webe costs seen weighing on Telekom Malaysia

Incumbent fixed operator, Telekom Malaysia Bhd's entry into 4G market may put more pressure on mobile phone operators.

PETALING JAYA: While posting results for the financial year ended Dec 31, 2016 (FY16) that were largely within market expectations, Telekom Malaysia Bhd’s (TM) financial performance for this year may be weighed by continued costs stemming from the company’s digital mobility services provider, webe.

Analysts said the company expects flat earnings before tax, interest, depreciation and amortisation (Ebitda) for FY17 due to increased marketing and operating expenditure relating to the full year operation of webe, as well as higher customer project costs.