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TM on track to meet 2022 market forecast

KUALA LUMPUR: Telekom Malaysia Bhd (TM) is on track to meet its 2022 market forecast based on its current performance momentum.

“Advancing further in 2022, TM will continue to power a digital nation by delivering excellence in customer experience, solutions and connectivity through delivery from its core execution engine; employees or ‘Warga TM’ towards a more digital Malaysia,” the telecom operator said in a filing with Bursa Malaysia.

In the second quarter ended June 30 (2Q), TM’s net profit jumped 73% to RM378.06 million, or 10.02 sen of earnings per share, from RM218.59 million, or 5 .79 sen a year ago.

The telecom operator said the improved performance was due to accelerated demand for digital connectivity, services and solutions. TM has applied Cukai Makmur’s 33% statutory tax rate accordingly for the current quarter.

Revenue for the quarter increased by 11.8% to RM3.09 billion from RM2.76 billion previously, with increased revenue from all service lines, particularly data and internet services.

TM’s optimization efforts enabled it to record lower labor costs and other operating expenses, resulting in higher earnings before interest and taxes (EBIT) up 81.3% to RM702.7 million from RM387.6 million year-on-year.

TM declared an interim dividend of 9.0 sen per share in line with its policy of distributing annual dividends of 40% to 60% of its profit after tax and minority interests (Patami).

The applicable dividend reinvestment plan (DRS) is applicable for this dividend tranche in order to offer flexibility to shareholders, allowing them to participate in the group’s continued growth dynamic.

TM said unifi recorded a 10.3% increase in revenue from RM1.27 billion to RM1.4 billion in the current quarter, mainly due to continued subscriber growth fixed broadband, which recorded an increase of 14.1% compared to the same quarter last year.

The group’s corporate and public sector arm, TM One, recorded a year-on-year increase in revenue of 4.1% to RM854.6 million, with growth in recurring business across the corporate and of the government.

However, challenges and delays in the global supply chain continued to affect its operations and the subsequent delivery of several customer projects.

In the first half to June 30, TM posted a net profit of RM717.9 million on revenue of RM5.98 billion.

Group Chief Executive Imri Mokhtar said its financial performance and results demonstrated TM’s ability to effectively manage its business despite headwinds resulting from a difficult and competitive business environment.

“These results are also a powerful testament to our transformation journey and our commitment to delivering a sustainable and inclusive digital Malaysia.

“unifi will continue its trajectory to provide converged solutions to residential and SMB customers. unifi Business, in particular, will redouble its efforts to provide new propositions to engage SMB customers, including promotional campaigns and financing options,” he said.

“In the future, 5G will level the playing field and move the industry away from network-based competition towards service-based competition. TM welcomes the government’s call for industry to take stakes in DNB.

“5G will unlock and expand opportunities and growth areas for all of TM’s business segments – consumer, SMB, enterprise, wholesale as well as digital services. We look forward to deploying 5G-enabled products and solutions and unlocking value to meet customer demands.

“As a convergence champion in Malaysia, we believe 5G will strengthen our convergence proposition, and our customers will be encouraged to upgrade to 5G in the near term.

“Ultimately, TM’s growth and differentiation, whether in 5G, fixed broadband or digitalization, will depend on creating and delivering an exceptional customer experience, as we continue our evolution to become a human-centric technology company,” Imri said.