M1 Q2's result - not the best

M1 released its Q2 result after trading hours today.

Q2 Y-O-Y
Net Profit up 1.0%
Diluted EPS up 0.5%

Q1 Y-O-Y
Net Profit up 6.6%
Diluted EPS up 5.0%

1H Y-O-Y
Net Profit up 3.8%
Diluted EPS up 3.0%

Notice that Q2's result was a drag. It dragged the overall 1H 2015 profits to 3.8%. Contrast this with Q1's profit of 6.6% increment. 

I looked at its detailed financial statement and realised that QoQ revenue was stable ($294M vs $278M - drop largely due to lower handset sale, maybe iPhone & Samsung lull period). Margins however were compressed in Q2 due to higher cost of sales (likely to be handset sale).

The saving grace, however, is that Management guidance for FY2015's results is still "Moderate Growth" (mid to higher single digit). However, that's not to say that they can't miss that guidance. Who knows?

The next saving grace, is that interim dividend remained at 7 cents (no change). This could probably provide some support M1's share price.

Not overly concerned nor overly complacent with Q2's result. Still hoping that Q3 and Q4 would bring would turn the tides, especially with new handsets from Apple & Samsung in the later half of the year.