TM Post Strong First Quarter Results Despite Pandemic
Revenue increases 9.9% to RM 2.8 billion, thanks to unifi, TM ONE and TM WHOLESALE
by NUR HANANI AZMAN
TELEKOM Malaysia Bhd (TM) Reported net profit of RM 325.47 million for the first quarter ended March 31, 2021 (1Q21), an increase of 113.4% year-over-year (year-on-year) compared to profit of RM 152.52 million in 1Q20.
Its revenue grew 9.9% year-on-year to RM 2.81 billion, driven by increased revenue across all lines of business – unifi, TM ONE and TM WHOLESALE – the company noted. telecommunications in a depot in Bursa Malaysia yesterday.
Coupled with continued profitability initiatives, TM MD and Group CEO Imri Mokhtar said earnings before interest and taxes (EBIT) improved significantly by 80.8% year-on-year to RM 589.7 million, and that profit after tax and minority interests doubled to RM 325.5 million from 1Q20.
âWe started 2021 with positive momentum and a good start for our 2021-2023 ‘New TM’ transformation program. We are pleased to report a strong year-over-year performance despite these unprecedented times, âhe said in a statement.
Ongoing cost improvement initiatives continue to show results with total operating cost ratios (% cost / revenue) dropping from 88.1% last year to 79.7%, supporting both the revenue growth while optimizing the profitability of direct costs, labor and other operating costs, depreciation and amortization.
In 1Q21, TM invested 8.8% of its revenue in capital expenditure (capex) amounting to RM 247 million while continuing to modernize its network and technology platforms to provide current and future solutions to consumers. clients.
âOf the amount invested, 69% were intended for access to the network, including the national digital infrastructure plan (Jendela) (extension of high-speed fiber), 12% to the core network and the balance 19% to support systems.
âTM expects to meet the 2021 market forecast announced in February with stable or single-digit revenue growth, throughput of over RM 1.6 billion and capex forecast between 14% and 18% of revenue. ‘business’, according to
Unifi maintains its strong momentum and convergence leadership with 11.9% year-on-year growth in fixed broadband customers to 2.44 million, with the highest quarterly fixed broadband customer net additions of 110,000, driven by the growth of the unifi customer base.
The Motion Control Ordinance since 2020 has increased the demand for fixed broadband, and unifi has succeeded in converting this demand with its compelling proposal for unifi convergence under the
#Unifiyourworld campaign, delivering the best customer value for broadband, mobile and content through unifi Plus Box.
âThis growth was also supported by the higher number of ports deployed and the wider deployment of the fiber network as part of the Jendela program, which TM exceeded its 1Q targets by reaching 141% of its
“TM is also expanding the pool of network providers to increase the capacity of its fiber extension program in the coming quarters,” the statement read.
As a critical enabler, Imri said TM stands ready to play a leading role in the execution of the Jendela implementation plan and the realization of Malaysia’s digital economy plan, leveraging full connectivity, digital infrastructure and innovative solutions.
âWe are also committed to sustainable growth, with a greater emphasis on the environment, social and governance (ESG) by our board of directors and our management.
âWe remain focused on our sustainable ESG development journey. I am happy to report that we have maintained our balance sheet as one of Bursa’s 75 companies on the FTSE4Good Bursa Malaysia Index, with a full rating of 4/4, âhe added.