08 April 2022

Telekom Malaysia Bhd’s (TM) net profit for the fourth quarter ended Dec 31, 2021 (4QFY21) dropped 69.2% to RM79.94m from RM259.44m over the same period of the previous year.

The operator attributed the drop in profit to a RM122m impairment of the group’s mobile assets, the accelerated depreciation that the group commenced in the current quarter as well as provisions recognised for restoration of services and network affected by floods at the year end.

These were in addition to a RM37.9m lower foreign exchange translation gains on borrowings, and the application of the 33% Cukai Makmur tax rate on the group’s deferred tax liabilities.

However, quarterly revenue, was up 5.06% to RM3.15bn from RM3bn over the same period the year before with strong increase in revenue from internet and data.

TM group chief executive officer Imri Mokhtar said the telco’s revenue growth is expected to remain intact, in line with its market guidance, which is between low- and middle-single-digit growth. Earnings before interest and tax (EBIT) are projected to be more than RM1.8 billion, driven by TM’s three lines of business: Unifi, TM ONE and TM Wholesale.

“We expect to invest between 14% and 18% of our revenue this year on capital expenditure, reflecting our continued commitment to reinvesting in growth areas, capability, and capacity building, as well as enhanced customer experience,” Mokhtar said.

For full FY21, TM’s net profit slipped nearly 12% to RM895.21m from RM1.02bn in the previous year, although its revenue grew 6.35% to RM11.53bn from RM10.84bn.