TM's Net Profit Shrinks To RM396.42 Mln In 2Q, Declares 12.5 Sen Dividend

KUALA LUMPUR, Aug 26 (Bernama) -- Telekom Malaysia Bhd (TM) has posted a lower net profit of RM396.42 million in the second quarter ended June 30, 2024 (2Q 2024), down from RM568.74 million a year ago.

Revenue also edged down by 1.7 per cent to RM2.91 billion during the quarter from RM2.96 billion previously, it said in Bursa Malaysia filing today.

This decline was mainly due to lower revenue from voice services. However, internet and data services revenue continued to show steady growth.

“Correspondingly, operating profit before other gains and finance cost declined by 2.7 per cent (RM17.3 million) to RM612.7 million from RM630.0 million.

“Group’s profit after tax and non-controlling interests (PATAMI) was RM396.4 million for 2Q 2024, reflecting a 30.3 per cent (RM172.3 million) decrease from the RM568.7 million recorded in the second quarter of 2023 (2Q 2023). This decline was primarily caused by the one-time recognition of tax losses in the previous year,” it said.

TM has declared an interim dividend of 12.5 sen per share, amounting to RM479.7 million, for the half-year ended June 30, 2024 (1H 2024), an increase from the 9.5 sen per share interim dividend declared in the previous year.

Regarding revenue by customer segments, it said Unifi maintained a steady growth of broadband subscribers in 2Q 2024 compared to the same quarter last year.

However, a decrease in voice and mobile device revenue resulted in a drop in operating revenue, decreasing by 1.6 per cent (RM22.7 million) to RM1.39 billion, down from RM1.41 billion in the same quarter of the previous year.

It also said TM One recorded operating revenue of RM740.6 million in the current quarter, improving by 4.9 per cent (RM34.4 million), from RM706.2 million in the same corresponding quarter last year, due to the one-off revenue recognition related to a recent arbitration settlement.

Due to lower international voice service revenue, it said TM Global’s operating revenue declined by 8.6 per cent (RM71.0 million) to RM751.5 million in 2Q 2024 from RM822.5 million in 2Q 2023. 

On prospects, it said TM proactively adapts its business strategy to identify new growth areas for the future while strengthening its core business.

TM has entered into a partnership with Nxera, Singtel’s data centre arm, to build an advanced artificial intelligence-ready data centre in Johor.

According to the filing, this demonstrated the commitment to delivering top-quality data centre solutions, supported by new submarine cables and the expansion of existing data centres, reinforcing TM’s position as the preferred digital hub for the ASEAN region.

“TM continues to support the 5G ecosystem in Malaysia and provide high-quality converged digital offerings across various segments of our customers.

“We remain confident in achieving our goal of becoming a digital powerhouse by 2030 and maintaining a positive outlook for the year, aligned with our 2024 issued market guidance,” it added. 

For 1H 2024, TM recorded a lower net profit of RM821.23 million from RM898.83 million in 1H 2023, while revenue stood at RM5.74 billion.

The group recorded a 14.5 per cent growth in earnings before interest and tax (EBIT), reaching RM1.26 billion compared to RM1.10 billion in the same period last year.

This was driven by continued focus on enhancing operational efficiency and effective cost management, while PATAMI decreased by 8.6 per cent to RM821.2 million in 1H 2024 due to a one-off tax credit in 2023. 

TM group chief executive officer Amar Huzaimi Md Deris said the Unifi UniVerse, a suite of offerings for home internet, mobile, entertainment and lifestyle solutions, continues to excite the market.

He also said that the group is advancing Malaysia’s digital infrastructure through the development of the Next Generation Emergency Services 999 (NG999) in collaboration with various government agencies.

Capital expenditure (CAPEX) in 1H 2024 amounted to RM460 million, representing 8.0 per cent of total revenue.

-- BERNAMA