TM’s profit almost doubles in Q1 on lower operating costs

PETALING JAYA: Telekom Malaysia Bhd’s (TM) net profit almost doubled to RM308.28 million for the first quarter ended March 31, 2019 compared with RM157.16 million in the same quarter a year ago, mainly due to a reduction in operating costs.

However, its revenue was down 2.4% to RM2.78 billion from RM2.85 billion, dragged down by a decline in voice, internet and multimedia services and non-telecommunication related services revenue.

TM said the total capital expenditure (capex) for Q1 was in line with guidance at RM151 million, or 5.4% of revenue.

Its operating expenditure (Opex)/revenue also improved 11.4 percentage points.

TM said in a filing with the stock exchange that while unifi broadband services continue to see an increase in customer base, the decrease in revenue was from Streamyx as well as unifi mobile.

TM acting group CEO and COO Imri Mokhtar opined that the market is increasingly competitive, with players exploring opportunities to sustain and grow their business.

“We saw the Performance Improvement Programme 2019 – 2021 (PIP2019-2021) yield improved profitability for the group in Q1 2019. In the coming months, we will continue to focus on our strategic pillars of ‘Converged Services’, ‘Simple and Digital’ and ‘Lean and Lower Cost’ in our daily operations to drive our performance and generate more value.”

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