Telekom Malaysia Bhd Tan Sri Zamzamzairani.
KUALA LUMPUR: Telekom Malaysia Bhd
posted earnings of RM139.45mil in the second quarter ended June 30, 2016 from a year ago due to lower operating profit, higher finance cost and foreign exchange losses.
It said on Tuesday the earnings were down 34.2% from RM212.06mil a year ago. Earnings per share were 3.71 sen compared with 5.69 sen. It declared a single-tier interim dividend of 9.3 sen per share or RM349.5mil.
TM's revenue rose 7.2% to RM3.04bil from RM2.84bil a year ago mainly due to higher revenue from Internet and multimedia, data, other telecommunications related services and non-telecommunications related services.
It said Internet and multimedia services revenue rose 8.9% to RM904.9mil in Q2 FY16 from RM831.2mil a year ago mainly due to increase in UniFi customer base of 900,245 at the end of Q2 from 782,573 a year ago.
Operating profit before finance cost fell RM24.7mil or 8.1% to RM280mil from RM304.7mil a year ago due to higher operating costs mainly from accelerated depreciation and write-off of WiMAX assets of Webe.
For the first half, its earnings rose 37.6% to RM461.88mil from RM340.98mil while its revenue increased 5.1% to RM5.90bil from RM5.61bil a year ago.
TM said its group operating profit (earnings before interest and tax) increased by 2.2% on-year to RM561.0mil while group profit before tax grew 37.6% to RM589.1mil.
The telco giant said it maintained its leadership position in broadband; evolving to become Malaysia’s Convergence Champion
Overall Broadband customer base grew 3.4% on-year to 2.37 million, driven by UniFi. UniFi take-up remained strong with over 900,000 customers as at June 30, 2016.
“The total capital expenditure (capex) for 1H2016 was RM938.5mil or 15.9% of revenue. Of the total spent, 45% is for access, 32% is for core network, and 23% for support systems. TM has earlier announced its capex guidance for the year to be at 25%-30% of revenue excluding webe,” it said.
TM group CEO Tan Sri Zamzamzairani Mohd Isa said: “The first half of 2016 has been encouraging despite an overall challenging environment. We recorded Group Revenue of RM5.9 billion, an increase of 5.1% against the corresponding period last year.
“We maintained our leadership position in the broadband space with a 3.4% YoY increase in total broadband customer base to 2.37 million customers.
“UniFi continues to see a healthy growth, with a net addition of about 118,000 customers to over 900,000 customers as at 2Q2016. I’m very happy to note that more than 60% of our broadband customers are now on packages of 4Mbps and above while approximately 68% of our UniFi customers are on packages of 10Mbps and above.”
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