Telekom Malaysia reports net profit increase for 2Q20 on reduced operating costs

28 Aug 2020

Citing the ‘increasingly challenging operating environment and early consequences of the COVID-19 pandemic’, Telekom Malaysia has reported a 7.2% year-on-year decline in revenue for the quarter ended 30 June 2020. With the company reporting turnover of MYR2.592 billion (USD621 million) for 2Q20, it was, however, keen to highlight that this figure represented growth of 1.4% from the previous quarter. EBITDA for the three-month period under review totalled MYR961.9 million, again up against the first three months of 2020, but representing an 8.1% decline from the corresponding quarter of 2019.

More positively, Telekom Malaysia reported that operating profit for the 2Q20 totalled MYR426.3 million, up 56.1% y-o-y, attributed to lower operating cost achieved via the group’s continued cost optimisation programme. Consequently, net profit for 2Q20 also a marked improvement from the year-ago period, standing at MYR274.7 million, compared to MYR114.2 million in 2Q19.

In operational terms, the operator reported a total fixed broadband subscriber base of 2.227 million at 30 June 2020, up from 2.162 million a year earlier. Of the total, 1.551 million were signed up to one of its fibre-based ‘unifi’ branded services, up from 1.339 million at mid-2019. By contrast, the number of xDSL-based ‘Streamyx’ accesses continues to decline, reaching 676,000 at end-June 2020, down from 823,000 a year earlier.

Commenting on the results, Imri Mokhtar, Telekom Malaysia’s Group Chief Executive Officer, said: ‘I’m pleased to report a resilient quarter-on-quarter performance in these challenging times. We continued to maintain our commercial momentum supported by a proactive and well-coordinated business continuity management focus to meet our operational and customer needs … To mitigate the impact of the COVID-19 pandemic on our business, we will continue to actively evaluate various ways to meet our performance targets whilst optimising costs and capex across our operations. We have started to arrest the decline and we are positive that our cost optimisation initiatives will continue to bear fruit, translating into positive margins for the Group.’

Malaysia, Telekom Malaysia