Kuala Lumpur:
Telekom Malaysia Bhd ™ recorded a net profit of RM274.74 million its second quarter ended June 30, 2020 (Q2), up from RM114.18 million in the same quarter a year ago, due to lower operating cost and no impairment loss on fixed network assets were made.Revenue for the quarter slipped 6.4 per cent to RM2.59 billion from RM2.77 billion previously, with a decline in revenue for all lines of products except for data services reflective of impact from the Streamyx price adjustments effective from September of the previous financial year. Revenue also took the hit from lower volume and restricted economic activities during the Movement Control Order (MCO), it said in a filing to Bursa Malaysia here, Thursday.
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It declared an interim dividend of 6.8 sen per share amounting to RM256.1 million. In the first half of 2020, the company invested 9.3 per cent of revenue for capital expenditure amounting to RM479.2 million - in line with guidance - focusing on broadband, data and mobile services to maintain service quality and availability nationwide, it said. Of the amount invested, 59 per cent was for network access, 23 per cent for core network, and the balance of 18 per cent for support system, it said in a separate statement.
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The Group continues to provide services to the nation amidst the uncertainty created by the Covid-19 pandemic. Since mid-May 2020, TM has resumed its on-the-ground sales activities together with service installation and restoration activities at customer premises. TMpoint outlets nationwide have since reopened at full normal hours. “We will continue to provide the best service and experience for our customers in the remaining quarters of 2020 as more sectors of the economy open up with less restrictions under the Recovery Movement Control Order (RMCO),” TM Group Chief Executive Officer, Imri Mokhtar, said. He said the group would continue its commitment in maintaining business profitability for the coming quarters of 2020. For the first-half year, net profit was slightly higher at RM427.27 million versus RM422.46 million, while revenue stood at RM5.15 billion against RM5.55 billion in the corresponding period last year.
