KUALA LUMPUR: Telekom Malaysia Bhd’s net profit fell by nearly half in the first quarter ended March 31,2020, impacted by lower revenue for all lines of its products and it remained cautious due to the ongoing Covid-19 pandemic.
It reported on Wednesday its net profit fell by 50.5% to RM152.52mil from RM308.28mil. Its revenue slipped by 0.8% to RM2.55bil from RM2.77bil a year ago. EPS were 4.05 sen and 8.2 sen.
“The reduction in revenue, led to the group recording lower operating profits before finance cost of RM321.6mil, a 36.4% (RM184mil) decrease from RM505.6mil a year ago, ” it said.
It said its revenue for unifi fell by 8.4% (RM103.4mil) from RM1.23bil a year ago to RM1.12bil due to a reduction in voice services due to lower usage from decrease in cumulative customer base.
“Reduction in revenue from Internet and multimedia services was from the downward price adjustment exercise given to our Streamyx customers starting September 2019 onwards, as a reward for their loyalty, ” it said.
Hence, reduction in revenue and higher operating costs contributed to lower EBIT of RM84.1mil from RM203.1mil a year ago.
As for TM ONE, its revenue fell by a 4.6% (RM46.3mil) from RM1bil to RM960mil in 1Q 2020 mainly contributed by voice and data services, from lower cumulative customer base compared to a year ago.
However, EBIT rose by 7.5% (RM19.9mil) to RM283.8mil in 1Q 2020 from RM263.9mil a year ago mainly due to lower operating costs.
As for TM Wholesale, 1Q20 revenue fell by 11.9% (RM68.8mil) from RM578.1mil a year ago to RM509.3mil mainly due to lower revenue from voice services due to lower international traffic exchange compared to a year ago.
Operating cost fell largely due to lower voice outpayment. Hence, EBIT for 1Q 20 slipped 14.1% to RM99.9mil from RM116.3mil a year ago.
When compared with the 4Q 2019, Telekom said overall revenue in 1Q 20 fell 15.7% (RM477mil) to RM2.55bil from RM3.03bil with lower revenue from all lines of products except for Internet and multimedia services.
Its operating profit before finance cost however increased 188.7% (RM210.2mil) to RM321.6mil from RM111.4mil recorded in 4Q 2019.
In 4Q 2019, there was the recognition of a one-off fair value adjustment of RM233.7mil on redeemable exchangeable medium term notes issued by a non-controlling shareholder of a subsidiary.
“This subsequently led to a RM203.6mil increase in group PATAMI from a loss of RM51.1mil in the preceding quarter to a profit of RM152.5mil, ” it said.
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