TELEKOM Malaysia Bhd’s (TM) revenue for its financial year ended December 31 2013 surpassed the unprecedented RM10 billion mark, contributed by its data services.
Its RM10.63 billion revenue, which is a 6.4 per cent rise from RM9.99 billion recorded in 2012, outstripped the mobile industry growth.
TM group chief executive officer Tan Sri Zamzamzairani Mohd Isa attributed the telco’s ability to pierce the RM10 billion mark largely to the greater take-up of the company’s data services like Unifi.
Some 49 per cent of TM’s revenue in 2013 were generated from Internet and data services, up from 46 per cent of revenue in 2012.
This shows that the company’s capital expenditure (capex) allocation of RM1.17 billion for high-speed broadband (HSBB) from the total capex of RM1.86 billion in 2013 was well-placed. TM’s total broadband customer base stood at 2.2 million for the year under review.
Zamzamzairani said TM plans to capitalise on the trend by aggressively pushing broadband data services in under-served areas. This will lead to higher investments in new technology, like LTE (Long Term Evolution).
During the year under review, TM reported a net profit of RM1.012 billion, down from RM1.26 billion posted a year ago. The profit drop was due to a net foreign exchange loss caused by the strengthening of the US dollar against the ringgit.
The company has announced a dividend of 16.3 sen per share amounting to RM583.1 million, bringing the total dividend for the year to 26.1 sen per share, and involving a RM933.7 million payout.
Zamzamzairani said the final dividend will be paid by June.
“The 2013 was nothing short of remarkable amid an increasingly challenging environment, with volatile markets and intense competition.
“This time last year, we announced our targets of revenue growth of six per cent, earnings before interest and tax (Ebit) growth of three per cent and customer satisfaction measure based on the TRI-M index of 72.
“We are pleased to report that the achievements in 2013 have enabled us to record a good solid performance for the year ended December 31 2013, achieving all our three headline KPIs (key performance indicators) for the fourth consecutive year,” he said.
Zamzamzairani was also satisfied that TM sustained its capital and cost-efficiencies, with capex/revenue ratio of 17.5 per cent in 2013, compared to 25.5 per cent in financial year 2012.
Asked if the rising cost of living will impact TM’s revenue in 2014, he said data and the Internet have become a necessity for people and doubts the perceived impact.
Zamzamzairani said TM’s 2014 headline KPI targets include revenue growth of five to 5.5 per cent, Ebit growth of five per cent and customer satisfaction measure of 72.
Meanwhile, TM group chief financial officer Datuk Bazlan Osman said that the capex for 2014 will be between 20 and 22 per cent of the group’s revenue, compared with 18 per cent of 2013’s revenue.