higher risks than benefits, below are few of the reasons I decided to divest M1.

1. Decreasing Operating Revenue

For the nine months ended 30 September 2016, service revenue decreased 1.4% year on year to S$604.5 million.

2. Profit After Tax Fell by 23.4%

Profit after tax (S$m) and margin on service revenue fell as much as 23.4% to S$34.4 million in ......