KUALA LUMPUR — Telekom Malaysia Bhd (TM) has recorded one of its highest net profit in the past 12 years, posting RM568.74 million for its second quarter (Q2) ending June 30, 2023.
TM had posted its highest net profit of RM598.3 million during its fourth quarter of 2011.
The telecommunications giant posted a revenue of RM3.10 billion, which is a 0.3% growth since last year, thanks to the expansion and increase in subscribers of its internet service provider business, Unifi.
For reference, TM’s revenue grew from RM2.76 billion to RM3.09 billion (11.8%) in 2022, with a revenue increase from all service lines, especially in its data and internet services.
Meanwhile, TM also saw a boost in its Profit After Tax and Non-Controlling Interest (PATAMI), which rose from RM378 million to RM568.7 million, equivalent to a 50.4% growth.
It also declared a higher Interim Dividend, with each share valued at 9.5 sen. The value is recognised as an indication of the company’s positive financial performance.
However, TM recorded a reduction of 10.3% for its Earnings Before Interest and Tax (EBIT), having dropped from RM702.7 million to RM630 million due to higher preventive maintenance costs and depreciation from revisions of asset useful life.
Nonetheless, TM group chief executive officer Amar Huzaimi Md Deris said most of its businesses saw an increase in revenue this year, including Unifi and TM Global.
“Unifi’s revenue increased to RM1.41 billion (0.5%), which was due to the growth in broadband subscribers from its consumer and micro, small, and medium enterprise (MSME) segments.”
“Similarly, TM Global attributed its 10% revenue growth – from RM739.9 million to RM813.6 million – to the increased demand for its data services, both domestically and internationally,” he said.
On the flip side, TM One saw a revenue decline of 11.4% due to price reductions in connectivity services, as well as lower one-off revenue from customer projects.
As such, it aims to drive rapid development of solutions for verticals – including smart cities, healthcare, agriculture, and industries – to mitigate the decline.
It will also lead private 5G propositions and solutions across industries such as oil and gas, transportation hubs, and manufacturing. — August 25, 2023