Telekom Malaysia Bhd (TM) recorded a 26% increase in net profit to RM329.4 million for the third quarter of the financial year ended 30 September 2020 (3QFY20) compared to RM261.3 million in the previous year following more home-based consumers.
However, its revenue for 3QFY20 decreased 5.7% to RM2.69 billion from RM2.85 billion in the same quarter of the previous year.
In addition, TM's quarterly net profit increased by 20% from RM274.7 million while its revenue jumped 3.8% from RM2.59 billion.
The continued increase in revenue was driven by high turnover through subscription of call, Internet and data services. In addition, TM's low operating costs following the cost optimization program contributed to the positive growth of net profit.
During the quarter, TM stated that it had invested 15% of its revenue in a capital expenditure of RM400 million for the purpose of network optimization. TM added that 50% of that amount is invested in network access, 17% for core networks and 33% on its support systems.
For the first nine months ended 30 September 2020 (9MFY20), its net profit amounted to RM756.67 million, an increase of 11% year-on-year from RM683.77 million previously while its cumulative income decreased 6.7% to RM7.84 billion from RM8.4 billion last year.
According to TM Group Chief Executive Officer (CEO) Imri Mokhtar in a statement issued, unifi products have seen momentum with an increase in users of 6.3% to 1.65 million people while the number of broadband customers is 2.26 million people.
According to TM, its network remained stable throughout the period of the Conditional Movement Control Order (PKPB) despite Internet usage increasing between 30% and 50% in March to November this year.
TM will also take advantage of the Window initiative introduced by the government to improve its broadband services next year and 2022.
TM shares jumped 15 sen or 3.3% to RM4.75 before the break of the trading session at noon today, bringing the market capitalization to RM17.92 billion.
