KUALA LUMPUR: Telekom Malaysia Bhd's (TM) net profit jumped two fold to RM538.19 million in the third quarter ended Sept 30, 2023 (3Q23) from RM265.2 million a year ago.
This was on the back of lower net finance costs and the recognition of tax credits from the utilisation of previously unrecognised tax losses, the telecommunications group said in a filing to Bursa Malaysia.
Quarterly revenue, however, fell 2.3 per cent to RM3.08 billion from RM3.16 billion previously, mainly from a decrease in voice, data and other telecommunication-related services.
The group registered higher earnings per share of 14.08 sen compared to 7.01 sen in 3Q22. For the nine months ended on Sept 30, 2023 (9MFY23), TM's net profit increased to RM1.44 billion from RM983.11 million a year ago, while revenue declined to RM9.13 billion from RM9.14 billion.
According to TM, the strong performance of two of TM's lines of business, Unifi and TM Global played a pivotal role in this growth.
Unifi's fixed broadband subscription increased 4.6 per cent reaching 3.12 million, while TM Global's revenue increased due to heightened demand for both domestic and international data services. The group's year-to-date (YTD) capital expenditure (capex) investment stood at RM1.38 billion or 15.1 per cent of the overall revenue.
TM noted that this strategic allocation of resources is directed towards the nationwide network infrastructure expansion and enhancement of its regional submarine cable system.
Commenting on the performance, TM group chief executive officer Amar Huzaimi Md Deris said the group's commitment to advancing quad-play convergence services, coupled with the introduction of attractive and competitive packages, enabled the group to retain and expand its customer base, solidifying its portfolio as the true convergence champion.
"Our relentless pursuit of improving mobile coverage nationwide aligns with our dedication to inclusivity, bridging the digital divide, and fostering widespread digital adoption.
"By ensuring our services are accessible to all, we contribute to creating a more connected and inclusive society.
"Simultaneously, our aggressive expansion of data and network infrastructure is strategically positioned to meet the growing demands of our domestic market and attract more international players," he said in a statement.
Moving into the last quarter of the year, TM said its business and financial outlook for 2023 remains positive. The group said it will continue to pursue industry growth through digitalisation and emerging technologies that empower communities, businesses, and the government to maximise shareholders' value.
"Based on TM's current performance momentum, the group is on track to achieve its 2023 market guidance," it added.