TM 2Q results show 46% drop in gross profit

Dominant fixed line operator Telekom Malaysia™ has released financial results for the three months ended 30 June 2008, reporting a 46% drop in profit before tax for the quarter year-on-year. Revenues rose 5.1% from the previous quarter to MYR2.11 billion (USD633 million), but declining voice revenues, one-off charges and a drop in the value of investment saw the operator report profit before tax at MYR238.1 million, compared to MYR441.2 million a year earlier. The state-owned telco claimed growth in broadband and data services had helped offset the decline in voice revenue, and would help keep the company profitable for the fiscal year; broadband subscribers were reported to have reached 1.46 million, up from 1.07 million in mid-2007. TM spun off its mobile phone and overseas operations in April while keeping the fixed line data, voice and broadband business.