“Revenue also edged down by 1.7% to RM2.91 billion during the quarter from RM2.96 billion previously,” it said in a Bursa Malaysia filing today.
TM said this decline was mainly due to lower revenue from voice services.
However, internet and data services revenue continued to show steady growth.
“Correspondingly, operating profit before other gains and finance cost declined by 2.7% (RM17.3 million) to RM612.7 million from RM630 million.
“The group’s profit after tax and non-controlling interests (Patami) was RM396.4 million for Q2 2024, reflecting a 30.3% (RM172.3 million) decrease from the RM568.7 million recorded in the second quarter of 2023 (Q2 2023).”
It said the decline was primarily caused by the one-time recognition of tax losses in the previous year.
TM has declared an interim dividend of 12.5 sen per share, amounting to RM479.7 million, for the half-year ended June 30 (H1 2024), an increase from the 9.5 sen per share interim dividend declared in the previous year.
Regarding revenue by customer segments, it stated that Unifi maintained a steady growth of broadband subscribers in Q2 2024 compared to the same quarter last year.
However, a decrease in voice and mobile device revenue resulted in a drop in operating revenue, decreasing by 1.6% (RM22.7 million) to RM1.39 billion, down from RM1.41 billion in the same quarter of the previous year.
It also said TM One recorded operating revenue of RM740.6 million in the current quarter, improving by 4.9% (RM34.4 million), from RM706.2 million in the same corresponding quarter last year, due to the one-off revenue recognition related to a recent arbitration settlement.
Due to lower international voice service revenue, TM Global’s operating revenue declined by 8.6% (RM71 million) to RM751.5 million in Q2 2024 from RM822.5 million in Q2 2023.
On prospects, it said TM proactively adapts its business strategy to identify new growth areas for the future while strengthening its core business.
Recently, the telecommunications group partnered with Nxera, Singtel’s data centre arm, to build an advanced artificial intelligence-ready data centre in Johor.
TM stated that this demonstrated its commitment to delivering top-quality data centre solutions, supported by new submarine cables and expansion of existing data centres.
“TM continues to support the 5G ecosystem in Malaysia and provide high-quality converged digital offerings across various segments of our customers,” it added.
For H1 2024, TM recorded a lower net profit of RM821.23 million from RM898.83 million in the first half of 2023 (H1 2023), while revenue stood at RM5.74 billion.
The group recorded a 14.5% growth in earnings before interest and tax (Ebit), reaching RM1.26 billion compared to RM1.1 billion in the same period last year.
This was driven by continued focus on enhancing operational efficiency and effective cost management, while Patami decreased by 8.6% to RM821.2 million in H1 2024 due to a one-off tax credit in 2023.
TM group CEO Amar Huzaimi Deris said the Unifi UniVerse, a suite of offerings for home internet, mobile, entertainment, and lifestyle solutions, has continued to excite the market.
He also said the group is advancing Malaysia’s digital infrastructure through the development of the Next Generation Emergency Services 999 in collaboration with various government agencies.
Capital expenditure in H1 2024 amounted to RM460 million, representing 8% of total revenue.
At the close of trading, TM’s share price was down by nine sen or 1.31% at RM6.76, giving the group a market capitalisation of RM25.94 billion.