Telekom 3Q net profit falls 22% to RM189 mil on higher operating cost, tax

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KUALA LUMPUR (Nov 26): Telekom Malaysia Bhd (TM) reported a 22% fall in third quarter net profit from a year earlier, on higher operating cost and taxes.

In a statement to the exchange today, TM said net profit fell to RM188.85 million in the third quarter ended September 30, 2014 (3QFY14), from RM240.88 million. Revenue was however, higher at RM2.64 billion, versus RM2.61 billion.

TM said 3QFY14 net profit fell "primarily due to higher operating costs and tax charge, in line with the expiry of tax incentives in September 2013, partially offset by lower net finance cost."

Revenue rose, "mainly due to higher revenue from other telecommunication-related services, Internet and multimedia, which mitigated the decline in data and voice," according to TM.

TM said its other telecommunications-related services comprise projects undertaken for its customers. According to TM, subscribers of its Internet and multimedia services under the "UniFi" brand had risen to 699,822, from 607,377 a year earlier.

Cumulative 9MFY14 net profit fell to RM613.51 million, from RM667.97 million a year earlier. Revenue however, rose to RM8.08 billion, from RM7.65 billion.

Looking ahead, TM's broadband and data services are seen as growth drivers for the company.

TM said its FY14 outlook remained positive, as it consistently focused on both segments.

"We have exceeded 712,000 UniFi customers to date, encouraged mainly by our continuous effort to offer fresh and innovative HyppTV content," TM said.

TM shares fell five sen or 0.7% to settle at RM7.45 at 12.30pm, for a market capitalisation of RM27.71 billion.