KUALA LUMPUR: Telekom Malaysia Bhd's net profit surged over 300% to RM632.67mil in the financial year ended Dec 31,2019 on lower impairment losses and reduction in operating costs.
It said on Friday the earnings were 313% higher than the RM153.15mil in FY18.
However, group revenue fell by 3.3% to RM11.43bil from RM11.82bil in FY18, mainly due to lower revenue from all lines of product except for data and non-telecommunication related services.
“Operating profit before finance cost increased 246.1% to RM1.299bil from RM375.5mil in 2018 with lower impairment losses on network assets in the current financial year compared to what was recognised last year.
“The group’s ability to sustain a continuous reduction in operating costs further contributes to improved performance year on year, ” it said.
On the segment performance, it said unifi revenue for FY19 fell by 10.8% to RM4.74bil from RM5.32bil with lower revenue from voice, Internet and multimedia services, as well as other telecommunication related services.
The reduction in revenue from Internet and multimedia services was partly from the Streamyx price adjustments introduced in September 2019.
Telekom said earnings before interest and tax (Ebit) for FY19 increased by 145.7% to RM313.3mil from a loss of RM686.3mil last year which was mainly due to impairment losses on network assets recognised during the previous financial year.
As for TM ONE, it recorded a 4.7% decline in revenue from RM4.44bil to RM4.23bil in FY19 mainly due to decline in voice, data and other telecommunication related service revenues.
Consequently, EBIT for FY19 fell by 8% from RM1.08bil to RM995.1mil.
As for TM Global, its revenue increased by 18.8% to RM2.66bil from RM2.24bil in FY18.
“This was mainly driven by revenue increase in data services. Lower depreciation charges and impairment losses on network assets in FY19 compared to FY18 led to a 219.9% (RM472mil) increase at Ebit line from a loss of RM214.6mil in FY18 to RM257.4mil profit in FY19.
For the fourth quarter, it posted net losses of RM51.09mil compared with net profit of RM69.67mil a year ago mainly affected by a one-off RM233.7mil fair value adjustment recognised in 4Q on redeemable exchangeable MTNs issued by a non-controlling shareholder of a subsidiary.
Its revenue was lower at RM3.034bil compared with RM3.088bil a year ago.
Loss per share was 1.37 sen compared with earnings per share of 1.86 sen. It announced a dividend of 10 sen per share with two sen a year ago.
When compared with the third quarter, its revenue increased by 6.4% to RM3.034bil from RM2.852bil with higher revenue from data, voice, and other telecommunication services.
Operating profit before finance cost decreased by 73.3% to RM111.4mil from RM417.2mil in 3Q
Direct costs also increased with the increase in revenue during the current quarter. This led to a RM312.4mil decrease in group net profit from RM261.3mil profit in 3Q to a loss of RM51.1mil.