Telekom Malaysia Q2 net profit up 12% to RM114m on lower costs


TM Global's revenue increased by 18.2% to RM602.5mil from RM509.6mil a year ago mainly contributed by data services.

KUALA LUMPUR: Telekom Malaysia Bhd's net profit rose by 12% to RM114.18mil in the second quarter ended June 30, 2019 (Q2FY19) from RM101.93mil a year ago as lower operating costs offset a decline in revenue and impairment losses.

It announced on Wednesday its revenue declined by 5.7% to RM2.76bil from RM2.93bil a year ago due to decline in voice, Internet and multimedia services, other telecommunication related as well as non-telecommunication related services.

Earnings per share were 3.04 sen compared with 2.71 sen.

However, operating profit before finance cost increased by 6.8% (RM16.8mil) to RM265.5mil from RM248.7mil a year ago due to reduction in operating costs from the continuing impact of the Group’s various cost initiatives. This was notwithstanding the revenue reduction and impairment loss on network assets recognised during Q2 FY19.

Commenting on unifi, it said revenue fell by 10.7% in Q2FY19 to RM1.204bil from RM1.349bil a year ago mainly due to lower revenue from Internet and multimedia services as an impact from the lower cumulative customer base for Streamyx and unifi broadband services.

However, earnings before interest and tax (EBIT) increased to RM55.7mil from RM37.9mil a year ago mainly due to lower operating costs.

As for TM One, its revenue declined by 8.4% to RM1.045bil in Q2FY19 from RM1.140bil mainly due to decline in voice and other telecommunication related services. Consequently, EBIT decreased 3.6% to RM253.6mil in Q2FY19 from RM263.1mil.

TM Global's revenue increased by 18.2% to RM602.5mil from RM509.6mil a year ago mainly contributed by data services. EBIT for the current quarter surged by 1,416% to RM101.6mil from RM6.7mil.

For the first half, its net profit rose by 63% to RM422.46mil from RM259.08mil despite a dip in revenue of 4% to RM5.47bil from RM5.78bil.

Telekom said the earnings were mainly due to lower revenue from all lines of product except for data services.

Despite the decrease in revenue and impairment loss on network assets recognised, its operating profit before finance cost increased by 74.2% to RM771.1mill from RM442.6mil. The main factors were lower operating costs resulting from the group’s various cost initiatives.

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unfi , streamyx , operating costs , TM One , TM Global

   

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