Telekom Malaysia's 3Q net profit dips 12% to RM166.87m on forex exchange loss

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KUALA LUMPUR (Nov 26): Telekom Malaysia Bhd (TM)'s net profit for the third quarter ended Sept 30, 2015 fell 12% to RM166.87 million, from RM188.85 million a year earlier, despite posting a higher revenue of RM2.92 billion versus RM2.64 billion a year earlier.

Earnings per share fell to 4.44 sen, from 5.13 sen a year earlier.

For the nine months ended Sept 30, TM’s net profit dipped to RM507.85 million, from RM613.51 million, on revenue RM8.54 billion versus RM8.08 billion a year earlier.

In a filing with the exchange this afternoon, TM said the decline in the net profit was due mainly to foreign exchange losses from borrowings and consolidation of operational losses from Packet One Networks (Malaysia) Sdn Bhd.

On its prospects, TM said its outlook for the remaining months in 2015 continues to remain positive, with its UniFi still enjoying take up as the unitility giant proceeds with the expansion of our high speed broadband (HSBB) coverage.

“TM remains dedicated in providing more value and enhanced HyppTV viewing experience to our broadband customers.

“As of October 2015, HyppTV has a total of 122 channels, 57 Premium channels, 22 Basic and Free-To-Air channels, 5 radio channels, 14 Video-on-Demand (VOD) categories and 24 interactive channels.

“We remain steadfast in our commitment towards becoming Malaysia’s Convergence Champion. We will continue to be guided by our “Information and Innovation Exchange” aspirations, as we carry on with our transformation journey, in line with our promise of ‘Life Made Easier’ and ‘Business Made Easier’ with TM,” it said.

At 12.30pm, TM shed 0.30% or 2 sen to RM6.58, with 531,400 shares traded.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)