KUALA LUMPUR: Strong take-up for its high-speed broadband (HSBB) service helped Telekom Malaysia Bhd’s (TM) topline for the third quarter ended Sept 30 grow 5.8% year-on-year to RM2.32 billion, but earnings were hit as carrying cost for its US dollar debt went up with a stronger greenback.
Net profit for 3QFY11 fell 31.1% to RM302.1 million from RM438.49 million, primarily due to a RM122.5 million unrealised foreign exchange (forex) loss on translation of its US dollar-denominated borrowings versus a RM139 million translated gain in the same quarter last year.
For the nine months ended Sept 30, net profit was down 26.5% to RM592.67 million, even as revenue rose 3.6% to RM6.7 billion, with the booking of a RM73 million forex translation loss on its borrowings compared to a RM319.5 million gain before.
Operational numbers were also distorted by the booking of a RM283.5 million one-off gain on disposal of its shares in Axiata Group Bhd in 3QFY11, more than the RM152.3 million gain it booked in 3QFY10 on the sale of Axiata and Measat Group Bhd shares.
In a statement yesterday, TM said its profits for 9MFY11 would have grown 21.3% to RM394.7 million from RM325.3 million a year ago excluding the one-off items. Similarly, normalised profits for 3QFY11 was RM137.3 million, up 8.8% y-o-y.
“We are encouraged by the continued steady progress this year in all aspects of performance and operations for all periods under review, stripping out exceptional items,” its group CEO Datuk Seri Zamzamzairani Mohd Isa said in a statement. “I’m pleased to note that our total return to shareholders continue to be above industry peer average at 31% for the nine-month period.”
No dividend was declared for the quarter, but TM noted that it was in a strong cash position with RM3.3 billion in the kitty. TM has committed to pay at least RM700 million or up to 90% of its profits to shareholders as dividend. TM had declared 9.8 sen per share dividend year-to-date, down from 13 sen per share the same period last year.
In notes accompanying its accounts, TM said broadband and data would continue to be its key growth area. Internet and multimedia services registered a higher revenue of 26.1% y-o-y to RM518.5 million, as a result of an increase in its broadband customers from 1.6 million to 1.7 million. Its HSBB offering UniFi had 164,375 customers in 3Q11, up 55,356 customers from 109,019 customers in 2Q11.
“TM will continue to strengthen its market leadership in HSBB, and is poised to close the year with more than 202,000 UniFi customers, while continuing to service 1.71 million Streamyx customers,” it said.
It is also on track to have a total of 78 exchange areas being served by UniFi, with 1.1 million premises passed by year-end. “As at Nov 21, we have activated more than 202,000 customers on the back of more than 1,096,000 premises passed,” TM said, adding that UniFi’s take-up far exceeds the 8% to 10% expected for the first two years.
“We saw the run rate increased to more than 18,000 customers a month on average in 3Q and today, we are seeing an average of over 23,000 new subscriptions per month,” it added.
TM aims to pass 1.3 million premises covering 95 exchange areas by end-2012. Its shares added 22 sen or 5.21% to RM4.44 yesterday.
This article appeared in The Edge Financial Daily, November 25, 2011.
Net profit for 3QFY11 fell 31.1% to RM302.1 million from RM438.49 million, primarily due to a RM122.5 million unrealised foreign exchange (forex) loss on translation of its US dollar-denominated borrowings versus a RM139 million translated gain in the same quarter last year.
For the nine months ended Sept 30, net profit was down 26.5% to RM592.67 million, even as revenue rose 3.6% to RM6.7 billion, with the booking of a RM73 million forex translation loss on its borrowings compared to a RM319.5 million gain before.
Operational numbers were also distorted by the booking of a RM283.5 million one-off gain on disposal of its shares in Axiata Group Bhd in 3QFY11, more than the RM152.3 million gain it booked in 3QFY10 on the sale of Axiata and Measat Group Bhd shares.
In a statement yesterday, TM said its profits for 9MFY11 would have grown 21.3% to RM394.7 million from RM325.3 million a year ago excluding the one-off items. Similarly, normalised profits for 3QFY11 was RM137.3 million, up 8.8% y-o-y.
“We are encouraged by the continued steady progress this year in all aspects of performance and operations for all periods under review, stripping out exceptional items,” its group CEO Datuk Seri Zamzamzairani Mohd Isa said in a statement. “I’m pleased to note that our total return to shareholders continue to be above industry peer average at 31% for the nine-month period.”
No dividend was declared for the quarter, but TM noted that it was in a strong cash position with RM3.3 billion in the kitty. TM has committed to pay at least RM700 million or up to 90% of its profits to shareholders as dividend. TM had declared 9.8 sen per share dividend year-to-date, down from 13 sen per share the same period last year.
In notes accompanying its accounts, TM said broadband and data would continue to be its key growth area. Internet and multimedia services registered a higher revenue of 26.1% y-o-y to RM518.5 million, as a result of an increase in its broadband customers from 1.6 million to 1.7 million. Its HSBB offering UniFi had 164,375 customers in 3Q11, up 55,356 customers from 109,019 customers in 2Q11.
“TM will continue to strengthen its market leadership in HSBB, and is poised to close the year with more than 202,000 UniFi customers, while continuing to service 1.71 million Streamyx customers,” it said.
It is also on track to have a total of 78 exchange areas being served by UniFi, with 1.1 million premises passed by year-end. “As at Nov 21, we have activated more than 202,000 customers on the back of more than 1,096,000 premises passed,” TM said, adding that UniFi’s take-up far exceeds the 8% to 10% expected for the first two years.
“We saw the run rate increased to more than 18,000 customers a month on average in 3Q and today, we are seeing an average of over 23,000 new subscriptions per month,” it added.
TM aims to pass 1.3 million premises covering 95 exchange areas by end-2012. Its shares added 22 sen or 5.21% to RM4.44 yesterday.
This article appeared in The Edge Financial Daily, November 25, 2011.
