Telekom Malaysia financial report card

tm

A few news on Telekom Malaysia financial status recently announced:

http://www.thestar.com.my/business/business-news/2016/11/28/hlib-research-keeps-hold-call-for-telekom-malaysia/

Higher-than-expected cost driven by marketing as well as supplies and materials costs, caused Telekom Malaysia Bhd’s (TM) to deliver below-expectations core net profit of RM578mil for the first nine months of financial year 2016 (9MFY16), according to Hong Leong Investment Bank (HLIB) Research.

It said on Monday overall revenue fell by 4%, impacted by the dismay showing by all other products, quarter-on-quarter. However, smaller accelerated depreciation associated to webe and leaner cost structure lifted core net profit by 24%.

http://asia.nikkei.com/Business/AC/Telekom-Malaysia-net-profit-down-4.2-as-operating-costs-rise

“Telekom Malaysia, Malaysia’s oldest telecommunications provider, said Friday that net profit fell 4.2% on the year to 159.8 million ringgit ($35.9 million) for the quarter ended Sept. 30 on higher operating costs.

Operating revenue edged up to 2.92 billion ringgit, according to a filing with Bursa Malaysia. The company credited higher revenue from internet and multimedia, other telecommunications-related services and non-telecommunications-related services “partially offset by reduction in voice and data services.”

https://www.telecompaper.com/news/telekom-malaysia-profit-jumps-nearly-15-in-q3–1173651

Capital expenditure was MYR 1.65 billion for the nine-month period or 18.7 percent of revenue, up from MYR 1.15 billion or 13.5 percent of revenue a year ago. Spending during the third quarter of 2016 was at MYR 715 million, almost half of which went to upgrades of the core network. Free cash flow (EBITDA – capex) fell to MYR 1.16 billion from MYR 1.66 billion in the year-earlier period.

Operationally, TM saw a 3.3 percent annual increase and 0.2 percent quarterly growth in its total broadband customers to 2.37 million at 30 September. UniFi continued to boost growth, with over 921,000 customers in total, up by 20,000 in the last three months. The number of fixed line customers fell by 18,000 in the quarter to 4.20 million. 

Conclusion?

Readers can make their own conclusion.

CEO Telekom Malaysia, Zamzamzairani
CEO Telekom Malaysia, Zamzamzairani.
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