TM’s profit nearly doubles to RM308m in 1Q19

According to the group, the increase in profit was achieved despite a revenue drop

By RAHIMI YUNUS / Pic By ISMAIL CHE RUS

TELEKOM Malaysia Bhd’s (TM) net profit almost doubled to RM308 million in the first quarter ended March 31, 2019 (1Q19), as a result of the group’s operational cost reduction.

The increase in net profit was achieved despite a revenue drop. The group’s top line fell 2.4% year-on-year to RM2.78 billion from RM2.84 billion recorded last year due to a decline invoice, Internet and multimedia services and non-telecommunications related services revenue.

TM said in an exchange filing yesterday that revenue challenges continued to persist into 1Q19 as expected, with intensifying competition and price erosion.

“We recorded improved operational efficiency and increased profitability.

“Our operating expenditure/ revenue also improved by 11.4%, while profit for the quarter also doubled — mainly from the cost optimisation efforts undertaken to counter revenue decline,” acting group CEO Imri Mokhtar (picture) said in a statement yesterday.

TM’s Unifi segment saw its revenue decrease by 9.3% from RM1.35 billion in 1Q18 to RM1.23 billion on lower revenue from voice services following dwindling usage.

“We expect the industry and competitive landscape to continuously evolve.

“We remain focused on delivering our strategies of accelerating convergence and empowering digital to enable a digital Malaysia, while we strengthen our resilience with our performance improvement programme initiatives and improve on customer experience,” Imri added.

He said capital expenditure in 1Q19 was lower compared to last year and within the company’s guidance — RM151 million or 5.4% of revenue — as TM continues to sweat its assets and optimise its network. The broadband service provider said convergence penetration for Unifi has increased to 56% of TM households.

It said Unifi now has a 2.19 million broadband customer base comprising 1.32 million Unifi and 871,000 Streamyx customers.