Update TM 2Q profit up marginally to RM214 million on higher Internet, multimedia revenue

by **Cals** Wed 27 Aug 2014, 23:15

Update TM 2Q profit up marginally to RM214 million on higher Internet, multimedia revenue

Business & Markets 2014

Written by Gho Chee Yuan of theedgemalaysia.com

Wednesday, 27 August 2014 14:35

KUALA LUMPUR (Aug 27): Telekom Malaysia Bhd (TM) net profit rose by a marginal 0.09% to RM214.03 million for the second quarter ended June 30, 2014 (2QFY14) from RM213.84 million a year earlier.

TM told Bursa Malaysia today profit growth came on higher Internet and multimedia revenue besides lower net finance cost.

TM said revenue grew to RM2.82 billion from RM2.61 billion on higher revenue from Internet and multimedia, data and other telecommunications related services which mitigated the decline in voice and non-telecommunication related services.

For the quarter, TM has proposed a single-tier interim dividend of 9.5 sen a share.

During 1HFY14, TM's net profit dropped to RM424.66 million from RM427.1 million a year earlier due to higher taxes charge, which was partially offset by lower net finance cost.

Revenue, however, increased to RM5.44 billion compared to RM5.04 billion.

Commenting on the 1HFY14 financial results, TM Group CEO Tan Sri Zamzamzairani Mohd Isa said the continued growth affirmed the progress of the company's current and past marketing, operational and financial initiatives, which were well planned and executed.

"Our capital expenditure (capex) and revenue ratio was also reduced to 10% from 12.5% a year earlier," Zamzamzairani said.

Total capex spent for 1HFY14 was RM545 million.

"We have also identified key areas which are pivotal to our continued growth and are pleased to see that our performance has justified our focused efforts in those segments," he said.