KUALA LUMPUR: Telekom Malaysia posted net profit of RM261.30mil in the third quarter ended Sept 30,2019, in stark contrast with net loss of RM175.59mil a year ago due to lower operating costs.
It announced to Bursa Malaysia on Tuesday that depreciation, impairments and amortisation declined to RM572mil from RM1.573bil a year ago.
TM said its revenue dipped by 3.2% to RM2.85bil compared with RM2.94bil a year ago due to decline in voice, Internet and multimedia services, as well as other telecommunication related services. Earnings per share were 6.95 sen compared with loss per share of 4.67 sen a year ago.
“Ongoing cost optimisation has resulted to higher operating profits before finance cost, a 230.5% (RM737mil) increase to RM417.2mil from the operating loss of RM319.8mil in 3Q 2018 which included impairment loss on network assets.
“Correspondingly, group profit after tax and non-controlling interests (PATAMI) increased by 248.8% (RM436.9mil) from a loss of RM175.6mil to a profit of RM261.3mil, ” it said.
As for unifi, revenue decreased by 10.9% (RM144.4mil) from RM1.33bil to RM1.18bil in the current quarter due to reduction from voice and Internet and multimedia services partly from the impact of the Streamyx price adjustment which took effect in September 2019 onwards as part of TM’s commitment to its loyal customers.
At RM79.8mil, unifi recorded an increase in EBIT compared to a loss of RM784.9mil in the corresponding quarter last year which included impairment losses recognised on network assets.
TM ONE recorded 4.3% (RM48.6 million) decline in revenue from RM1.12bil to RM1.07bil in 3Q FY19 mainly due to decline in data and other telecommunication related services.
Consequently, EBIT decreased 7.7% (RM23.4mil) to RM282.4mil in the current quarter from RM305.8 mil a year ago.
Revenue for 3Q FY19 rose by 6.5% (RM35.7mil) from RM549.3mil in 3Q FY18 to RM585mil mainly contributed by data services. Consistently, EBIT for 3Q FY19 was RM79.9mil, a 484.1% (RM100.7milI increase from a loss of RM20.8mil in 3Q FY18 which included impairment losses recognised on certain network assets.
Nine months performance ended Sept 30,2019
For the nine months ended Sept 30,2019, TM said it registered net profit of RM683.77mil compared with RM83.49mil in the previous corresponding period.
Its revenue dipped by 3.8% to RM8.40bil from RM8.73bil -- in line with guidance- mainly due to lower contribution from all lines of products except data and non-telecommunication related services.
Earnings before interest and tax (EBIT) for the nine months increased to RM1.20bil, from loss before interest and tax (LBIT) of RM187.3mi a year ago on the back of lower operating cost, from the Group’s various cost optimisation initiatives.
Profit after tax and non-controlling Interests (PATAMI) showed significant improvement with a 718.9% growth year-to-date to RM683.8mil, from RM83.5mil a year ago.
Stripping off non-operational items, normalised PATAMI stood at RM810.9mil, higher by 53.7% against the same period last year.
TM said total capital expenditure was within guidance at 8.8% of revenue or RM736mil.
Out of the amount spent, 16% was made for core network, 58% for access and the balance 26% was for support system.
TM group CEO Datuk Noor Kamarul Anuar Nuruddin said overall, in 3Q 2019 it saw continued improvements in the group's fundamentals.
“I’m pleased to report that our cost management initiatives under our performance improvement plan carried out since last year continues to yield results with profitability improvement.
“We have managed to keep a closer eye on our operational efficiencies to deliver sustained profitability with lower YTD OPEX/revenue. However, in line with sector contraction, our revenue challenges still persist on the retail front, in line with our expectations and 2019 market guidance.
“Our capex for YTD September 2019 is well within guidance, totalling 8.8% of revenue, and on track as we continue our targeted investments to ensure we deliver better service experience for all our customers, ” he said.
Noor Kamarul said TM continues to offer attractive unifi products and promotions to acquire more customers, whilst addressing Streamyx customers and coverage pain points with price adjustments and our wireless offerings.
He said over the last three months, we have expressed our intention to be the key driver for Malaysia’s Digital Nation aspirations.
“TM is ready to propel the nation into Industrial Revolution 4.0 (IR4.0) with our proposal to be the nation’s infrastructure provider in both the fixed and mobile space.
“This commitment is reinforced with our participation in the 5G demonstration projects and our preliminary moves toward building infrastructure readiness. In the next few months, we will be showcasing our 5G use cases in SS15, Subang Jaya, Selangor and Langkawi, Kedah in collaboration with local municipal councils and other potential partners.
“The use cases will cover Big Data Analytics, Smart City, Smart Tourism and Smart Agriculture clusters. The deployment of our tested and proven 5G-enabled smart solutions for the showcase are testament of our commitment in humanising technology towards making life easier, and enriching the quality of life for all Malaysians, ” he said.