Friday 29 Mar 2024
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KUALA LUMPUR (Feb 26): Telekom Malaysia Bhd (TM) has set itself more cautious targets for revenue and earnings growth for financial year ending Dec 31, 2015 (FY15), in anticipation of a tougher operating environment.

The telecommunications giant is aiming for a 4% to 4.5% growth in both revenue and earnings before interest and tax (EBIT) for FY15.

However, these targets exclude contributions from Packet One Networks (M) Sdn Bhd (P1), which TM had acquired a majority stake in March last year, as P1 is "still undergoing transformation".

As a comparison, TM (fundamental: 1.1; valuation: 0.9) had aimed for a 5% to 5.5% growth in revenue and a 5% growth in EBIT for FY14. Both targets were achieved last year.

TM's group chief executive officer Tan Sri Zamzamzairani Mohd Isa said competition among telco firms will squeeze profit margins and growth, and the headline key performance index for the year is a reflection of their "cautiously optimistic" stance in the market.

However, he added TM is still well-positioned for growth and would still focus on its ongoing efforts to become a "convergence champion".

(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.)

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