TELEKOM Malaysia Bhd remains bullish over its prospects this year as it expects a higher take-up of its UniFi and Streamyx high speed broadband services.
Group chief executive officer Datuk Seri Zamzamzairani Mohd Isa said TM continues to show good progress on its business transformation efforts, despite posting slower profits in the first quarter.
TM’s net profit dropped 14.9 per cent to RM213.2 million in the first quarter ended March 2013, compared with RM250.6 million in the comparable quarter a year ago, primarily due to unrealised foreign exchange loss (forex).
“Overall, we continue to show good progress on our business transformation efforts amid heightened competitive environment.
“We recorded a healthy growth, particularly in the Internet and data services, with UniFi being the key driver, growing 68.4 per cent to more than 532,000 customers in the first quarter from a year ago,” Zamzamzairani said in a statement.
He noted that TM has to date activated more than 560,000 customers.
This translates to an almost 40 per cent take-up rate.
Reviewing the results, TM said it suffered a forex loss on borrowings of RM18.6 million, compared with a gain of RM67.9 million in the corresponding quarter last year.
Group revenue, however, climbed 1.7 per cent to RM2.4 billion from RM2.3 billion due to growth from the Internet services.
Internet services grew at 14.4 per cent year-on-year to RM644 million, driven by UniFi growth and HyppTV content.
“Prospects for the current financial year ending December 2013 remains positive on the back of more than 560,000 UniFi customers to date.
“We foresee higher take-up of broadband services with the introduction of Streamyx 8Mbps and the future expansion of UniFi based on demand.
“We expect to attract more HyppTV viewers. We are also pleased to highlight that HyppTV had recently won the ‘Best Live Online TV Service 2013’ award at the TV Connect Industry Awards in Mayfair, London,” it added.
UniFi take-up remains strong with customer base up 68.4 per cent year-on-year to more than 532,000 customers.
In the first quarter, the Internet services turned in a revenue of RM644 million, a growth of 14.4 per cent year-on-year from RM563 million recorded in 2012, on the back of a 6.8 per cent growth in broadband customer base.
Data revenue increased by 13.8 per cent to RM585 million in the current quarter from RM514 million in the first quarter of last year, driven by new circuits installations and upgrade to higher bandwidth.
With this, the Internet and data revenue now contributes 51 per cent to the group’s total revenue, compared to 45 per cent a year ago.
Its broadband customer base grew 6.8 per cent to 2.11 million in the first quarter, compared with 1.97 million in the same period of 2012.