TM Reports Healthy Six Months Results

Telekom Malaysia Bhd (TM) reported RM293.7 million in net profit for the half-year ended June 30, 2009, up 28.2 per cent from RM229.1 million (not incorporating Axiata's contribution) posted in the corrresponding period last year.

Axiata Group Bhd formerly known as TM International Bhd was de-merged from TM since April 2008.

TM recorded a revenue growth of RM4.23 billion, up 2.9 per cent when compared with RM4.11 billion recorded in the same period last year. Group Chief Executive Officer Datuk Zamzamzairani Mohd Isa, in announcing TM's first half results today said, the growth was led by non-voice revenue which contributed 51.9 per cent to group revenue.

" Despite the challenging economic environment and heavy competition, Internet and data contributed 13.3 per cent and 17.2 per cent growth respectively for the period under review," Zamzamzairani said.

He said TM also approved an interim tax-exempt dividend of 10 sen per share or about RM358 million to be paid to shareholders by end of September 2009 .... Duit Raya? :P

"With the interim dividend, TM is on track to meet its dividend commitment of RM700 million or up to 90 per cent of normalised profit after tax and minority interest (PATAMI), whichever is higher," he said.
Commenting further, Zamzamzairani said TM continues to lead the broadband market space with 1.370 million customers (excluding hotspot customers), a growth of 18.4 per cent from 1.20 million customers a year ago.

The country's broadband penetration rate had only surpassed 22.9 per cent in the first quarter of 2009. Therefore there is still room for growth," he said.
He said although the emergence of mobile and other wireless broadband technologies, would challenge TM's dominance in the Malaysian Internet access service market, TM expects the growth in broadband market to remain strong.
Meanwhile, he added, the improved revenue and cost management helped generate an earnings before tax, interest and depreciation of RM1.64 billion, an improvement of 17.3 per cent from RM1.398 billion recorded last year.
He also said TM's fixed line customers, both residential and business, have shown a positive growth of 0.7 per cent to 4.32 million from 4.29 million in first quarter of 2009. On capital expenditure, Zamzamzairani said, TM expects to spend about RM1.4 billion for this year.
On the high speed broadband project, he added that the commercial retail rollout was scheduled, for the first quarter 2010, in Taman Tun Dr Ismail, Bangsar, Subang Jaya and Shah Alam.

Elaborating further, he said, Internet Protocol Television (IPTV) would be launched next year with a capital expenditure of about RM350 million over the next three to four years. "We expect our business environment for the financial year ending December 31, 2009, to remain challenging. We expect to achieve our KPI target for the year," he said.