KUALA LUMPUR: Telekom Malaysia’s earnings fell 20% to RM240.88mil in the third quarter ended Sept 30, 2013 from RM301.41mil a year ago mainly due to foreign exchange loss on translation of foreign currency borrowings.
It said on Thursday normalised net profit excluding unrealized foreign exchange loss and higher tax expense, rose 32.4% on-year to RM270.3mil from RM204.1mil last year.
TM pointed out there was a forex loss of RM43.80mil compared with a gain of RM64.80mil a year ago due to the strengthening US dollar against Ringgit. In addition, deferred tax income on unutilised tax incentives in the current quarter was also lower.
Revenue rose 9.9% to RM2.610bil from RM2.375bil due to higher revenue contribution from Internet and data services.
“TM continued to sustain Internet and multimedia services growth with 14.1% higher revenue on-year to RM685.4mil in the current year quarter mainly arising from increased UniFi customers and content revenue.
“Data services also recorded 17.0% increase on-year to RM635.0mil in the current year quarter in line with higher bandwidth demand,” it said.
TM said group reported operating profit (earnings before interest and tax ) jumped 64.7% on-year to RM364.9mil from RM221.6mil due to to higher revenue and lower operating cost. Earnings per share were 6.73 sen compared with 8.4 sen.
Elaborating on the third quarter results, TM group chief executive officer Tan Sri Zamzamzairani Mohd Isa Group said: "We’re happy that TM continues to show progress, producing another good set of results all around.”
“Cost as a percentage of revenue also improved from 89.1% to 87.2% in year-to-date Sept 30, 2013. In terms of capex efficiency, we continued to manage our capex prudently and efficiently with our capex spend/revenue ratio improving from 19.8% in year-to-date Sept 30, 2012 to 14.5% this year,” he said.
Zamzamzairani said the take-up of its broadband products grew 7.7% on-year to 2.18 million customers in 3Q2013, with UniFi driving this growth.
As at end Sept 2013, TM rolled out the High Speed Broadband (HSBB) project to 1.462 million premises covering 103 exchanges nationwide.
“We closed the quarter with more than 607,000 UniFi customers – a net add of about 180,000 or 42.2% growth on-year. This translates to a take up rate of about 42%. To date, we have over 620,000 UniFi customers,” he said.
He added TM’s highspeed broadband Streamyx products offered in non-UniFi areas also recorded good take-up. To date, 39% or 841,000 of its total broadband customers were on high speed broadband packages (Streamyx 4Mbps and 8Mbps and UniFi).
For the nine months ended Sept 30, 2013, its earnings fell 25.8% to RM667.96mil from RM900.48mil primarily due to foreign exchange loss on borrowings of RM96.5mil as compared to a gain of RM68mil a year ago as well as lower deferred tax income on unutilised tax incentives.
Operating profit before finance cost of RM995.1mil was higher by 25.5% as compared to RM792.9mil a year ago mainly due to higher revenue.
TM’s revenue rose 6.4% to RM7.648bil from RM7.184bil, mainly from higher revenue from all key services, which mitigated the decline in voice revenue.