Flat core net profit seen for TM in 1Q


However, its core earnings per share (EPS) is projected to remain steady year-on-year (y-o-y) at 32 sen for FY22, 45 sen for FY23 and 49 sen for FY24.

PETALING JAYA: Telekom Malaysia Bhd (TM) is expected to announce a flat core net profit for the first quarter of financial year 2022 (1QFY22), led by higher taxes, lower voice and data revenues and lumpy voluntary separation scheme (VSS) costs.

However, its core earnings per share (EPS) is projected to remain steady year-on-year (y-o-y) at 32 sen for FY22, 45 sen for FY23 and 49 sen for FY24.

The core net profit is expected to have declined 3%-6% quarter-on-quarter (q-o-q) to RM325mil-RM335mil on seasonally lower revenue, upfront/lumpy VSS cost and higher effective tax rate (Cukai Makmur), said CGS-CIMB Research.

It said the latter two factors, partially offset by lower net interest cost (sukuk buyback in mid-March 2021), could result in core net profit being flat to 2% lower y-o-y.

It added that 1QFY22 core EPS may form 27% to 28% of its FY22 forecast compared with 29%-30% of Bloomberg consensus, which would be largely in line as it expects operational expenditure and effective tax rate to be higher in the remaining quarters of FY22.

However, earnings before interest tax depreciation and amortisation margin is expected around 40%, which is still a steady figure q-o-q and y-o-y.

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