TM's 2Q net profit down 52% on lower data services

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KUALA LUMPUR (Aug 29): Telekom Malaysia Bhd’s (TM) net profit fell 52% in the second quarter ended June 30, 2018 (2QFY18) to RM101.93 million, from RM210.48 million a year ago, on lower earnings from its voice and data services.

This resulted in a lower earnings per share of 2.71 sen, compared with 5.6 sen for 2QFY17.

In a filing with Bursa Malaysia today, TM said the fall in voice and data services' profits was affected by the provision recognised for reduction in revenue in view of regulatory mandated access pricing.

Quarterly revenue also slipped 1.5% to RM2.94 billion, versus RM2.98 billion a year ago.

Nonetheless, it said revenue for its Unifi segment increased 0.5% in the current quarter, mainly due to higher cumulative Unifi for home and SMEs.

TM's customer base was at 1.19 million as at end of 2QFY18, as compared with 986,957 as at end of the corresponding quarter last year, it said.

For the first half (1HFY18), the group's net profit was lower by 41% at RM259.09 million, from RM440.92 million a year ago, while revenue was lower by 3% at RM5.78 billion, from RM5.94 billion in 1HFY17.

“The first six months of 2018 has been very challenging for us, from rapid developments in the market to increasing regulatory pressures. Given the current landscape, these events further add challenges to our financial performance,” TM acting group chief executive officer Datuk Bazlan Osman said in a separate statement.

TM said it anticipates the challenging environment to persist for both its retail and wholesale segments.

“In the midst of these challenges, TM will continue our focus towards strengthening performance of our core business and operations,” the filing added.

TM shares closed down two sen or 0.56% to RM3.57 today, with 1.46 million shares traded, for a market value of RM13.42 billion.