Singapore’s M1 has reported a 10.7% decline in 2012 profit to S$146.5 million ($119.2 million), blaming higher handset subsidies.
The company also reported a 2.8% increase in revenue for the year to S$771.6 million.
In the fourth quarter, profit fell a slight 0.6% year-on-year. Quarter-on-quarter, net profit grew 14.4%, reversing declines in previous quarters.
Operating revenues in the quarter rose 3.3% to S$327.4 million from S$317.1 million the same period a year earlier.
Total service revenue grew 2.8% to S$194.1 million, of which mobile services remain the largest contributor with S$155.3 million of revenue, up 5.7%. Fixed services revenue jumped 18.4% to S$12.6 million, while international call revenue declined by over 16% to S$26.3 million.
Handset sales, meanwhile, rose 3.9% to S$133.3 million, due to new product launches and seasonality, M1 said.
During the quarter, M1 added 50,000 customers, bringing the total mobile customer base to 2.109 million, up 4.7% from 2011. Monthly postpaid churn for the year remained stable at 1.3%.
The operator's fixed service customer base grew from 44,000 to 52,000 in the quarter, with the adoption rate of fiber services likely to accelerate in 2013 as customers progressively complete their existing contracts, M1 noted.
The company expects moderate growth in net profit after tax for the year 2013.