Telekom Malaysia (TM) announced its second quarter 2020 (2Q20) financial results yesterday. The largest fixed broadband company in Malaysia reported a total of 2.23 million broadband subscribers. It added 43k new broadband subscriptions in 2Q20, from 2.18 million it had as of 1Q20.
For Unifi fibre broadband services, Telekom Malaysia now has 1.55 million customers in 2Q20, up from 1.49 million it had as of 1Q20. It added 61k new Unifi fibre broadband customers between April, June and July 2020.
For Streamyx, there are now 676,000 Asymmetric digital subscriber line (ADSL) customers nationwide. It lost some 18k customers in 2Q20, from 694,000 Streamyx customers it had in 1Q20.
As for APRU, Unifi customers spent an average RM150/month (-RM3) while Streamyx was at RM90/month (-RM1) in 2Q20.
The Telecommunication service provider did not disclose the latest number of its Unifi mobile subscriber base. Last month, it was reported that it had over 1 million Unifi Mobile subscribers.
During the Movement Control Order (MCO) period, TM said its network remained stable in handling a 39% increase of overall traffic, “as a result of continuous network optimisation,”
2Q2020 QoQ Key Financial and Operational Highlights 2Q2020 (according to Telekom Malaysia):
- Group Revenue grew 1.4% to RM2.59 billion from RM2.56 billion recorded in 1Q2020.
- Group Reported Earnings Before Interest and Tax (EBIT) increased by 30.7% QoQ to RM426.3 million, from RM326.1 million in 1Q2020.
- Group Reported Profit After Tax and Non-controlling Interests (PATAMI) rose 80.1% QoQ to RM274.7 million compared to RM152.5 million.
- The total capital expenditure (capex) Year-to-Date (YTD) stood at 9.3% of revenue or RM479.2 million.
- Declares maximum interim dividend of 6.8 sen per share totalling RM256.1 million.
Despite the increasingly challenging operating environment and early consequences of the Covid19 pandemic, Telekom Malaysia (TM) said its Group Revenue grew 1.4% to RM2.59 billion from RM2.56 billion recorded in 1Q2020 despite the full quarter impact of Movement Control Order (MCO), with higher revenue from voice and data services.
Group Reported Earnings Before Interest and Tax (EBIT) for 2Q2020 increased by 30.7% QoQ to RM426.3 million, from RM326.1 million in 1Q2020, on the back of lower operating cost, from the Group’s continued cost optimisation programmes. Consequently, the Group’s Reported Profit After Tax and Non-controlling Interests (PATAMI) rose 80.1% QoQ to RM274.7 million compared to RM152.5 million.
In the first half of 2020, the company invested 9.3% of revenue for capex amounting to RM479.2 million – in line with guidance – focusing on broadband, data and mobile services to maintain service quality and availability nationwide. Of the amount invested, 59% was for network access, 23% for core network, and the balance 18% for support system.
Imri Mokhtar, the newly appointed Group Chief Executive Officer of TM said, “I’m pleased to report a resilient quarter-on-quarter performance in these challenging times. We continued to maintain our commercial momentum supported by a proactive and well-coordinated business continuity management focus to meet our operational and customer needs. However, we did face delivery delays in our services to customers as we adhered to the MCO Standard Operating Procedures (SOPs). To mitigate the impact of the Covid-19 pandemic on our business, we will continue to actively evaluate various ways to meet our performance targets whilst optimising costs and capex across our operations. We have started to arrest the decline and we are positive that our cost optimisation initiatives will continue to bear fruit, translating into positive margins for the Group.
TM has fully resumed our business operations and on ground sales activities to provide quality service and experience for our customers. Our unifi subscribers recorded positive growth from more Malaysians working from home whilst TM Wholesale continues to see higher international and domestic revenue. TM ONE further cemented its leadership position with our end-to-end cloud offerings. In the meantime, we remain well positioned to lead in the Industrial Revolution 4.0 (IR4.0) towards enabling a more Digital Malaysia,” Imri concluded.