InstaForex

August 29, 2021

Experiencing Declining Profits, TM Optimistic Still Remains On The Right Track

 Telekom Malaysia (TM) today announced that the company's net profit rate for the second quarter ended June 30, 2021 experienced a slight decline of around 20.44%.


The group earned a profit of RM218.59 million compared to RM274.78 million recorded previously due to higher operating costs.


According to TM, the increase in operating costs includes provisions that are recognized as part of the group's workforce optimization initiatives.


Apart from these factors, foreign exchange losses were also seen to affect the lower profit rate during the quarter.



However, the company's revenue showed an increase to RM2.76 billion from RM2.59 billion supported by increased revenue for all services other than non -telecommunications services.


However, the company's revenue declined 1.7% to RM2.76 driven by the impact received when the Movement Control Order was tightened in the second quarter.


Judging by the current performance, TM remains optimistic in realizing its national digital aspirations and is highly confident that the company is still on track to achieve the 2021 target.


At 3.48pm, TM's share price remained unchanged at RM6.05 with 3.77 billion shares issued and having a market capitalization of around RM22.85 billion.


TM says that its seven sen share dividend will be paid on September 30, 2021.