Telekom Malaysia group chief executive officer Amar Huzaimi Md Deris
KUALA LUMPUR: Telekom Malaysia Bhd
(TM) recorded a stronger financial performance in the second quarter ended June 30, 2023 (2Q 2023) with net profit surging to RM568.74 million from RM378.06 million in the same period a year earlier.
Revenue for the quarter rose 0.3 per cent to RM3.10 billion from RM3.09 billion previously propelled by Unifi’s expansion which saw a substantial increase to 3.11 million fixed broadband subscribers, the telecommunication company said in a filing with Bursa Malaysia today.
"The growth was also due to TM Global’s solid 10 per cent revenue growth driven by higher demand for domestic and international data services,” it said.
It also declared a higher interim dividend of 9.5 sen per share for the financial year ending Dec 31, 2023, to be paid on Sept 29, 2023.
TM said its capital expenditure (Capex) allocation for the first half of 2023 (1H FY2023) stood at RM942.8 million, which accounted for 15.6 per cent of the overall revenue, for the expansion of network infrastructure to enhance nationwide coverage.
Meanwhile, it said earnings before interest and tax (EBIT) was lower by 10.3 per cent at RM630 million from RM702.7 million previously due to higher preventive maintenance costs to better serve its customers and higher depreciation from revision of asset useful life.
Group chief executive officer Amar Huzaimi Md Deris said the quarter’s performance, which was marked by overall positive results across its lines of business (LOBs), further strengthened TM’s growth momentum in facing a more competitive market.
"TM is excited by the huge potential of fixed, mobile and lifestyle convergence in the digital market as well as digital infrastructure and solutions for micro, small and medium enterprises (MSME), enterprise and government sectors whilst pursuing to capture opportunities from International partners including hyperscalers,” he said.
Amar Huzaimi said TM also remain committed to continuously investing in expanding its network to enable the nation’s progress towards a Digital Malaysia.
He said the group would continue to collaborate closely with the government to serve as the nation’s trusted partner to grow Malaysia’s overall connectivity and digital ecosystem, including 5G.
"In the coming months, TM expects to face a more challenging marketplace but remains confident in our overall positive financial performance.
"We remain steadfast to continue strengthening our core business to be commercially sustainable whilst also continuing to contribute to the nation’s growth,” he added. - Bernama
