PETALING JAYA: Telekom Malaysia Bhd (TM) returned to the black registering a net profit of RM261.31 million for the third quarter ended September 30, 2019 against a net loss of RM175.59 million in the previous corresponding period, thanks to ongoing cost optimisation.
Revenue for the quarter, however, slipped 3.2% to RM2.85 billion from RM2.95 billion, due to a decline in voice, internet and multimedia services, as well as other telecommunication related services.
“Overall, in Q3 2019, we saw continued improvements in our fundamentals. I’m pleased to report that our cost management initiatives under our performance improvement plan carried out since last year continues to yield results with profitability improvement. We have managed to keep a closer eye on our operational efficiencies to deliver sustained profitability with lower year-to-date (YTD) operating expenditure/revenue. However, in line with sector contraction, our revenue challenges still persist on the retail front, in line with our expectations and 2019 market guidance,” said TM CEO Datuk Noor Kamarul Anuar Nuruddin.
“Our capex for YTD September 2019 is well within guidance, totaling 8.8% of revenue, and on track as we continue our targeted investments to ensure we deliver better service experience for all our customers,” he added.
During the quarter, its unifi segment recorded an earnings before interest and taxes (ebit) of RM79.8 million compared to a loss of RM784.9 million in the corresponding quarter last year which included impairment losses recognised on network assets.
The TM One segment saw its ebit drop 7.7% to RM282.4 million, due to a decline in data and other telecommunication related services.
Meanwhile, the TM Global segment’s ebit surged 484.1% to RM79.9 million from a loss of RM20.8 million.
For the first nine months of the year, TM’s net profit jumped eight times to RM683.77 million from RM83.5 million on the back of a 3.8% decline in revenue to RM8.4 billion from RM8.73 billion.
The group said its performance improvement initiatives and efficient cost management continue to improve its profitability.
“Our focus remains toward our customers, and to strengthen the group’s performance by investing to improve customer experience across segments to grow our revenue.”
TM’s share price leaped 16 sen or 4.3% to close at RM3.88 today.
