Telekom posts pre-tax profit of RM456mil for Q3


  • Business
  • Saturday, 22 Nov 2003

By B.K. SIDHU

Telekom Malaysia Bhd reported yesterday that higher sales from cellular, data, Internet and multimedia services had offset falling fixed-line sales and helped boost its group pre-tax profit for the third quarter ended Sept 30 to RM456mil, up 10.3% from the RM413mil profit reported in the corresponding quarter last year. 

Group revenue for the latest quarter was 32% higher at RM3.3bil compared with RM2.4bil a year ago, while net profit increased to RM333mil from RM227mil. 

Earnings per share rose to 10.40 sen from 7.20 sen a year ago. 

Telekom told the KLSE in a statement the significant increase in cellular revenue for the quarter was due mainly to the consolidation of Celcom (M) Bhd. 

Celcom posted a revenue of RM1bil for the third quarter compared with RM919mil in the second quarter. Profit for the third quarter increased 51% to RM77.6mil from RM51.4mil in the last quarter. Celcom's customer base grew by 155,000 in the third quarter, driven largely by the prepaid segment. 

“We are happy to report that the Celcom integration with TM Cellular is on track and we are already seeing the benefits of the merger in its operations, service coverage and customer services as well as enhanced revenue streams,'' said Telekom chief executive Datuk Dr Md Khir Abdul Rahman. 

Telekom, whose customer base for Internet services reached 1.6 million during the third quarter, said demand for its broadband service had not abated and was expected to increase following a 30% cut in prices. 

For the nine months ended Sept 30, Telekom reported a slight increase in pre-tax profit to RM1.29bil from RM1.28bil in the corresponding period a year ago. 

Group revenue rose18% to RM8.6bil from RM7.3bil, while net profit was 20% higher at RM890mil versus RM741mil previously. 

Earnings per share rose to 28 sen from 23.50 sen a year ago. 

Telekom said it had proved to be resilient against a second quarter backdrop of global uncertainties linked to terrorism, war, unstable financial markets and the SARS outbreak. 

“We continue to forge ahead with our strategic initiatives in the key growth areas of cellular, data, broadband and multimedia,’’ it added. 

Telekom said that given the fact the domestic economy was showing better-than-expected gross domestic product (GDP) growth, and with a rebound in regional economies, it would continue to achieve business expansion and growth in its core activities. 

“Barring unforeseen circumstances, the group would achieve satisfactory results for this financial year,’’ it added. 

No interim dividend was declared for the period under review. 

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