TM Net Profit Rises 7.8 Pct To RM2 Bln, Declares 2nd Interim And Special Dividends 

KUALA LUMPUR, Feb 25 (Bernama) -- Telekom Malaysia Bhd’s (TM) net profit rose 7.8 per cent to RM2.01 billion for the financial year ended Dec 31, 2024 (FY2024) from RM1.87 billion recorded a year ago, due to lower net finance costs and the recognition of remaining one-off tax credits.

Revenue was also higher at RM11.71 billion, compared with RM11.69 billion previously.

"The improvement was primarily driven by internet and multimedia services, other telecommunication services, as well as the education segment," it said in a filing with Bursa Malaysia today. 

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For the fourth quarter, TM's net profit jumped 68.5 per cent (RM297.1 million) to RM730.63 million against RM433.53 million a year earlier. This was primarily due to the recognition of remaining one-off tax credits in the quarter.

Similarly, revenue was higher at RM3.05 billion, reflecting a 2.0 per cent (RM58.4 million) increase compared with RM2.99 billion in the same quarter last year.  This growth was driven by higher contributions from data services, other telecommunication services and the education segment.

"The overall encouraging performance is supported by a robust balance sheet and healthy cash reserves, showcasing TM’s strong operational fundamentals and financial position," said TM. 

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TM said it continued to invest strategically in network infrastructure, international submarine cables and data centres in FY2024.  Its total capital expenditure (capex) amounted to RM1.59 billion, representing 13.6 per cent of total revenue - well within its guidance range.

In line with its robust financial performance, the group has declared a second interim dividend of 12.5 sen per share and a RM230.3 million special dividend for FY2024. The total dividend for FY2024, including the interim dividend declared in August 2024, stood at 31 sen per share, “reaffirming TM’s commitment towards value creation and sustainable returns for shareholders.”

"This achievement demonstrates our execution capabilities and commitment to drive operational efficiencies while advancing Malaysia’s digital agenda," said TM group chief executive officer Amar Huzaimi Md Deris.  

TM said its 2025 outlook is positive, underpinned by its “core businesses which remain resilient, sustaining a positive revenue trajectory amid heightened competitive pressure and market dynamics.”

"This has poised us to better capitalise on emerging opportunities such as hyperconnected data centres, artificial intelligence (AI), and Graphics Processing Unit (GPU)-as-a-service (GPUaaS) which are among the new growth areas for TM,” he added. "These efforts will not only drive us closer to our aspiration of becoming a digital powerhouse by 2030 but also position Malaysia as the digital hub for ASEAN.”

-- BERNAMA