M1 (formerly: MobileOne)

[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!

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)