M1 Limited (M1) is the smallest local telecommunication company in terms of revenue and market share. As we know, Singapore local telco sector is saturated with the emergence of Mobile Virtual Network Operators (MVNOs) and the impending entry of a fourth telco – TPG Telecom. This has resulted in stiff competition, turning listed telcos from favourites for yield-hungry investors into stocks with a large sell-off seen in past 2 years.

Many investors are naturally concerned about M1’s odds of excelling in a competitive industry, given that all its revenue is derived from Singapore. M1’s recent quarterly earnings have been lacklustre as well.

In this article, we shall look at its latest quarterly report to determine if it can return to its past glory days.

Increase in Revenue

Source: M1 Limited 2Q Earnings Presentation

M1’s revenue comprises Handset Sales, Fixed Services, International Call Services and Mobile Services. On a year-to-year basis, second ...