TM net profit more than doubles in 1Q


KUALA LUMPUR: Telekom Malaysia Bhd’s net profit in the first quarter ended March 31 (1Q21) more than doubled to RM325.45mil from RM152.52mil in the same quarter a year ago.

The telco group’s operating revenue increased by 9.9% to RM2.8bil compared to RM2.55bil in the same quarter last year with increase in revenue for all services apart from other telecommunication services.

This led to TM recording 81.4% increase in operating profits before finance cost of RM583.3mil, from RM321.6mil recorded in 1Q20 on the back of operating costs that have been sustained at the same level recorded in the comparative quarter.

In a statement, managing director and group CEO Imri Mokhtar said TM began 2021 with a positive momentum and a strong start to its ‘New TM’ 2021-2023 Transformation Programme.

“We delivered good growth with our revenue up 9.9% year-on-year to RM2.81bil, contributed by strong demand from our unifi, TM ONE and TM Wholesale customers.

“Coupled with our continuous cost efficiency initiatives, earnings before interest and tax (EBIT) significantly improved 80.8% year-on-year to RM589.7mil and profit after tax and non-controlling interests doubled to RM325.5mil as compared to the first quarter of 2020,” he said.

TM said it invested 8.8% of revenue in capital expenditure (capex) amounting to RM247mil in 1Q21 as it continued to modernise its network and technology platforms towards delivering current and future solutions for customers.

Of the amount invested, 69% was for network access including JENDELA (fibre broadband expansion), 12% for core network, and the balance 19% for support systems.

“TM expects to meet the 2021 market guidance announced in February with revenue growth to be flat or single digit growth, earnings before interest and tax (EBIT) to be more than RM1.6bil and capital expenditure guidance to be between 14% to 18% of revenue,” it said.

In 1Q21, Unifi’s revenue increased 7.5% from RM1.1bil to RM1.2bil for both fixed broadband and mobile services, with cumulative fixed internet subscribers increasing in the current quarter against the corresponding quarter last year.

TM ONE recorded a 2.2% increase in revenue from RM960mil to RM981.3mil in 1Q21 mainly contributed by data and other telecommunication services, net of lower internet and voice revenue which were affected by lower usage during the extended Movement Control Order period.

TM said the higher direct cost on customer projects and other operating costs in the current quarter however brought EBIT down by 6.1% to RM266.1mil from RM283.3mil in the corresponding quarter last year.

Imri said under the 40+ Value Programmes, TM was reshaping its workforce into a stronger execution engine, embracing a more agile work culture with future-ready skills; focused on growing with our customers towards a more digital society, businesses, public sector services and technology industry.

“We are also committed towards sustainable growth, with increased emphasis on ESGby our Board and management. We remain focused on our ESG sustainability journey.

“I am pleased to update that we maintained our track record as one of the 75 Bursa companies on the FTSE4Good Bursa Malaysia Index, with a full rating of 4/4,” Imri said.

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