KUALA LUMPUR: Telekom Malaysia Bhd (TM) posted a 4.4% improvement in net profit to RM339.84mil in the first quarter ended March 31, from RM325.45mil in the same period last year.
The telco said the improved earnings was driven by lower finance cost subsequent to the group’s early redemption of its RM2bil sukuk in March 2021 as well as lower foreign exchange translation losses on borrowings.
The group has also applied the 33% Cukai Makmur statutory tax rate accordingly for the current quarter, it said in the notes accompanying its quarterly results.
TM operating revenue increased by 2.9% to RM2.89bil in the first quarter compared to RM2.8bil in the same quarter last year with a strong increase in revenue from internet and multimedia, voice and non-telecommunication services.
In a separate statement, TM said entering into the second year of its 3-year Transformation Programme, brought forward its manpower optimisation to enable the earlier realisation of expected benefits to the group.
This, along with foreign exchange impact on trade settlement has led to a 5.0% decrease in earnings before interest and taxes (EBIT) at RM560.4mil in 1Q compared to RM589.7mil in the same quarter last year.
“Excluding these costs, the group’s underlying EBIT is 14.0% higher at RM650.2mil compared to RM570.5mil in 1Q21.
“Free cash flow is lower by 15.1% at RM658.8mil compared to RM775.7mil due to higher capital expenditure as the group continues to invest in business expansion and meeting customers’ demands through technology refresh and network delivery, ensuring steady growth,” it said.
TM’s unifi posted a 10.6% increase in revenue to RM1.38bil in 1Q from RM1.24bil last year, driven by an increase in Internet, voice and sales of devices, with cumulative fixed Internet subscribers increasing 17.5% in the current quarter against the corresponding quarter last year.
Lower operating costs further contributed to a 50.2% improvement in EBIT, recorded at RM420.8mil for the current quarter ended, compared to RM280.1mil last year.
TM One recorded a 7.4% decrease in revenue to RM856.8mil in 1Q from RM925.2mil previously due to a decline in data services revenue arising from price revisions on contract renewals, bandwidth downgrades and terminations and lower customer projects in the current quarter.
Its EBIT declined by 24.3% to RM181.4mil in the current quarter from RM239.6mil last year.
Meanwhile, TM Wholesale’s revenue for the current quarter increased by 1.2% to RM639.5mil against RM631.9mil a year prior.
TM group chief executive officer Imri Mokhtar said: “Into the second year of our transformation, we are focused on strengthening our core business while investing into new growth areas to meet customers’ demands. In ensuring sustainability in the long run, we continue to grow our profitability to invest and seize opportunities arising from digital acceleration.”
“One of these opportunities is in the exciting space of digital solutions and services for enterprises. Building on TM One’s existing capability and relationships with enterprises and the public sector, we will deliver speed and agility through our new digital arm Credence: a corporate start-up led by technology leaders.
“unifi continues to better its fixed broadband and fixed-mobile convergence value proposition to improve customer experience, while expanding our offerings to provide quality entertainment to customers at home or on-the-go,” he said.