TELEKOM Malaysia Bhd (TM) has set an ambitious target of breaching the RM3 billion revenue mark in the first quarter of financial year 2018, said managing director and group chief executive officer Datuk Seri Mohammed Shazalli Ramly.
Shazalli, who was appointed to helm TM on May 1, said he was confident the company would be able to achieve the target based on the existing solid business foundation to support its going digital positions.
“It is important to sustain the growth momentum that TM
is currently on amid this
challenging time experienced
by telecommunications companies.
“I would not do any different from the business plan that has been put forward by the management team,” he said during a first-quarter financial result briefing, here, yesterday.
TM posted a revenue of RM2.96 billion in the first quarter of financial year 2017, a 3.8 per cent rise compared with RM2.86 billion in the same period a year ago.
Net profit dropped 28.5 per cent to RM230.43 million from RM322.44 million previously.
In a filing to Bursa Malaysia yesterday, TM said the net profit drop was due to the absence of any significant gains compared to the corresponding quarter last year.
For Q1 2017, there was a decrease in the group’s obligation on a put option over shares of webe held by non-controlling interest.
“This positive results for the quarter are testament of the strong foundation and momentum TM has built under Tan Sri Zamzamzairani Mohd Isa.
“What Datuk Bazlan (TM executive director/deputy group chief executive officer) and I, together with our new management team, will bring to the table is a renewed zest to deliver on our business plan — to lead in going digital and be a champion of convergence,” said Shazalli.
TM group chief financial officer Nor Fadhilah Mohd Ali said based on the first quarter financial performance, the group was on track to meet its headline key performance indicators this year.
TM had targeted a 3.5 to four per cent growth in revenue and same level of profit growth as in the previous financial year for financial year 2017.
As for capital expenditure (capex), TM has spent 11.9 per cent of capex as a percentage of revenue in the first quarter amounting to RM352 million, mostly on major projects such as the High Speed Broadband
(HSBB) and Sub-Urban Broadband (SUBB).
Of total spent, 53 per cent was for access, 23 per cent for core network and 24 per cent for support system.