KUALA LUMPUR: Telekom Malaysia Bhd’s (TM) net profit shrank by half to RM152.52 mil in the first quarter ended March 31 from RM308.28 mil in the same period last year.
This came on the back of an 8% fall in revenue to RM2.56 bil as all lines of products posted lower contributions, the company said.
“The reduction in revenue led to the group recording lower operating profits before finance cost of RM321.6 mil, a 36.4% (RM184 mil) decrease from RM505.6 mil in 1Q19,” TM said in a filing with Bursa Malaysia today.
On segmental performance, TM said unifi’s revenue eased from RM1.23 bil to RM1.12 bil in 1Q20 due to a reduction in voice services that happened for two reasons: smaller customer base and reduced charges for Internet and multimedia services from September 2019.
Meanwhile, TM ONE, which is TM’s enterprise and public sector business solutions arm, recorded a 4.6% drop in revenue from RM1.01 bil to RM960 mil mainly due to lower cumulative customer base for voice and data services compared to a year ago.
On TM Wholesale, the country’s largest fixed and mobile backhaul provider, TM said its revenue fell to RM509.3 mil in 1Q20 from RM578.1 mil a year earlier mainly due to lower revenue from voice services amid lower international traffic exchange.
“While there are many uncertainties as the (Covid-19) crisis is still unfolding, TM is committed to maintain business profitability, leveraging on new avenues at the onset of a ‘new normal’ and adapting to the new challenges.
“The group continues to monitor the current situation closely and will take appropriate actions accordingly to mitigate the impact of the pandemic on its businesses,” TM said. – May 20, 2020, Bernama
