Lower net finance cost, effective tax rate drags TM's earnings in Q1

Publish date: Thu, 25 May 2023, 08:00 PM

KUALA LUMPUR, May 25 (Bernama) -Telekom Malaysia Bhd's (TM) net profit eased to RM330.10 million in the first quarter ended March 31, 2023 (1Q) against RM339.84 million in the same period last year.

The telecommunications company said lower net finance cost and lower effective tax rate from the recognition of deferred tax assets mitigated the impact of the lower earnings before interest and taxation (EBIT) on the group's overall profitability.

Revenue for the quarter, however, increased to RM2.95 billion versus RM2.89 billion year-on-year driven by Unifi and TM Global.

TM said it saw an increase in customers with Unifi now serving close to 3.5 million home as well as micro, small, and medium enterprises (MSME) customers, while TM One caters to 8,800 businesses and TM Global serves more than 700 local and regional customers.

The company noted that 2023 is expected to be a challenging year with changes in the regulatory landscape, heightened competition, and other market structure changes.

"Though cautious with the overall outlook, we remain optimistic with the prospects of increased hyperconnectivity, continuous growth investments in connectivity and digitalisation across all customer segments," it said in a statement today.

TM said it would continue to enable Digital Malaysia by offering a comprehensive suite of communication services and digital solutions benefitting communities, businesses, and the government.

TM's capital expenditure stood at 14.0 per cent of overall revenue, or RM413.1 million, and a significant portion of the investment was dedicated to fortifying its fibre infrastructure, delivering new customer acquisition, international subsea cables investment, and 5G fibre network deployment to meet government's target of 80 per cent coverage by year-end, it added.


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