TM 3Q net profit slides 18% to RM271m on forex losses

Photo by Mohd Suhaimi Mohamed Yusuf/The Edge

Photo by Mohd Suhaimi Mohamed Yusuf/The Edge

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KUALA LUMPUR (Nov 25): Telekom Malaysia Bhd (TM)’s net profit in the third quarter ended Sept 30, 2021 (3QFY21) slid by 17.67% to RM271.21 million from RM329.4 million a year ago due to foreign exchange translation losses of RM12.5 million.

As a result, earnings per share fell to 7.19 sen from 8.74 sen, its Bursa Malaysia filing showed on Thursday (Nov 25). 

The group said its quarterly revenue increased slightly by 4.22% to RM2.8 billion from RM2.69 billion, underpinned by an increase in revenue from all services except non-telecommunication-related services. 

The group, however, did not declare any dividend to its shareholders in the quarter. It had declared total dividends of seven sen for the nine-month period ended Sept 30, 2021 (9MFY21), compared with 6.8 sen a year ago.

In 9MFY21, the group’s net profit rose by 7.74% to RM815.27 million against RM756.67 million a year ago, while revenue increased by 6.85% to RM8.38 billion from RM7.84 billion.

On a quarterly basis, the group’s 3QFY21 net profit increased from RM218.59 million registered in the immediate preceding quarter, while revenue came in higher than RM2.76 billion in 2QFY21.

Commenting on the group’s financial performance, TM group CEO Imri Mokhtar said the group was able to deliver another solid quarter of revenue and net profit growth following its efforts to deliver digital connectivity and solutions in supporting the sustainability and recovery of the country.

“Our next focus will be on delivering enhanced customer experience and strengthening our digital offerings across all customer segments in unifi, TM ONE and TM WHOLESALE.

“We will continue to play our leading role in Malaysia’s digitalisation drive outlined by the Jalinan Digital Negara (JENDELA) action plan, Budget 2022 and the 12th Malaysian Plan, including MyDIGITAL blueprint.

“As we continue our shift towards becoming a human-centred technology company, we will develop innovative solutions and drive digital adoption across our broad customer base of home, SME, corporate and government customers — anchored on enhanced customer experience,” Imri said in a statement. 

On 5G rollout, TM shall continue to assess and review the impact on its future business operations and financial performance under a Single Wholesale Network (SWN) model introduced by the government. 

Shares in TM finished 16 sen or 2.86% lower to RM5.43, giving it a market value of RM20.5 billion.

Lam Jian Wyn