TM 2012 revenues up 9.7%, profits double in first half

  • Revenue growth of 9.7% to RM4.80 billion, EBITDA grew 6.9% to RM1.58 billion
  • Broadband customers increased 9.9% YoY to 2.011 million, Internet revenue growth of 21.7%

Telekom Malaysia Bhd (TM) announced a 9.7% rise in group revenue for the six months ended June 30 2012 to RM4.80 billion from RM4.38 billion (US$1.54 billion from US$1.40 billion) in the corresponding period last year.

The improved performance was mainly driven by positive growth across all key products – Internet and multimedia, data, voice and other telecommunications related services, the company said in a statement.

Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) grew by 6.9% YTD from RM1.48 billion in the first half of 2011 (1H2011) to RM1.58 billion in 1H2012 attributable to higher operating revenue.

Normalized EBITDA after adjusting for FX gain on international trade settlement was also higher by 5.3%, to RM1.58 billion. EBITDA margin was at 32.4% whilst the Normalized EBITDA margin stood at 32.3%.

Group Profit After Tax And Minority Interest (PATAMI) rose 106.2% YTD to RM599.1 million as compared to RM290.5 million in the corresponding period in 2011 due to the higher revenue, change in useful life of network assets and recognition of deferred tax income on unutilized tax incentives, TM said.

TM 2012 revenues up 9.7%, profits double in first halfNormalized PATAMI also rose 57.8% YTD to RM406.4 million due to higher revenue, change of useful life of network assets and a lower net tax expense as compared to 1H2011.

“We’re happy to note that TM continues to progress well financially and operationally, producing an all-round positive set of solid results,” said TM group chief executive officer Dato’ Sri Zamzamzairani Mohd Isa (pic, far left, with TM chairman Datuk Dr Halim Shafie and group CFO Datuk Bazlan Osman).

“Our performance in the first six months is very encouraging and reflective of the momentum we have built through our ongoing transformation initiatives. Internet revenue rose by 21.7%, from RM941 million in 1H2011 to RM1.145 billion in 1H2012.

“This was due to the growth in broadband customers, particularly UniFi [TM’s High-Speed Broadband or HSBB offering]. Data revenue increased by 5.6% to RM1.016 billion against RM962 million in 1H2011," he added.

[RM3.12 = US$1]

Zamzamzairani also said that TM’s broadband services had crossed the 2-million-customer threshold.

“Our broadband customer base continued to increase in the second quarter of this year, with Streamyx and UniFi collectively growing 9.9% YoY, and 1.9% QoQ to 2.011 million. TM WiFi hotspots zones have grown from 16,111 sites in 1H2011 to 23,273 sites nationwide in 1H2012,” he said.

In terms of coverage, as at 2Q2012, TM rolled out HSBB access to close to 1.26 million premises covering 81 exchange areas, up from 1.22 million in 1Q2012. In terms of take-up, TM had activated 384,024 customers in 2Q2012 from 315,745 in 1Q2012, which represents a net addition of 21.6% or more than 68,000 customers QoQ or more than 275,000 customers YoY, a 252% growth, the company said.

To date, TM has activated more than 420,000 customers. This translates into a take-up rate of more than 33% against premises passed.

HSBB has now been extended beyond the Klang Valley and the surrounding areas, venturing out further in the states, with UniFi recently also made available in Terengganu in addition to Penang, Kedah, Johor, Melaka, Negeri Sembilan and Perak.

In addition to the recently completed capital repayment of RM1.07 billion, TM is proposing a single-tier interim dividend of 9.8 sen per share or approximately RM350.6 million for its shareholders.

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