SINGAPORE (Oct 18): M1 has posted earnings of $34.4 million in 3Q16, 23.4% lower than the $44.9 million registered in the same quarter last year.

Operating revenue fell 10.3% to $249.1 million in 3Q16, compared to $277.6 million in 3Q15.

M1 says this was mainly due to lower revenue from handset sales, which fell 28.9% to $51.9 million in the quarter ended September, from $73.0 million in the same period last year.

Finance costs surged 43.6% to $1.9 million for 3Q16 due to higher borrowings and interest rate.

EBITDA fell 13.9% y-o-y to $74.6 million for 3Q16.

“Based on current outlook and barring unforeseen circumstances, the decline in net profit after tax for the year 2016 is likely to be around the year-to-date range,” M1 says in a filing to SGX on Tuesday.

Year to date, M1’s 9M2016 earnings have declined 12.6% to $117.9 million, compared to $134.9 million in 9M2015.

“The needs and behaviour of our consumers and corporates are changing rapidly. We will continue to make network investments to provide our customers with a superior and all-encompassing experience while also tapping into new growth areas in data analytics, IoT and other solutions,” says M1 CEO Karen Kooi.

M1 shares closed 1 cent higher at $2.33 on Tuesday.