KUALA LUMPUR, Aug 24 — Telekom Malaysia Bhd (TM) posted a net profit of RM378.06 million in the second quarter ended June 30, 2022 (Q2), up 73 per cent from RM218.59 million in the previous corresponding quarter due to higher operating profit and lower net finance cost.

Group operating revenue grew by 11.8 per cent to RM3.09 billion in Q2 compared with RM2.76 billion previously, on a foundation of strong performance across every customer segment and a sharp increase in revenue from all lines of services, particularly Internet and Data.

Optimisation efforts enabled TM to record lower manpower and other operating expense costs, which led to higher earnings before interest and tax to RM702.7 million, up 81.3 per cent from RM387.6 million year-on-year.

TM also said it applied the 33 per cent Cukai Makmur statutory tax rate accordingly for the current quarter. In addition to group-wide cost optimisation initiatives, the revenue jump helped to drive an increase of free cash flow by 36.4 per cent to RM730.5 million year-on-year, putting the company in a solid position to make future investments and reduce debt further.

TM also declared an interim dividend of 9.0 sen per share.

The Dividend Reinvestment Scheme (DRS) is applicable for this dividend tranche to provide flexibility to shareholders, enabling participation into the group’s continuous growth momentum.

"At the mid-point of 2022, our financial performance and results demonstrate TM’s ability to manage our businesses effectively despite the headwinds arising from a challenging and competitive business environment. These results are also a powerful testament to our transformation journey, and our commitment to deliver a sustainable and inclusive Digital Malaysia,” TM Group chief executive officer Imri Mokhtar said in a statement today.

He said unifi will continue its trajectory to provide converged solutions to both residential and SME (small and medium enterprise) customers. unifi Business, specifically, will double down on its efforts to provide new propositions to engage SME customers including promotional campaigns and financing options.

For the first six months, TM’s net profit stood at RM717.91 million against RM544.06 million previously, while revenue rose to RM5.98 billion versus RM5.57 billion before.

TM welcomes government’s call for industry to take up stake in DNB "Looking ahead, 5G will level the playing field and move the industry away from network based to service-based competition. TM welcomes the government’s call for the industry to take up equity stakes in Digital National Bhd (DNB).” Imri said 5G will open up and expand the opportunities and growth areas for all of TM’s business segments — consumers, SMEs, enterprises, wholesale, as well as digital services.

"We look forward to rolling out 5G-enabled products and solutions and unlocking value to meet customers’ demands.

"As Malaysia’s convergence champion, we believe 5G will strengthen our convergence proposition, and our customers will be encouraged to transition to 5G in the near term.

"Ultimately, TM’s growth and differentiation, whether in 5G, fixed broadband or digitalisation, will hinge on creating and offering exceptional customer experience as we continue on our evolution towards becoming a human-centred technology company.” — Bernama