Telekom Malaysia reveals revenue, EBITDA and net profit declines for FY18

27 Feb 2019

Telekom Malaysia recorded a 2.2% decline in revenue for the year ended 31 December 2018, with total turnover standing at MYR11.82 billion (USD2.9 billion), as higher revenues from internet services failed to offset declines from the company’s other business segments. Internet turnover reached MYR4.12 billion in FY 2018, up from MYR3.97 billion a year earlier, while by comparison revenues from voice services declined by 5.3% year-on-year, to MYR3.01 billion. Full year consolidated EBITDA, meanwhile, was MYR3.47 billion, representing an annualised decline of 3.0%, while operating income plunged more than 94% y-o-y to MYR64.6 million – after TM recognised a provision of MYR982.5 million for ‘the impairment of fixed and wireless network assets following the continued pressure from challenging business, industry and economic conditions, combined’. Profit after tax and minority interest (PATAMI) totalled MYR153.2 million for 2018, down significantly from the MYR929.7 million reported for 2017. Capital expenditures in the twelve-month period under review stood at MYR2.14 billion, down from MYR2.76 billion.

Looking to the future, TM has said it expects a revenue decline in the ‘low to mid-single digit’ range for 2019, with operating income forecast as being ‘higher than [the] 2018 level’.

In terms of operating metrics, TM confirmed that it had a total of 2.234 million fixed broadband customers on its books at the end of 2018, down from 2.333 million a year earlier. Of that total, an increasing proportion were attributed to its fibre-based ‘Unifi’ product range, with such accesses reaching 1.298 million 31 December 2018, up from 1.126 million at end-2017.

Malaysia, Telekom Malaysia