KUALA LUMPUR (Aug 26): Telekom Malaysia Bhd (KL:TM) said on Monday that its net profit for the second quarter ended June 30, 2024 (2QFY2024) fell 30.3% to RM396.4 million from RM568.7 million a year ago.

The decrease was primarily due to a one-time recognition of tax losses in the previous year, the fixed-line operator said in a filing to the local stock exchange.

The telecommunications group recorded RM161.5 million in taxes and zakat for 2QFY2024, compared with negative tax charges of RM82.6 million in 2QFY2023.

Earnings per share for the quarter stood at 10.33 sen, compared to 14.88 sen previously. It raised its dividend for the quarter to 12.5 sen per share, from 9.5 sen a year ago.

Quarterly revenue slid 1.7% year-on-year to RM2.91 billion from RM2.96 billion, dragged down by declining voice services, despite steady growth in internet and data services revenue.

The group’s operating profit before other gains and finance costs also declined by 2.7% to RM612.7 million from RM630.0 million.

In terms of segments, Unifi’s operating revenue decreased by 1.6% to RM1.39 billion from RM1.41 billion due to a decline in voice and mobile device revenue.

Operating revenue at TM One — which includes its managed services, data centres, and cybersecurity services — improved 4.9% to RM740.6 million from RM706.2 million, due to one-off revenue recognition related to a recent arbitration settlement.

TM Global, the wholesale business arm of TM, reported an 8.6% decrease in operating revenue to RM751.5 million from RM822.5 million, mainly due to lower international voice service revenue, which was offset by stronger performance in data services and other product lines.

The weaker performance in the current quarter resulted in TM’s net profit for the six months ended June 30, 2024 (1HFY2024) declining by 8.7% year-on-year to RM821.2 million from RM898.8 million.

Half-year revenue was flat at RM5.74 billion compared to the same period in 1HFY2023.

Looking ahead, the company said it is maintaining its 2024 guidance.

TM is proactively exploring new business opportunities through strategic partnerships, including collaboration with Singtel's Nxera to build an artificial intelligence-ready data centre in Johor, group chief executive officer Amar Huzaimi Md Deris said in a statement.

“We are focused on strengthening our core fundamentals, managing costs effectively, and seizing growth opportunities to ensure we stay well-positioned for the future.

“We remain steadfast in driving our aspiration to become a Digital Powerhouse by 2030 while positioning Malaysia as the digital hub for the region,” Amar added.

Shares in TM closed nine sen or 1.31% lower at RM6.76 on Monday, translating into a market capitalisation of RM25.94 billion. The counter is up 21% this year.