TM's Q3 net profit surges 26pct on low operating cost, revenue lower at RM2.7bil

By Farah Adilla - November 25, 2020 @ 6:50am

(File pix) TM, in a filing to Bursa Malaysia today, said this was attained on the back of lower operating cost, resulting from the continued momentum of its cost optimisation programmes.

KUALA LUMPUR: Telekom Malaysia Bhd's (TM) net profit jumped 26.1 per cent to RM329.4 million in the third quarter (Q3) ended September 30, 2020 from RM261.31 million in the same quarter a year ago.

TM, in a filing to Bursa Malaysia today, said this was attained on the back of lower operating cost, resulting from the continued momentum of its cost optimisation programmes.

Group revenue eased 5.7 per cent to RM2.69 billion from RM2.85 billion previously.

TM said this was due to lower revenue for all lines of products except for data services, reflecting the impact of Streamyx price adjustments effective from September of the previous financial year as well as impact from lower volume and restricted economic activities during the Movement Control Order.

For the nine-month period, TM's net profit increased 17.9 per cent to RM736.73 million from RM624.82 million, while revenue shrank 6.7 per cent to RM7.84 billion from RM8.4 billion.

TM group chief executive officer Imri Mokhtar said the group's efforts in cost optimisation had continued to yield results with a healthy earnings and net profit.

He said the group was seeing unifi gaining momentum, posting a 6.3 per cent growth to 1.65 million subscribers, with total broadband customer base now at 2.26 million.

"We achieved the highest convergence penetration (of three services or more) in TM households since 2018, of 58 per cent, as more Malaysians embrace digital living-working in this new norm.

"On the wholesale front, we continue to collaborate with industry players in Malaysia and globally. At TM ONE, we further cemented our leadership position as the digital enabler for enterprise and public sector customers with enterprise-grade connectivity and end-to-end cloud offerings," he said in a separate statement.

TM said it was at the forefront in collaborating with other service providers, enabling and delivering the government's Jendela programme.

"We continue to seek opportunities to cater for future demands of connectivity, in line with our proven commitment to maintain business profitability while adapting to and exploring new norms and avenues from this dynamic circumstances that the nation faces today," it said.