TM charts 51% rise in Q2 net profit on back of forex gain
By Karamjit Singh August 30, 2017
- 1H 2017 net profit down 4.5% over same period in 2016 despite 0.75% revenue increase
- Unifi , multimedia services a bright spot, strong focus on consumer segment in second half
AGAINST a backdrop of strong head winds and stormy waters, as described by its Group CEO, Mohammed Shazalli Ramly, fixed line operator, Telekom Malaysia Bhd (TM) saw a 51% rise in net profit of US$49.32 million (RM210.48 million) for the three months ending June 30 compared with US$32.67 million (RM139.45 million) in the same period last year, boosted by foreign exchange gain. TM saw a RM50 million forex gain compared with a loss of RM34.7 million last year.
Its net profit in the first half fell by 4.54% to RM440.92 million compared with the same period last year despite a 0.75% increase in revenue at RM5.94 billion versus RM5.90 billion over the same six month period last year.
Quarterly revenue dropped 2.3% to RM2.98 billion from RM3.05 billion in the corresponding period last year with lower revenue contributions from data, voice as well as other telecommunication and non-telecommunication-related segments.
The big hit to revenue in the first half has come from lower government spending with Shazalli pointing out that the public sector contributes about 22% to TM’s overall revenue. Data revenue from enterprise customers and managed accounts stood at RM1.326 billion for the six month period of 2017 versus RM1.351 billion in the same period last year, a drop of 1.9%.
The bright spot in the first half has come from its internet and multimedia services segment, led by Unifi which crossed the 1 million customer mark on in July, leading the segment to register 8.5% higher revenue of RM982.3mil in the second quarter.
“TM currently has 2.36 million broadband customers where 88% of our UniFi customers are on packages of 10MB and above, compared to only 68% last year,” said Shazalli during TM’s first half financial results briefing yesterday. He also highlighted that TM’s mobility service, webe, continues to show steady growth, hitting 5.6% of TM’s household penetration for the first half of 2016.
Shazalli says TM will be making a stronger consumer focused push in the second half of the year with a slew of new products to be announced around mid Sept, including a special deal for eCommerce merchants.
TM has declared an interim dividend of 9.4sen per share of approximately RM353.2 million.
For more technology news and the latest updates, follow us on Facebook, Twitter or LinkedIn.