This is due to a looming increase in the company’s expenses.
DBS Research forecasted that M1’s earnings will decline by 12% YoY, because of a looming increase in the company’s project-related expenses.
Said expenses caused a decline to M1’s earnings before interest, taxes, depreciation and amortization (EBITDA) in the previous quarters.
M1’s EBITDA is also expected to decrease by 3% until 2020 because of higher depreciation and amortisation costs caused by higher investments on network assets and spectrum.
Further, a decrease in earnings will negatively affect M1’s dividend payment (80% of earnings) and share price.
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