TM RINGS UP RM157m NET PROFIT IN Q1
Results slip 31.8pc on decline in voice, data and other related services
ADECLINE in voice, data and other telecommunication-related services dragged on Telekom Malaysia Bhd’s (TM) earnings for the first quarter ended March 31 this year.
TM’s net profit decreased 31.8 per cent to RM157.16 million from RM230.43 million recorded in the same quarter last year while revenue eased 3.9 per cent to RM2.85 billion compared with RM2.96 billion previously.
This is despite a higher foreign exchange gain on TM’s borrowings recorded in the first quarter compared with the corresponding period last year, TM’s filing with Bursa Malaysia showed.
Group chief executive officer Datuk Seri Mohammed Shazalli Ramly said TM saw challenges across all its customer clusters in the first quarter which affected its performance.
While the group saw declining numbers on the total fixed broadband customer base due to the drop in the number of pre-unifi (formerly known as Streamyx) customers, it was seeing steady quarterly growth of 4.5 per cent for unifi, said Shazalli.
As of March 31 this year, unifi had 1.18 million customers while unifi Mobile achieved a 10 per cent household penetration.
In the quarter under review, TM spent RM327.4 million in capital expenditure (capex), which represented 11.5 per cent of its revenue, mostly on major projects, such as High Speed Broadband, Sub-Urban Broadband and expansion of LTE footprint.
Of the capex, 65 per cent was spent on access, 17 per cent on core network and 18 per cent on support systems.
Shazalli said this year, the group would remain guided by two key strategic thrusts — to accelerate convergence and empower digital via its PERFEXE 10 approach.
“This will enable us to further accelerate broadband connectivity, convergence and digital economy. We will continue with our investment for long-term growth in line with our expansion plans but will also ensure that we fully sweat our existing assets.
“A multitude of exciting initiatives have been planned for this year. So our customers can look forward to more experiences in perfect oneness, only with unifi,” he said.
Shazalli said the two strategic thrusts would remain relevant going forward.
“Guided by our PERFEXE 10 execution plan, we have prioritised group-wide initiatives to be more focused on delivering results faster in light of the current challenging market landscape,” he added.