KUALA LUMPUR (Aug 27): Telekom Malaysia Bhd (TM) announced today its second quarter net profit fell 20.44% to RM218.59 million from RM274.75 million a year earlier, citing an increase in operating costs which included provisions recognised as part of the group's manpower optimisation initiatives.
Foreign exchange loss on borrowings also led to lower net profit in the second quarter ended June 30, 2021 (2QFY21).
In a statement to Bursa Malaysia today, TM said 2QFY21 revenue however rose to RM2.76 billion from RM2.59 billion, helped by the "increase in revenue for all services apart from non-telecommunication related services".
For 1HFY21, TM recorded an increase in net profit to RM544.06 million from RM427.27 million a year earlier as revenue rose to RM5.57 billion from RM5.15 billion.
For 2QFY21, TM declared a dividend of seven a share.
TM's 2QFY21 net profit and revenue fell in quarterly terms. TM said 2QFY21 net profit decreased 32.9% to RM218.59 million "due to the increase in operating cost which included provisions recognised as part of the group's manpower optimisation initiatives".
According to TM, 2QFY21 revenue declined 1.7% to RM2.76 billion "with declines in data, other telecommunication and non-telecommunication services which were affected by stricter Movement Control Order put in place in the current quarter ended".
"(Looking ahead) we remain steadfast in our efforts to realise the national digital aspirations. Based on the current performance momentum, the group is on track to achieve its 2021 targets," TM said, without specifying in its quarterly financial report what the company's targets are for FY21.
At Bursa's 12.30pm break today, TM's share price settled up one sen or 0.17% at RM6.06 with a market capitalisation of about RM22.85 billion.
TM has 3.77 billion issued shares, according to its quarterly financial report.
In a separate Bursa filing today, TM said its seven sen a share dividend will be paid on Sept 30, 2021.
TM said the ex-date for dividend falls on Sept 13, 2021.