M1 share price sank as it posted a 20.8% quarter-on-quarter decline in Q2 net profit.
Adding on to the results, SPH, Keppel T&T, and Malaysian telco Axiata Group Berhad have also announced that they will not further their strategic review to dispose of their respective stakes in M1.
According to the Edge Singapore:
Meanwhile, M1’s EBITDA in 2Q fell 10.7% to $73.4 million, from $82.2 million a year ago.
Operating revenue grew 4.7% to $251.6 million, from $240.4 million a year ago. Compared to 1Q17, operating revenue was 3.5% lower q-o-q.
This increase in 2Q was mainly due to a 28.8% increase in handset sales to $46.9 million, compared to $36.4 million a year ago.
Meanwhile, its total service revenue held steady, edging up by 0.4% to $204.7 million.
This was largely due to a 21.9% increase in revenue from fixed services to $31.1 million, offset by a 2.1% decline in mobile telecommunications services revenue to $159.5 million and a 8.6% drop in international call services revenue to $14.0 million.
In terms of price action, M1 is definitely facing some downward pressure for retail investors. The stock plunged more than 7% today, breaking below $2.00.
However, when stock price plummets too much in a day, some investors are already looking for the bargain. M1 is currently trading at $1.935 cum-dividend.
The ongoing discussion about retail investors’ opinions on M1’s target price is found here.
At the same time, CIMB Securities’s latest research report initiates a target price of $1.70, which is found here.
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