Incumbent fixed operator, Telekom Malaysia Bhd's entry into 4G market may put more pressure on mobile phone operators.
KUALA LUMPUR: Telekom Malaysia Bhd
(TM) recorded a 28.5% year-on-year (yoy) lower net profit at RM230.43mil for the first quarter of financial year 2017 ended March 31, on the back of reduced operating profit before finance cost and lower foreign exchange gain on its borrowings.
In a filing with the Bursa Securities on Tuesday, the telecommunications services provider announced that its operating profit before finance cost decreased by approximately 9.5% to RM299.1mil. This was driven by the absence of any other significant gains that was recorded in the corresponding quarter last year from a decrease in the company’s obligation on a put option over shares of “webe” held by non-controlling interest.
With regard to overall revenue, TM registered a 3.8% yoy higher top line at RM2.96bil, in contrast to the RM2.86bil revenue recorded a year ago.
“For the first quarter of financial year 2017, the Group’s revenue increased by RM109.2mil or 3.8% to RM2.96bil, mainly due to higher revenue from Internet and multimedia, data, other telecommunication and non-telecommunication related services,” said TM in the filing to the stock exchange.
Segmental wise, TM’s all three segments saw improvements in revenue, which contributed to the higher overall turnover. The telecommunications services provider’s mass market segment registered 4.2% yoy increase in revenue to RM1.31bil, primarily attributed to higher cumulative UniFi customers and continuing increase in the purchase of premium channels and Video-on-Demand (VOD).
The managed accounts segment’s revenue was 1.8% yoy higher at RM1.16bil, driven by higher revenue from other telecommunication services which includes business process outsourcing as well as higher revenue from Internet and multimedia. In addition, TM’s global wholesale segment also registered a 6.7% yoy increase in revenue to RM552.1mil for the first quarter, mainly contributed by higher data revenue and other telecommunication services and partially offset by decline in voice.
Moving forward, the telecommunications services provider foresees the outlook for the months ahead to remain positive.
“With the first quarter of 2017 past us, TM will continue with action plans put in place, leveraging on the strategic investments we made to realise our Convergence and “Go Digital” aspirations as we move beyond connectivity into quad play, and new value added digital and smart services.
“As Malaysia’s Convergence Champion, we will continue to offer relevant convergence propositions via the five pillars of Smarter Living, Smarter Businesses, Smarter Cities, Smarter Communities and a Smarter Nation that will cater to individual lifestyle and businesses alike,” it said.
No dividend was announced by TM for the first quarter of financial year 2017.
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