About Multinet
Multinet is a leading independent
telecommunications solution provider in
Pakistan, operating a nationwide optical
fibre cable network, connecting the major
cities across Pakistan. The network enables
Multinet to offer multiple and leading edge
business services solutions for the carrier
and Enterprise B2B segments such as
point-to-point data connectivity, domestic
and global Multi Protocol Label Switching
(MPLS), broadband data, two way video,
data centre facilities and secure bandwidth
solutions for businesses. Over its 10 year
history, the company has transformed
and grown to become a successful
enterprise with a workforce of over 750
telecommunications professionals with
a blue chip carrier client portfolio, both
domestic and international. The Multinet
team has an unbeaten track record
of consistently delivering better than
99% availability and uptime. The key to
Multinet’s success has been its unshaken
B2B focus and its vision to be the leading
IT/infrastructure company in Pakistan.
For the financial year ended 31 December
2015, the company recorded a revenue
of PKR7.0 billion and Earnings Before
Interest, Tax, Depreciation and Amortisation
(EBITDA) of PKR0.8 billion.
BUSINESS
REVIEW
M1 continued to focus on customer service
excellence throughout 2015. It upgraded
its customer care system, which resulted
in improvements in M1 retail outlets
operational efficiency and services by up
to 35%. Its efforts in service excellence
were recognised at the Singapore
Productivity Awards 2015 with the Award
of Excellence in IT sector. It also received
recognitions from the second annual
Frost & Sullivan Customer Experience
study for Excellence in areas of Customer
Experience (Overall Telecommunication
Services), Customer Experience (In-Store
Channel), Customer Experience (Contact
Centre Experience) and Customer
Experience (Mobile). The Company’s
employees’ positive engagement with
customers were acknowledged at the
2015 Excellent Service Awards with 4
Stars, 27 Gold, and 68 Silver awards.
For the fourth consecutive year, M1’s
Changi Airport Terminal 3 retail outlet
also received the Changi Airport Group’s
Outstanding Outlet Award.
The Company continues to invest in
upgrading and modernising its networks and
technology to enable customers to enjoy the
latest next-generation products and services.
In 2015, IDA’s network survey identified M1 as
delivering the best 4G experience.
Financial Performance
In 2015, M1’s operating revenue increased
7.5% Year on Year (YoY) to S$1,157.2 million
fuelled by higher handset sales. Service
revenue decreased 1.1% to S$822.3 million,
due to lower international call services
revenue. Mobile data revenue continued
to grow, increasing 10.7 percentage points
YoY to 46.3% of service revenue for 2015.
Earnings Before Interest, Tax, Depreciation
and Amortisation (EBITDA) increased 1.9%
YoY to S$341.8 million, with EBITDA margin
on service revenue increasing 1.2 percentage
points to 41.6%. Net profit after tax increased
1.5% YoY to S$178.5 million while free cash
flow increased 13.4% to S$105.7 million and
net debt-to-EBITDA remained healthy at 1.0
time.
Outlook for 2016
Amidst sluggish global economic growth
due to moderated growth in China, low
oil prices and higher interest rates, new
opportunities exist in the digital economy.
Throughout the years, M1 has laid the
groundwork in its people, technology,
networks and financial strength, and
will leverage on these to tap into new
opportunities.
The Company will continue developing its
data analytics to provide products and
services which incorporate embedded
sensors and connectivity, as well as
leverage on its M2M Connect Platform to
deliver smart solutions for customers.
Mobile data and fixed services will continue
to be key drivers of growth in 2016, and
M1 will continually invest in upgrading its
2014
2014
2015
2015
1,076.3
335.5
40.4%
1,157.2
341.8
41.6%
REVENUE
EBITDA & EBIDTA
MARGIN (%)
7.5%
1.9%
SGD Million
SGD Million
2014
2014
2015
2015
175.8
1.96
178.5
2.06
PAT
SUBSCRIBERS
1.5%
5.1%
SGD Million
Million
mobile and fixed networks to enhance
usage experience and grow its portfolio
of innovative products and services.
In fixed services, M1 is establishing
itself by securing new customers in the
government and corporate sectors with
its extensive ultra-high speed connectivity
solutions, as well as cloud-based data
centre and managed services.
axiata group berhad | annual report 2015
108
