TM on track to achieve 2022 market guidance

Telekom Malaysia group chief executive officer Imri Mokhtar

KUALA LUMPUR: Telekom Malaysia Bhd (TM) is on track to achieve its 2022 market guidance based on its current performance momentum.

“Progressing further in 2022, TM will continue to power a digital nation by delivering customer experience, solutions, and connectivity excellence through delivery from its core execution engine; the employees or ‘Warga TM” towards a more Digital Malaysia,” the telco said in a filing with Bursa Malaysia.

In the second quarter ended June 30 (2Q), TM’s net profit surged 73% to RM378.06mil, or 10.02 sen earnings per share, against RM218.59mil, or 5.79 sen a year ago.

The telco said the improved performance was on the back of accelerated demand for connectivity, services, and digital solutions. TM applied the 33% Cukai Makmur statutory tax rate accordingly for the current quarter.

Revenue for the quarter rose 11.8% to RM3.09bil against RM2.76bil previously with an increase in revenue from all lines of services, particularly data and Internet services.

TM’s optimisation efforts have enabled it to record lower manpower and other operating expenditure costs, which led to higher earnings before interest and taxation (EBIT), up 81.3% at RM702.7mil compared to RM387.6mil YoY.

TM has declared an interim dividend of 9.0 sen per share in line with its policy to distribute yearly dividends of 40%-60% from its profit after tax and minority interest (Patami).

The dividend reinvestment scheme applicable (DRS) is applicable for this dividend tranche to provide flexibility to shareholders, enabling participation in the group’s continuous growth momentum.

TM said unifi recorded a 10.3% revenue increase from RM1.27bil to RM1.4bil in the current quarter, driven primarily by the continuous growth of fixed broadband subscribers, which recorded a 14.1% increase from the same quarter last year.

The group’s enterprise and public sector arm, TM One, recorded an increase in revenue of 4.1%YoY to RM854.6mil, with growth from recurring business across the enterprise and government sectors.

Global supply chain challenges and delays, however, continued to impact its operations and subsequent delivery of several customer projects.

In the first half to June 30, TM posted a net profit of RM717.9mil on revenue of RM5.98bil.

Group chief executive officer Imri Mokhtar said its financial performance and results demonstrated TM’s ability to manage its business effectively despite the headwinds arising from a challenging and competitive business environment.

“These results are also a powerful testament to our transformation journey, and our commitment to deliver sustainable and inclusive Digital Malaysia.

“unifi will continue its trajectory to provide converged solutions to both residential and SME customers. unifi Business, specifically, will double down on its efforts to provide new propositions to engage SME customers including promotional campaigns and financing options,” he said.

“Looking ahead, 5G will level the playing field and move the industry away from network-based to service-based competition. TM welcomes the Government’s call for the industry to take up equity stakes in DNB.

“5G will open up and expand opportunities and growth areas for all of TM’s business segments –consumers, SMEs, enterprises, wholesale as well as digital services. We look forward to rolling out 5G-enabled products and solutions and unlocking the value to meet customer demands.

“As Malaysia’sconvergence champion, we believe 5G will strengthen our convergence proposition, and our customers will be encouraged to transition to 5G in the near term.

“Ultimately, TM’s growth and differentiation, whether in 5G, fixed broadband or digitalisation, will hinge on creating and offering exceptional customer experience, as we continue on our evolution towards becoming a human-centered technology company,” Imri said.