TM’s 3Q net profit eases 2.2% due to forex loss on borrowings, higher tax rate

TM’s 3Q net profit eases 2.2% due to forex loss on borrowings, higher tax rate
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KUALA LUMPUR (Nov 22): Telekom Malaysia Bhd’s net profit for the third quarter ended Sept 30, 2022 (3QFY22) fell slightly as foreign exchange loss on borrowings and higher effective tax rate due to the Cukai Makmur weighed on its profitability.

The net profit fell 2.2% to RM265.20 million, from RM271.21 million a year ago, despite quarterly revenue growing 13% to RM3.16 billion from RM2.80 billion, according to the group’s bourse filing.

TM attributed the higher revenue to an improvement in its wholesale, broadband and enterprise solution businesses.

For the first nine months of the year (9MFY22), TM’s net profit grew 21% to RM983.11 million from RM815.27 million in the previous corresponding period, while revenue grew 9.1% to RM9.14 billion from RM8.37 billion.

TM group chief executive officer Imri Mokhtar said the group’s growth momentum is expected to continue for the rest of 2022, from core business segments like broadband, enterprise solutions and wholesale businesses.

“We shall continue to invest in our technology capabilities, new growth areas of FMC (fixed-mobile converged) and digital solutions, and in building capacity and digital talents within TM, while staying focused on growing with our customers, as well as continuing our operations cost discipline,” he said.

“Competition in FMC and the digital space is intensifying. We are strengthening our mobile business with the right strategy and capabilities to take TM into an era of true convergence,” Imri added.

Imri sees 2022 as the year to build TM’s commercial resiliency to face the anticipated headwinds in 2023, such as the easing of economic growth, high supply chain cost and more measured customer spending.

Shares of TM closed four sen or 0.73% lower at RM5.45 on Tuesday (Nov 22), giving the group a market capitalisation of RM20.82 billion.

S Kanagaraju