“For TM, 2017 is very much about accelerating its convergence action plans and pushing forward with our ‘Go Digital’ agenda. The group looks forward to continue its transformation journey towards becoming Malaysia’s convergence champion and will continue to be guided by its vision ‘To Make Life and Business Easier, for a Better Malaysia”,” TM said in a statement.
In the fourth quarter ended Dec 31, TM’s posted a higher revenue of RM3.24bil compared with RM3.18bil in the same period a year ago. Its net profit for the quarter was lower at RM154.3mil against RM192.4mil previously.TM said its 4Q2016 performance was impacted by higher unrealised foreign exchange loss, increased depreciation overall, including accelerated depreciation for WiMAX assets.
For the full financial year ended Dec 31, 2016 (FY16), TM’s net profit jumped 10.8% to RM776mil, or 20.65 sen earnings per share (EPS) compared with RM700.2mil, or 18.72 sen EPS. Its revenue for the period rose to RM12.06bil against RM11.72bil.
TM said it met all its headline key performance indicators (KPIs) for 2016. Performance was mainly driven by non-voice services, which now collectively represent 72% of group revenue.
In a statement, group CEO Tan Sri Zamzamzairani Mohd Isa said 2016 was both exciting and challenging for TM.
“Over the year, we saw an aggressive rollout of LTE and launched webe. As expected we saw increased expenditure in the last quarter as we kicked off the Year of Convergence,” he said in the statement.
“Overall, we had a solid FY16 performance with revenue growth seen across all customer clusters mainly driven by non-voice revenue. Our broadband customer base remains strong, led by UniFi. We closed the year with a wider HSBB footprint of 2.23 million ports nationwide, with an overall take up rate of 42.6%.
“As at Dec 31, 2016, we recorded a total broadband customer base of more than 2.37 million customers. On UniFi, we have more than 949,000 customers activated at 4Q2016. 79% of them were on the speed of 10Mbps and above. The strong take up of our higher value packages and more people buying content, as well as traction in upselling resulted in a strong ARPU trend,” he added.
Total capex spent for FY16 as a percentage of revenue was 27.5%, amounting to RM3.3bil due to its investments in preparation for future growth.
TM remains strong in its commitment of value creation to shareholders through sustainable return on capital.
In line with the group’s dividend policy, TM is declaring a second interim single-tier cash dividend of 12.2 sen per share or RM458.5mil for FY16. Together with the first interim dividend of 9.3 sen per share amounting to RM349.5mil, the total dividend payout is 21.5 sen per share, or RM808mil. The dividend will be paid on March 24, 2017.
TM shared its headline KPIs for 2017 and the mid-term target (2019) respectively. They are revenue growth of 3.5% to 4% in 2017, EBIT levels to be maintained at the same ringgit amount as at FY16 and customer satisfaction measure of 73.
For the mid-term, the headline KPI is revenue growth of 3.5% to 4%, EBIT growth of 3.5% to 4% and customer satisfaction measure of 73. The KPIs for the financial measures include webe, in line with TM’s convergence strategy and “Go Digital” aspiration.