TM Earnings Up 6.6% To RM1.71 Billion, Impairments And Cukai Makmur Impacts PATAMI

Telekom Malaysia Berhad full year 2021 earnings are up on the back of robust tech uptake and strong showing from unifi subscriptions.

The group saw a 6.4% rise in revenue to clock in at RM11.53 billion from RM10.84 billion in 2020 making a revenue improvement and increase in Earnings Before Interest and Tax (EBIT), up 6.6% YoY to RM1.71 billion, from RM1.6 billion last year. Profit After Tax and Non-Controlling Interests (PATAMI) at RM895.2 million dipped 11.9% contributed by higher taxation including provision for Cukai Makmur, lesser interest income, and forex losses, as well as impairment of TM’s mobile assets as the Group prepares itself for 5G.

Based on its steady financial position and strong Free Cash Flow generation, the Board of Directors proposed the final interim dividend at 6 sen per share, resulting in a total dividend of 13 sen per share for 2021, in line with the Group’s growth investment strategy.

CAPEX for the year was reported at RM1.70 billion, or 14.7% of revenue, free Cash Flow at RM2.19 billion risingg 9.5% from RM2 billion.

Main contributor to the group was Unifi, revenue grew by 10.3% driven by increased fixed broadband subscribers, with 2.78 million cumulative registered subscribers – the highest number of unifi and fixed broadband customers registered, as well as highest number of ports installed.

TM Wholesale posted revenue grew by 14.7% due to solid partnership expansion with domestic and international customers. TMW had said that it will continue to pursue 4G and 5G fibre infrastructure deployment as well as promoting collaboration with domestic service providers, in line with the Government’s JENDELA initiative. 

TM ONE is expected to remain competitive amidst the challenging economic and business environment, it will continue enhancing its Cloud service as a complete digital solution by embedding analytics, smart services/IoT and cybersecurity to cater for the key industry verticals. The division has attained four International Standard certifications (ISO/IEC) for Cloud α on Information Security Management System (ISMS), Personal Data Protection Act (PDPA), Business Continuity Management System (BCMS) and Cloud Specific Controls.

Commenting on the performance, Imri Mokhtar TM CEO “For 2021, TM has shown positive results, driven by the New TM Transformation Programme which has delivered overall growth in TM’s revenue and EBIT. Cost rationalisation has also significantly improved the Group’s profitability.

As TM enters its second year of transformation in 2022, we are activating more programmes to ensure we quickly move forward as a growth company, and keep pace with our trajectory. TM’s revenue growth is expected to remain intact, in line with the Group’s market guidance, which is between low to middle single-digit growth, while EBIT is projected to be more than RM1.80 billion, driven by TM’s three Lines of Business: unifi, TM ONE and TM Wholesale.”

The group expects to invest between 14% to 18% of its revenue this year on Capex.

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