TM rings up higher quarterly net profit

Commenting on the results, TM group chief executive officer Imri Mokhtar (pic) said TM’s efforts in cost optimisation continue to yield results with a healthy Ebit and strong Patami.

PETALING JAYA: Telekom Malaysia Bhd’s (TM) net profit for its third quarter ended Sept 30, rose 26% to RM329.40mil from RM261.31mil in the previous corresponding period, due to lower direct costs and higher other operating and investment income.

Revenue in the third quarter stood at RM2.69bil compared with RM2.85bil in the previous corresponding period, it said in a filing with Bursa Malaysia yesterday.

“Despite these unprecedented times, TM group revenue continues to increase quarter-on-quarter, recording a resilient 3.8% growth to RM2.69bil from RM2.59bil recorded in the second quarter of 2020, on the back of higher revenue from voice, Internet and data services.”

TM said group earnings before interest and taxes (Ebit) for the third quarter of 2020 increased by 7% quarter-on-quarter to RM456.2mil from RM426.3mil in the second quarter of this year, on the back of lower operating cost.

“This subsequently led to a 19.9% increase in group profit after tax and minority interests (Patami) from RM274.7mil in the preceding quarter to RM329.5mil.

“In the third quarter of 2020, the company invested 14.9% of revenue in capital expenditure amounting to RM400mil, in line with guidance, as it continued to optimise its network and sweat its assets.

“Of the amount invested, 50% was for network access, 17% for core network, and the balance 33% for support system, ” it said.

For the nine-month ended Sept 30, TM’s net profit grew to RM756.67mil from RM683.77mil in the previous corresponding period, while revenue stood at RM7.84bil compared with RM8.40bil a year earlier.

Commenting on the results, TM group chief executive officer Imri Mokhtar said TM’s efforts in cost optimisation continue to yield results with a healthy Ebit and strong Patami.

“We are seeing Unifi gaining momentum, posting a 6.3% growth to 1.65 million subscribers, with our total broadband customer base now at 2.26 million. We achieved the highest convergence penetration (of three services or more) in TM households since 2018, of 58%, as more Malaysians embrace digital living-working in this new norm.

“On the wholesale front, we continue to collaborate with industry players in Malaysia and globally.”

On its prospects going forward, TM said the government’s introduction of Jendela in September 2020, as well as the RM7.4bil allocations in Budget 2021 to deliver upgraded broadband services for year 2021 and 2022, will serve as a platform to accelerate Malaysia’s digital connectivity through wider deployment of mobile, fibre and fixed wireless access.

“This will pave the way for 5G under the 12th Malaysia Plan (2021–2025).”

TM added that it is at the forefront in collaborating with other service providers, enabling and delivering Jendela.

“We continue to seek opportunities to cater for future demand of connectivity, in line with our proven commitment to maintain business profitability whilst adapting to and exploring new norms and avenues from this dynamic circumstances that the nation faces today.”

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