TM posts 75.8% net profit decline in 1Q09

22 May 2009

Fixed line and broadband incumbent Telekom Malaysia™ has released financial results for the three months ended 31 March 2009, revealing a slump in net profit. The operator reported that compared to the same period last year net profit had declined 75.8% to MYR27.7 million (USD7.68 million); TM however said the drop was largely the result of unrealised foreign exchange translation losses of MYR175.5 million. Revenue rose however, up 5% year-on-year at MYR2.11 billion, on the back of increased data and internet revenue, while the operator posted earnings before interest, tax, depreciation and amortisation (EBITDA) of MYR816.2 million, a 33.5% y-o-y increase.

The company, which split off its mobile operations in April 2008, said it expects fixed line voice revenue to continue its decline in this financial year, as it revealed that fixed line subscribers had fallen to 4.29 million at end-March 2009, down from 4.37 million a year earlier. It expects growth from its high speed internet and data services to help offset this decline however, reporting a 24.9% rise in subscribers to its broadband services, bringing its total to 1.33 million.

Malaysia, Telekom Malaysia