31 March 2020, Tuesday | 01:24am

TM posts net loss of RM51.09 mln in Q4, forging ahead for 5G

2020-02-21

KUALA LUMPUR, Feb 21 -- Telekom Malaysia Bhd (TM) posted a net loss of RM51.09 million for the fourth quarter of 2019 as compared with RM69.65 net profit the previous year due to a one-off RM233.7 million fair value adjustment on medium-term notes issued by a non-controlling interest of a unit.

Revenue was also lower at RM3.03 billion versus RM3.08 billion previously.

“The year 2019 has been a transformative period for TM as we continue to adjust to new market dynamics and declining revenue from traditional segments whilst at the same time preparing for the next leap in telecommunications into 5G,” group chief executive officer Datuk Noor Kamarul Anuar Nuruddin said.

 Against this backdrop, TM has seen continued improvements in its fundamentals despite the revenue challenges on the retail front, he said in a statement here today.

“Our performance improvement initiatives continued to bear fruit, especially on cost,” he said.

For the full year, TM posted a higher net profit of RM632.67 million as compared with RM153.15 million in 2018, while revenue stood at RM11.43 billion versus RM11.81 billion previously.

As the industry gears up for the next wave of infrastructure investments to support 5G use cases, TM is forging ahead in positioning itself as the National Telecommunications Infrastructure Provider (NTIP) for 5G (InfraCo) and the primary enabler to the National Fiberisation and Connectivity Plan (NFCP) towards accelerating the deployment of 5G and making way for an era of shared 5G networks, he said.

“This is where, in our opinion, co-building and co-sharing infrastructure with other telco players, as well as collaborating with emerging industry players for digital solutions, is the best way to move forward.

“Strong partnerships will generate significant capital and operating expenditure (CAPEX) savings, extend coverage at lower costs, achieve faster 5G rollout, and optimise resource utilisation. It will allow telcos to deliver competitive, high-quality and affordable products and services to the Rakyat,” he said.

Going forward, the group expects the industry to continue to adjust to new market dynamics and declining revenue from traditional segments while preparing for the next leap in telecommunications into 5G.

TM is forging ahead in positioning itself as the National Telecommunications Infrastructure Provider for 5G and enabler to the National Fiberisation and Connectivity Plan (NFCP). This will fulfil the country’s aspiration towards Industrial Revolution 4.0 and a Digital Malaysia.

TM declared a final interim single-tier cash dividend of 10.0 sen per share or RM376.6 million for the 2019 financial year. The expected payout date is April 3, 2020.

At 2.58 pm, TM shares were down three sen at RM3.86 with 1.78 million shares transacted.

Source: BERNAMA

 

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