TM’s network handled 39% increase in overall traffic during MCO

Unifi’s customer base grew 4% to 1.55m, bringing the total fixed broadband customer base to 2.23m


TELEKOM Malaysia Bhd’s (TM) network remained stable during the Movement Control Order (MCO), handling a 39% increase of overall traffic following continuous network operation.

This is in spite of the telecommunications company seeing its unifi customer base grow 4% to 1.55 million, which brought the total fixed broadband customer base to 2.23 million as of June 30 this year.

“During the second-quarter (2Q) period, we have seen an increase just from the utilisation of our network traffic. It had grown close to 40% and in reference to the free 1GB from the short-term National Economic Recovery Plan, it is one of the usage profiles that we have seen that is very much intact to this,” TM group CEO Imri Mokhtar (picture; left) told reporters at the company’s 2Q financial results media briefing in Kuala Lumpur yesterday.

In the first half of the 2020, TM invested 9.3% of revenue for capital expenditure (capex) amounting to RM479.2 million — in line with guidance — focusing on broadband, data and mobile services to maintain service quality and availability nationwide.

Of the amount, 59% was for network access, 23% for core network and the balance 18% for support systems.

Imri, who was appointed group CEO last month, said TM has fully resumed business operations and on ground sales activities to provide quality service and experience for its customers.

“Our unifi subscribers recorded positive growth from more Malaysians working from home, while TM Wholesale continues to see higher international and domestic revenue,” he said.

TM’s earnings for 2Q ended June 30, 2020, jumped 140.62% year-on-year (YoY) to RM274.74 million due to lower operating cost and no impairment loss on fixed network assets were made.

Revenue for the quarter fell 6.5% YoY to RM2.59 billion due to a decline in revenue for all lines of products except data services reflective of impact from the Streamyx price adjustments effective September last year, as well as impact from lower volume and restricted economic activities during the MCO.

For the six cumulative months, TM net profit rose 1.14% YoY to RM427.27 million, while revenue dropped 7.18% YoY to RM5.5 billion.

TM declared an interim single tier dividend of 6.8 sen per share for the financial year ended Dec 31, 2020, payable on Oct 2, 2020.

TM’s shares closed 8.97% or 34 sen higher to RM4.13, valuing the company at RM15.58 billion.