KUALA LUMPUR: Telekom Malaysia Bhd’s (TM) net profit tumbled 69.2% to RM79.94mil in the fourth quarter ended Dec 31, 2021 (Q421) from RM259.43mil a year ago.

       The telco group’s operating revenue increased by 5.1% to RM3.15bil compared to RM3bil in the same quarter last year with strong increase in revenue from internet and data.

       Its operating profits before finance cost was RM294.8mil for the quarter ended, down 28.4% from the RM411.5mil posted in 4Q21.

       Operating cost included RM122mil million impairment of the group’s mobile assets, the accelerated depreciation that the group commenced in the current quarter as well as provisions recognised for restoration of services and network affected by floods at the year end.

       For the full FY21, TM recorded a 6.4% rise in revenue to RM11.53bil from RM10.84bil in FY20.

       Its earnings before interest and tax (Ebit), rose 6.6% year-on-year to RM1.71bil, from RM1.6bil last year.

       Profit after tax and non-controlling interests (Patami) at RM895.2mil dipped 11.9% contributed by higher taxation including provision for Cukai Makmur, lesser interest income and forex losses, as well as impairment of TM’s mobile assets as the group prepares itself for 5G.

       TM’s board of directors proposed the final interim dividend at six sen per share, resulting in a total dividend of 13 sen per share for 2021.

       Its capital expenditure (capex) for the year was reported at RM1.7bil, or 14.7% of revenue while free cash flow at RM2.19bil rose 9.5% from RM2bil.

       Group chief executive officer Imri Mokhtar said TM had shown positive results in 2021, driven by the New TM Transformation Programme which has delivered overall growth in TM’s revenue and EBIT. Cost rationalisation has also significantly improved the group’s profitability.

       “As TM enters its second year of transformation in 2022, we are activating more programmes to ensure we quickly move forward as a growth company, and keep pace with our trajectory.

       “TM’s revenue growth is expected to remain intact, in line with the group's market guidance, which is between low to middle single digit growth, while Ebit is projected to be more than RM1.8bil, driven by TM’s three Lines of Business: unifi, TM ONE and TM Wholesale.

       “We expect to invest between 14% to 18% of our revenue this year on capex, reflecting our continued commitment to reinvesting into growth areas, capability, and capacity building, as well as enhanced customer experience,” Imri said.