TM Q1 profit down


  • Business
  • Thursday, 26 May 2011

KUALA LUMPUR: Telekom Malaysia Bhd's (TM) net profit for its first quarter ended March 31 (Q1FY11) was down 32.8% to RM163.3mil from a year ago mainly due to lower unrealised exchange gains on translation of foreign currency borrowings.

But the revenue for the quarter under review recorded a 1.1% growth to RM2.15bil year-on-year (y-o-y), mainly attributed to higher revenue from data, Internet and multimedia services, which when combined contributed 57% of the group's total revenue for the quarter.

Earnings per share was down to 4.6 sen for the quarter from 6.9 sen a year ago.

Boosted by higher revenue and lower tax expense, normalised profit after tax and minority interest was up 40.3% y-o-y to RM122.3mil.

Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 1.5% to RM730.9mil compared with same quarter last year.

Group chief executive officer Datuk Seri Zamzamzairani Mohd Isa (pic) said the company was making steady progress in all aspects of performance and operations despite the competitive market environment.

“We again returned a strong normalised EBITDA margin of 33.6% as a result of increasing revenue and controlled spending. In the first quarter, we continue to witness data and Internet driving our revenue.

“The mix of voice to non-voice revenue continues to change with voice now contributing 43.0% of revenue, while non-voice contributed 57% collectively,” he said in a statement yesterday.

Segmentally, data revenue increased by 6.8% in Q1FY11 to RM424.6mil compared with the corresponding quarter in 2010 arising from demand for higher bandwidth services.

Internet and multimedia services turned in higher revenue by 12.7% to RM453.4mil in the quarter under review.

However, other telecommunications services recorded a decrease of 3% to RM346.1mil Q1FY11 from a year ago.

On operational performance, Zamzamzairani said it reflected TM's market leadership, growing data services, Internet and multimedia business, and prudent cost management.

“Internet continues to be a strong revenue driver for TM with continuous growth in our Streamyx customer base with over 28,000 net additions in Q1FY11.

“In addition, UniFi has also been successfully rolled out to 808,000 premises ... UniFi demand has also been very strong since its launch last year,” he said.

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