TM 2Q net profit more than doubles

KUALA LUMPUR: Telekom Malaysia Bhd’s (TM) net profit for the second quarter ended June 30, 2020 more than doubled to RM274.74mil from RM114.18mil due to the absence of impairment losses on fixed network assets last year.

Revenue, however, declined 6.4% to RM2.59bil against RM2.76bil recorded in the same quarter last year with decline in revenue for all lines of products except for data services reflective of impact from Streamyx price adjustments effective from September of the previous financial year as well as impact from lower volume and restricted economic activities during the Movement Control Order (MCO).

The telco group has declared a maximum Interim dividend of 6.8 sen per share totalling RM256.1mil.

During the quarter, TM’s unifi customer base grew 4.0% to 1.55 million while total fixed broadband customer base grew to 2.23 million.

In the first half to June 30, TM posted a net profit of RM427.26mil, up 1.1% from RM422.46mil. Revenue for the period fell 7.2% to RM5.14bil against RM5.54bil in the same period last year.

In the first half of 2020, TM invested 9.3% of revenue for capex amounting to RM479.2mil in-line with guidance - focusing on broadband, data and mobile services to maintain service quality and availability nationwide. Of the amount invested, 59% was for network access, 23% for core network, and the balance 18% for support systems.

In a statement Thursday, group CEO Imri Mokhtar said the group will continue to actively evaluate various ways to meet its performance targets whilst optimising costs and capex across its operations.

“We have started to arrest the decline and we are positive that our cost optimisation initiatives will continue to bear fruit, translating into positive margins for the group,” he said.

He added that TM has fully resumed all its business operations and on ground sales activities.

“Our unifi subscribers recorded positive growth from more Malaysians working from home whilst TM Wholesale continues to see higher international and domestic revenue.

“TM ONE further cemented its leadership position with our end-to-end cloud offerings. In the meantime, we remain well positioned to lead in the Industrial Revolution 4.0 (IR4.0) towards enabling a more Digital Malaysia,” Imri said.

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