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TM posts lower Q1 net profit on forex losses

Posted on: May 30, 2009

Bernama – Saturday, May 23

KUALA LUMPUR, May 22 (Bernama) — Telekom Malaysia Bhd (TM) posted a profit after tax and minority interest (PATAMI) of RM27.7 million for its first quarter ended March 31, 2009, down from RM114.4 million in the previous corresponding period.

“The lower net profit was mainly atributed to higher unrealised exchange loss of RM175.5 million on TM’s US dollar long-term borrowings arising from the ringgit depreciation against the US dollar,” its group chief financial officer Datuk Bazlan Osman said today.

The ringgit has depreciated from 3.45 in fourth quarter 2008 to 3.64 in first quarter 2009 against the US dollar.

Bazlan said the group PATAMI of RM114.4 million for the corresponding quarter in 2008 as mentioned in the review of performance was referring to the PATAMI of continuing operations (i.e. TM Group excluding the contribution from Axiata which was demerged from TM Group on April 2008). He said it was not meaningful to compare the current quarter PATAMI of RM27.7 million against that of RM519.7 million for first quarter 2008 as reflected in the income statement because there was no contribution from Axiata in first quarter 2009 whereas RM519.7 million included the contribution of Axiata. In a statement yesterday, TM said it recorded a lower pre-tax profit of RM91.322 million for its first quarter ended March 31, 2009,compared with RM109.248 million in the corresponding quarter of last year.

Its revenue, however, rose by five percent to RM2.105 billion from RM2.006 billion previously.

The company attributed the growth to non-voice products and services.

Internet, data, leased and other telecommunication related services combined to contribute 50.9 percent of the group’s total revenue for the quarter.

TM also maintained its leadership position in the broadband market and continued to sustain the momentum with a strong year-on-year customer growth of 24.9 percent over the last 12 months ending March 2009.

Its Streamyx customer base grew to 1.333 million (excluding Hotspot customers) as compared to 1.067 million as at end-March last year.

“We are pleased to note that we have been able to continue improving our efficiency. Our strong focus on cost optimisation and capital expenditure efficiency has helped us keep our cost management on track,” said its group chief executive officer Datuk Zamzamzairani Mohd Isa.

He said moving forward, growth in broadband is expected to remain strong as the household penetration rate had only surpassed 21.1 percent in the fourth quarter of last year.

The introduction of new wireless broadband technologies such as HSDPA (High Speed Downlink Packet Access) and WiMAX (Worldwide interoperability for Microwave Access) is expected to increase the demand for broadband, he said.

In anticipation of this, Zamzamzairani said TM has embarked on various initiatives to improve its broadband customer service and service offerings such as the introduction of Streamyx Combo Goes Mobile and Steamyx value-added packages.

On the High Speed Broadband (HSBB) project, TM is executing the project as planned.

In April, the wholesale service of HSBB (Transmission) was made available to access seekers through published terms and conditions in the company’s website.

TM secured its first wholesale HSBB customer with the signing of a Wholesale Ethernet Service Agreement with Wi-Net Technology Sdn Bhd on Wednesday.

With this agreement, TM will be the key service provider to Wi-Net in the setting up of its network and coverage for the delivery of wireless broadband access services to end users.

Wi-Net will leverage on TM’s existing Wholesale Ethernet service and HSBB network. — BERNAMA


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