Internet and other services drive TM’s Q1 2015 revenue
By Digital News Asia June 1, 2015
- Overall broadband customer base grew 1.6% to 2.27mil, led by UniFi
- Profit Before Tax (PBT) down to RM172.1mil due to lower operating profits
TELEKOM Malaysia Bhd (TM) reported first-quarter revenue growth of 5.9% to RM2.77 billion (US$760 million) from RM2.62 billion in the corresponding period a year ago, mainly driven by higher contribution from its Internet and ‘Others’ services revenue.
For the period ending March 31, 2015, Group Operating Profit (Earnings Before Interest and Tax or EBIT) for Q1 2015 was RM243.4 million. Group Normalised EBIT stood at RM244 million on the back of higher operating cost, it said in a statement.
[RM1 = US$0.27]
Profit Before Tax (PBT) stood at RM172.1 million, compared with RM279.6 million in the corresponding period last year, which TM attributed to lower operating profits.
Profit After Tax And Minority Interest (PATAMI) was RM128.9 million in the current year quarter. Group Normalised PATAMI was lower by 7.6% at RM171.3 million due to higher operating costs and costs associated with the consolidation of P1.
TM noted that as of the fourth quarter of 2014, it has consolidated Packet One Networks (Malaysia) Sdn Bhd (P1) into its accounts, and year-on-year (YoY) comparisons should take this into consideration.
On Sept 30 2014, TM completed its investment into one-time rival P1, making TM the new holding company for P1, whose other investors are Green Packet with a 31.1% stake and South Korea’s SK Telecom Co Ltd with 13.6%.
“Q1 2015 was a challenging quarter for the industry, including TM. We saw some pressure on our profitability as we faced some cost increases, largely stemming from the diversity in our product mix,” said TM group chief executive officer Zamzamzairani Mohd Isa (pic).
Its Internet and ‘Others’ services revenue continues to be a bright spot, however.
“Our total broadband customer base grew to 2.27 million customers and I am pleased to note that 50% of total broadband customers are now on packages above 4Mbps,” said Zamzamzairani.
“UniFi continues to see a healthy growth of 15.9%, with close to 757,000 customers activated as at Q1 2015, representing a takeup rate of approximately 46%,” he added.
UniFi is TM’s high-speed broadband (HSBB) service.
Q1 2015 recap
In January, TM extended its HyppTV Everywhere app to non-UniFi or Streamyx customers and later announced a collaboration with mobile operator Digi Telecommunications Sdn Bhd to offer packages to the latter’s customers.
TM said it expects to attract more viewers amongst the tech-savvy Gen-Y segment, the largest number of consumers of mobile entertainment and content, while at the same time enabling more Malaysians to watch HyppTV anywhere and anytime, with these developments.
On the business front, it signed three agreements with Nusajaya Tech Park Sdn Bhd (NTPSB) towards developing a flagship park in Iskandar Malaysia, Johor.
These involve the establishment of a carrier neutral Nusajaya Data Centre, the provision of ICT infrastructure and services, and the development of smart services including safety and security services.
It also recently signed a Memorandum of Collaboration (MoC) with Wilayah Persekutuan Infrastructure Sdn Bhd (WPI) to work together towards deploying free and premium WiFi service in Wilayah Persekutuan (the Federal Territories, which include the city of Kuala Lumpur).
To support the Government’s call for boosting broadband take-up and encouraging customers to upgrade to higher speeds, TM also announced the introduction of two new broadband packages.
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