M1 (formerly: MobileOne)

(08-06-2013, 09:28 PM)CityFarmer Wrote: The other RSPs are fighting back. I saw ViewQwest and MyRepublic's adverts in the paper today.

The bundle in their offers are mainly the OTT services. MyRepublic offers true entertainment on demand from NetFlix, Hulu, BBC etc. ViewQwest offers ViewQwest TV (i saw NetFlix, Hulu, PPTV and TVB? in the advert), and Toogle Prime Pack.

The bundle services are direct threat to Pay-TV services of SingTel and Starhub.

There is a cover story on ViewQwest on its latest offerings in the latest issue of The Edge.

After knowing the detail, here is my view

- the offer seems just a collection of OTT service providers' app, and the only ViewQwest's service is the VPN, which cost $10.7 pm, after initial free period.
- separate subscriptions needed for each content access, additional US$3-8, depend on service provider.
- not sure on legal side, using VPN to break the geographical rights openly is sustainable? I recalled there was one service provider offered the same, but withdrawn soon after.

If similar offers become a viable option to replace Pay-TV later, there is no reason M1 will not offer the same to complete its bundle package.

Generally, it is still not a serious threat to Pay-TV yet. No wonder can't feel the sense of urgency from Starhub's CEO interview on Pay-TV market in the same issue of The Edge.

(vested in M1)

Can anyone tell me about M1 "TIE" trend?
Thanks.

(22-06-2013, 07:16 AM)Temperament Wrote: Can anyone tell me about M1 "TIE" trend?
Thanks.

Not sure the meaning of "TIE" trend?

The "Time Interest Earned (TIE)" is almost the same as interest cover ratio (EBITDA/Interest) used in M1's AR.

The interest cover ratio is 54.4x for FY2012, and 52.1x for FY2011.

(23-06-2013, 11:45 AM)CityFarmer Wrote: The "Time Interest Earned (TIE)" is the almost the same as interest cover ratio (EBITDA/Interest) used in M1's AR.

The interest cover ratio is 54.4x for FY2012, and 52.1x for FY2011.

Thanks Cityfarmer!

It's crazy isn't it? i thought i look at the wrong data. 54 times and 52 times. Can we say in a way M1 is "overcharging" us
Thanks Cityfarmer!

(24-06-2013, 11:17 AM)Temperament Wrote: It's crazy isn't it? i thought i look at the wrong data. 54 times and 52 times. Can we say in a way M1 is "overcharging" us
Thanks Cityfarmer!

Maybe they are able to get a very low interest rates for their loans, or their loans amount is actually quite small compare to their operations?

This also means that if it comes to price war, they have much corners to trim than the others?

(24-06-2013, 02:46 PM)NTL Wrote:

(24-06-2013, 11:17 AM)Temperament Wrote: It's crazy isn't it? i thought i look at the wrong data. 54 times and 52 times. Can we say in a way M1 is "overcharging" us
Thanks Cityfarmer!

Maybe they are able to get a very low interest rates for their loans, or their loans amount is actually quite small compare to their operations?

This also means that if it comes to price war, they have much corners to trim than the others?

M1's gearing ratio is 74.8% in FY2012, and net amount is S$260 million. so it isn't a small amount.

M1's average interest rate is approx 2.1% ($125 million with fixed rate of 2.6%, and $125 million with a fixed rate of 1.6% via an interest rate swap). So it also isn't a very low interest rate, versus current market rate.

M1 can't overcharging its users, with a competitive telco market in Singapore.

So what is the likely reason? In comparison, Starhub's interest cover ratio is 36 (FY2012) and SingTel is 21 (FY2012)

IMO, the operation efficiency is the answer. M1's EBITDA margin (service revenue) is 39% (FY2012), while Starhub is 32% and SingTel is 28%.

(vested in M1 and SingTel)

(24-06-2013, 03:49 PM)CityFarmer Wrote:

(24-06-2013, 02:46 PM)NTL Wrote:

(24-06-2013, 11:17 AM)Temperament Wrote: It's crazy isn't it? i thought i look at the wrong data. 54 times and 52 times. Can we say in a way M1 is "overcharging" us
Thanks Cityfarmer!

Maybe they are able to get a very low interest rates for their loans, or their loans amount is actually quite small compare to their operations?

This also means that if it comes to price war, they have much corners to trim than the others?

M1's gearing ratio is 74.8% in FY2012, and net amount is S$260 million. so it isn't a small amount.

M1's average interest rate is approx 2.1% ($125 million with fixed rate of 2.6%, and $125 million with a fixed rate of 1.6% via an interest rate swap). So it also isn't a very low interest rate, versus current market rate.

M1 can't overcharging its users, with a competitive telco market in Singapore.

So what is the likely reason? In comparison, Starhub's interest cover ratio is 36 (FY2012) and SingTel is 21 (FY2012)

IMO, the operation efficiency is the answer. M1's EBITDA margin (service revenue) is 39% (FY2012), while Starhub is 32% and SingTel is 28%.

(vested in M1 and SingTel)

Hearsay, Singapore telcos charge one of the highest rate compare to Korea or some other countries in Asia, SEA. Hearsay only O. K.

Base on the info from Figure 2: Average Effective Price Per Minute for Selected AP17 Markets, with link below. The rate in Singapore is comparable to M'sia, lower than Philippine, Taiwan, Korea, NZ, Australia and Japan.

So the hearsay busted...

http://www.gsma.com/publicpolicy/wp-cont...bfinal.pdf