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KUALA LUMPUR – Telekom Malaysia Bhd’s (TM) net profit for the first quarter (Q1) ended March 31, 2022, jumped 4.4% to RM339.85 million from RM325.47 million recorded in the same quarter last year.
Strong demand for voice, internet, and multimedia translated to a 2.9% increase, or RM2.89 billion in operating revenue, compared to RM2.81 billion previously, the group said in a filing with Bursa Malaysia yesterday.
“Reported profit after tax and minority interests for Q1 increased 4.4% as a result of lower finance cost from early redemption of RM2 billion sukuk completed in 1Q2021, as well as lower foreign exchange translation loss on borrowings.
“This was achieved despite higher tax charges from the application of the cukai makmur tax rate,” it said.
The telecommunications giant shared that its transformation expenses such as manpower optimisation, coupled with foreign exchange impact on trade settlements, contributed to lower earnings before interest and taxes by 5.0%, from RM589.7 million to RM560.4 million.
It has invested 12.5% of revenue in capital expenditure (capex) amounting to RM361.2 million for fibre coverage expansion, core network upgrade and support systems.
It has also experienced an improved cash flow from operations in Q1, as a result of cost-savings initiatives.
“Free cash flow, however, is lower by 15.1%, at RM658.8 million, compared to RM775.7 million due to RM114.2 million higher in capex as the group continues to invest in meeting customers’ expectations and network delivery,” said TM.
Meanwhile, in a separate statement released following TM’s 37th annual general meeting, group managing director and chief executive officer Imri Mokhtar said 2021 saw a milestone in its first-year transformation.
He said the group has set a solid foundation as a growth-oriented public limited company investing for optimum long-term returns for its shareholders, while also continuing its nation-building efforts to realise a truly digital Malaysia.
“In 2022, we aim to continue growing our operating revenue by strengthening our core business momentum to improve profitability, enabling us to invest for future growth.
“While improving connectivity and digitisation solutions to enable a better Malaysia, the human factor remains the true centre of TM’s growth agenda, as the company’s aspiration is to evolve towards becoming a human-centred technology company,” said Imri. – Bernama, May 26, 2022