M1

M1: 1Q14 net profit climbed 4.4% to 42.8m, while 1Q14 operating revenue was 1.2% lower y/y at $240.2m. Service revenue grew 2.1% to $203.9m on growth in mobile data usage and customer base, offset by lower handset sales. Bottomline was buoyed by reduction of handset costs. Mobile customer base grew 2.9% y/y to 2.1m. Trends to note include postpaid revenue accelerated to multi-year high of 7% y/y, as ARPU strengthened by a solid 6%. The doubling of excess data pricing since Jan contributed to the ARPU gain. Deutsche highlights that within context, the slow and steady increase in post-paid subscribers exceeding data allowances bodes well for subsequent quarters. M1 is looking to launch Voice over LTE in the coming months and expects LTE Advanced network upgrade will be completed by end 2014. Latest broker ratings: CS: O/PF, TP $3.64 Deutsche: Buy, TP $3.82