KUALA LUMPUR: Telekom Malaysia Bhd (TM) reported a 22% drop in its third-quarter net profit on higher operating cost and taxes, which were partially offset by lower net finance cost.

In a statement yesterday, TM said net profit fell to RM188.85 million in the third quarter ended Sept 30, 2014 (3QFY14), from RM240.88 million a year ago.

Revenue was, however, higher at RM2.64 billion versus RM2.61 billion in 3QFY13, mainly due to higher revenue from Internet, multimedia and other telecommunications-related services, which mitigated the decline in data and voice.

TM said its other telecommunications-related services comprise projects undertaken for its customers.

According to TM, subscribers to its Internet and multimedia services under the UniFi brand have risen to 699,822 from 607,377 a year earlier.

For the nine-month period (9MFY14), its net profit fell to RM613.51 million from RM667.97 million a year ago. Revenue, however, rose to RM8.08 billion from RM7.65 billion in 9MFY13.

Looking ahead, TM’s broadband and data services are seen as growth drivers of the company.

TM said its FY14 outlook remained positive as it had consistently focused on both segments.

This article first appeared in The Edge Financial Daily, on November 27, 2014.