TM’s 3Q net profit more than doubles to RM538 mil on lower tax, net finance costs

KUALA LUMPUR (Nov 23): Telekom Malaysia Bhd’s (TM) net profit more than doubled to RM538.19 million for the third quarter ended Sept 30, 2023 (3QFY2023) from RM265.2 million recorded in the previous year’s corresponding quarter, due to lower tax and net finance costs.

As such, earnings per share for the quarter jumped to 14.08 sen from 7.01 sen in 3QFY2022.

Quarterly revenue slipped to RM3.08 billion from RM3.16 billion previously, amid a decrease in voice, data and other telecommunications related services. This, however, was offset by higher revenue from internet and multimedia services, reflecting the steady growth in cumulative fixed broadband subscribers.

The group’s operating profits before finance costs decreased by 4.8% to RM578 million from RM607.1 million, the telecommunications company’s filing showed on Thursday.

“With lower net finance cost and the recognition of tax credits from the utilisation of previously unrecognised tax losses, the group’s profit after tax and non-controlling interests (Patami) stood at RM538.2 million for the quarter, a 102.9% increase from the RM265.2 million recorded in 3QFY2022,” said TM.

No dividend was declared for 3QFY2023.

For the nine months ended Sept 30, TM’s net profit climbed 46.17% to RM1.44 billion from RM983.11 million, while revenue decreased to RM9.13 billion from RM9.14 billion.

On a quarter-on-quarter basis, TM said its net profit decreased by 5.37% from RM568.74 million due to lower operating profit and net tax credit. Revenue inched down 0.72% from RM3.1 billion in 2QFY2023.

Looking ahead, TM said it remains steadfast in strengthening its core business for commercial sustainability and contributing to the nation’s growth. The company will continue collaborating closely with the government to be the trusted partner to grow Malaysia’s overall connectivity and digital ecosystem.

On its recent internal restructuring, the company said it has also consolidated its consumer business effective Nov 15, 2023.

“We are now merging the different units into one Converged Unifi, including sales touchpoints, product, ecosystem and customer experience support. This will allow Unifi to continue offering converged solutions and lifestyles with more attractive packages, improved mobile coverage with 5G, enriched entertainment content and other competitive offerings to homes and SMEs.

“TM One maintains its focus on next-gen connectivity, smart services innovation, cloud, 5G and cybersecurity while providing fit-for-purpose solutions to enable industrial digital transformation and economic growth,” it said.

Separately, TM chief executive officer Amar Huzaimi Md Deris said the company supports the recently launched New Industrial Master Plan (NIMP) 2030 and is well positioned to unlock technological opportunities while driving innovation for the nation and key economic sectors.

“As we continue our journey towards humanising technologies, our commitment extends beyond services to the development and refinement of smart innovative solutions. It is not just about technological advancement and improving business outcomes but also about enhancing lives, bringing positive impact to the environment and society.

“In summary, these initiatives underscore our goals to foster digitalisation and emerging technologies. Our comprehensive approach reflects TM’s position as a trailblazer in the ever evolving landscape, with a clear focus on driving positive change and shaping the future of digital connectivity,” added Amar.

TM’s share price closed one sen or 0.19% higher at RM5.23, giving it a market capitalisation of RM20.07 billion.