Telekom Malaysia records EBIT, net profit increases in FY19, despite revenue decline

24 Feb 2020

Telekom Malaysia has posted a 3.3% year-on-year decline in revenues for the twelve months ended 31 December 2019 – broadly in line with its guidance and ‘mainly due to lower contribution from all lines of products except data’. The telco reported total turnover of MYR11.43 billion (USD2.73 billion) for the year under review, down from MYR11.82 billion in FY 2018, with the largest contributor to revenues in product terms being internet; turnover from such services totalled MYR3.81 billion in FY19, down 7.4% y-o-y. However, voice revenues declined by 11.2% on an annualised basis to MYR2.68 billion, attributable to ‘lower traffic minutes and customer base across all segments’, but data revenues were the bright spot, rising by 16.9% y-o-y to MYR2.86 billion.

In terms of other key financial metrics, TM’s reported EBIT for 2019 increased significantly, from just under MYR65 million to MYR1.57 billion, due to lower operating costs realised by its various cost optimisation initiatives. In FY18, meanwhile, it had recognised a provision of MYR983 million for impairment of fixed and wireless network assets. Reported net profit also saw a notable improvement, rising from MYR153 million to MYR633 million. Capital expenditures in 2019 totalled MYR1.36 billion, meanwhile, of which 22% was spent on ‘core network’, 53% on ‘access network’ and the balance on ‘support system’.

As at end-December 2019 TM had a broadband subscriber base of 2.184 million, up from 2.159 million three months earlier, but down from the 2.234 million reported for end-2018. Of the end-2019 total, 1.444 million were subscribed to one of the telco’s fibre-based, ‘unifi’ branded broadband offerings, up from 1.373 million at end-September 2019 and 1.298 million at 31 December 2018.

Malaysia, Telekom Malaysia