Monday, August 23, 2010

#Flash* Telekom Malaysia's 2Q earnings down 53.2% to RM124.38m

KUALA LUMPUR: TELEKOM MALAYSIA BHD [] posted net profit of RM124.38 million in the second quarter ended June 30, down 53.2% from RM265.97 million a year ago.

TM said on Monday, Aug 23 the lower earnings were mainly due to lower other operating income and lower unrealized exchange gain on translation of foreign currency borrowings of RM18.1 million as compared to RM123.2 million a year ago.

Revenue was RM2.15 billion, just up 1% compared with RM2.13 billion. Earnings per share were 3.50 sen versus 7.6 sen. It declared an interim dividend of 13 sen per share.

The marginal increase in revenue was due to higher revenue from data and Internet and multimedia, which mitigated the impact of lower voice revenue due to lower usage.

'Data revenue increased by 14.5% in second quarter to RM424.9 million compared to RM371.0 million in the same quarter 2009 arising from demand for higher bandwidth services.

'Internet and multimedia revenue registered 7.5% growth from RM401.6 million recorded in second quarter 2009 to RM431.6 million in the current quarter arising from growth in broadband customers to 1.54 million in the current quarter from 1.37 million in the corresponding quarter 2009,' it said.

Operating profit before finance cost of RM212.4 million decreased by 27.5% compared to RM293.0 million recorded in the same quarter last year primarily due to lower gain on disposal of quoted investment in current year quarter and absence of gain on disposal of Axiata's rights (RM66.0 million) recorded in second quarter last year.

TM's EBITDA margin continued to slide from 32.4% in the first half ended June 3 from 37.7% in the previous corresponding period due to higher Unifi or high speed broadband costs.

Group chief executive officer Datuk Seri Zamzamzairani Mohd Isa said that TM is targeting to hit 40,000 to 50,000 new Unifi subscribers by year end from its current 4800 since launching last March. Already, he said it is hitting 300 sales a day and have 12000 orders outstanding as of last week.


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