Internet services fuel TM’s Q1 2016 revenue, operating profit up 15%

  • Overall broadband customer base grew 4.3% to 2.36 million, driven by UniFi
  • UniFi take-up remained strong with 877,000 customers as at March 31

Internet services fuel TM’s Q1 2016 revenue, operating profit up 15%TELEKOM Malaysia Bhd (TM) posted revenue growth of 2.9% year-on-year (YoY) to RM2.9 billion in the first quarter ended March 31 2016, from RM2.8 billion in the corresponding period last year. The growth was mainly driven by higher contribution from Internet services revenue.
 
[RM1 = US$0.24 at current rates]
 
Group operating profit (Earnings Before Interest & Tax or EBIT) grew 15% YoY to RM279.9 million compared with RM243.4 million in Q1 2015 due to higher revenue and better cost management, TM said in a statement.
 
Stripping off some non-operational items, in particular foreign exchange loss on international trade settlements, its normalised EBIT was at RM312 million, which was 26.9% higher YoY, the company said.
 
Group reported PBT (profit before tax) was RM393.2 million, and normalised PBT was higher by 24.9% YoY, at RM270.3 million.
 
Group reported PATAMI (Profit After Tax And Minority Interests) more than doubled YoY to RM322.4 million, whilst group normalised PATAMI was higher by 9.6% at RM195.4 million.
 
Q1 2016 was an encouraging one for us despite an overall challenging environment,” said group chief executive officer Zamzamzairani Mohd Isa.
 
“This growth was primarily driven by higher contribution from Internet services revenue. We continue to strengthen our leadership position with a 4.3% increase in our total broadband customer base to 2.36 million customers.
 
“This was driven by sustained growth in UniFi (high-speed broadband or HSBB service), which had 877,000 customers as at March 31, more than half of them are on packages of 10Mbps and above.
 
“Of our total broadband customer base, 59% of them are now on packages of 4Mbps and above,” he added.
 
Total capital expenditure for Q1 2016 was RM318 million or 11.1% of revenue. Of the total spent, 50% was for access, 19% for its core network, and 31% for support systems.
 
TM had earlier announced its capex guidance for the year to be at 25-30% of revenue excluding webe digital Sdn Bhd, its mobile services subsidiary.
 
The higher expected capex spend is mainly for the expansion of its HSBB footprint.
 
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