TM 2Q net profit down 20%, declares cash dividend of 7 sen

By S BIRRUNTHA / Pic by TMR FILE PIX

Telekom Malaysia Bhd’s (TM) net profit declined 20.4% in the second quarter ended June 30, 2021 (2Q21) to RM218.59 million from RM274.74 million a year ago.

The group attributed the lower earnings to a RM3.1 million foreign exchange loss on borrowings in the current quarter compared to a RM19.2 million gain in corresponding quarter last year, according to its exchange filing on Bursa Malaysia today.

Earnings per share (EPS) for the quarter decreased to 5.79 sen compared to 7.30 sen a year ago.

However, quarterly revenue increased 6.6% to RM2.76 billion from RM2.59 billion previously, supported by the increase in revenue for all services apart from non-telecommunication related services.

The group reported operating profits before finance cost of RM382 million, 8.6% lower from the RM418 million a year earlier mainly from increase in operating costs which included provisions recognised as part of the group’s manpower optimisation initiatives.  

TM has declared an interim single-tier cash dividend of 7.0 sen per share for the financial year ending Dec 31 (FY21).

The proposed dividend will be paid on Sept 30 to shareholders and the entitlement date is on Sept 14.

For the first six months to June 30 (1H21), TM’s net profit rose 27.3% to RM544 million from RM427.26 million a year ago, while revenue increased to RM5.57 billion compared to RM5.14 billion previously.

On segmental performance,  unifi recorded a 9.9% increase in revenue to RM2.46 billion in 1H21 from RM2.24 billion in 1H20, mainly from Internet and multimedia services as well as voice with the highest increase in broadband subscribers recorded over the last six months.  

TM ONE recorded a 2.5% increase in revenue from RM1.88 billion to RM1.93 billion in the current financial period contributed by data and customer projects under other telecommunication related services amidst decline in usage-based revenue from voice as well as internet which were affected by bandwidth downgrade and lower usage during the extended Movement Control Order (MCO) period.  

Meanwhile, TM Wholesale registered revenue of RM1.22 billion for the current financial period, 18.7% higher than the RM1.02 billion reported in the corresponding six months period a year ago.

TM MD and group CEO Imri Mokhtar said TM has recorded a solid performance in 1H21 and the group is on track to meet its 2021 targets in line with market guidance.  

He noted that coming off an exceptional first quarter, the group has recorded notable improvements in its 1H21 revenue and profitability against the same period last year.  

“This was driven by higher revenue achieved by all of our customer segments – unifi, TM ONE and TM Wholesale and better cost efficiency.  

“The current nationwide MCO has certainly influenced our business landscape and customer operations, but we are delighted with the momentum of our value programmes and the commitment of our frontliners,” he said in a separate statement.  

According to Imri, TM remains steadfast in its drive to realise the Digital Malaysia aspiration and the group is making solid progress and gaining good traction with its ‘New TM’ Transformation Program (2021-2023).

He added that based on the current momentum, the group is on track to achieve our 2021 targets and market guidance.