KUALA LUMPUR (Feb 23): Fixed-line operator Telekom Malaysia (TM) said Friday its net profit more than doubled in the fourth quarter of 2023 from a year ago thanks to tax credits and higher data revenue as well as lower costs.
Net profit for the three months ended Dec 31, 2023 was RM433.53 million compared to RM160.18 million over the same period last year, TM said in an exchange filing. The company booked tax credit of RM46.3 million during the quarter as opposed to tax expense of RM53.6 million.
Revenue for the quarter meanwhile rose 5% year-on-year to RM3.12 billion from RM2.98 billion, mainly from an increase in data, internet and multimedia services, and other telecommunication services.
For 2024, the company said it is targeting “low single-digit” growth in revenue and earnings before interest and tax of between RM2.1 billion and RM2.2 billion. The company is also planning for 14%-18% capital expenditure as a percentage of revenue.
“In 2024, TM will focus on core connectivity while exploring new ventures, including platform and ecosystem, leveraging on cloud platforms and utilising emerging technologies like Artificial Intelligence,” the company said.
TM declared a second interim dividend and final dividend of 15.5 sen per share for a total of approximately RM594.9 million, bringing total dividend payout to 25 sen per share for the year.
For the full-year, net profit surged 64% to RM1.87 billion from RM1.14 billion thanks to lower net finance cost and recognition of tax credits from unutilised tax losses. Earnings before interest and tax were largely flat at RM2.09 billion.
Revenue for the year edged up 1.2% to RM12.26 billion from RM12.12 billion in 2022. The company’s capital expenditure totalled RM1.9 billion, or 15.9% of revenue, largely on expanding the network infrastructure nationwide and regional submarine cable system.
TM’s key Unifi’s fixed broadband subscriptions grew 3.1% to 3.13 million subscribers.
Shares of Telekom Malaysia closed unchanged at RM5.91 on Friday, giving it a market capitalisation of RM22.68 billion.