KUALA LUMPUR (Aug 25): Telekom Malaysia Bhd’s (TM) net profit climbed 50.43% to RM568.74 million for the second quarter ended June 30, 2023 (2QFY2023), against RM378.06 million a year ago, its highest quarterly earnings since 4QFY2011.

In 4QFY2011, TM registered RM598.3 million in net profit. 

The higher earnings for the quarter under review was due to lower net finance cost and the recognition of tax credits from the utilisation of previously unrecognised tax losses, the telecommunications company announced to Bursa Malaysia on Friday (Aug 25).

Quarterly revenue rose marginally to RM3.1 billion from RM3.09 billion for 2QFY2022, as TM saw an increase in fixed broadband subscribers, thanks to Unifi’s expansion. Revenue growth was also contributed by higher demand for domestic and international data services.

Operating profit before finance cost decreased by 9.6% to RM630.7 million from RM697.8 million, following accelerated depreciation of certain elements of network assets that TM commenced from 4QFY2022 and higher other operating costs. 

The company declared a dividend of 9.5 sen per share, to be paid on Sept 29. 

Net profit grew 25.2% to RM898.83 million for the first half ended June 30, 2023 (1HFY2023), from RM717.9 million in the same period last year, while revenue inched up 1.14% to RM6.05 billion, from RM5.98 billion for 1HFY2022. 

TM said in a press statement that the capital expenditure allocation for the group stood at RM942.8 million for the first half of 2023, accounting for 15.6% of the overall revenue for the expansion of network infrastructure to enhance nationwide coverage.

Going forward, TM is aiming to pioneer industry growth through digitalisation and sharpen its focus on high-impact projects.

“The group is revolutionising the innovation ecosystem across key industries via advanced agnostic platforms towards positioning Malaysia as a digital hub for the region. In realising this aspiration, TM will continue growing talented people, harnessing collective potential, while modernising its digital customer relationship,” it said. 

Meanwhile, group chief executive officer Amar Huzaimi Md Deris said in the press statement TM expects to face a more challenging marketplace, but is confident in its overall positive financial performance.

“The group remains steadfast to continue strengthening its core business to be commercially sustainable, while also continuing to contribute to the nation’s growth. We also remain committed to continuously investing in expanding our network to enable the nation’s progress towards a Digital Malaysia. TM will continue to collaborate closely with the government to serve as the nation’s trusted partner to grow Malaysia’s overall connectivity and digital ecosystem, including 5G,” said Amar.

Shares in TM closed unchanged at RM5.06 on Friday, with a market capitalisation of RM19.34 billion.