Telekom Malaysia (TM) Q3 2024 earnings summary

Executive summary

• EBIT rose 7.9% year-to-date to RM1,812.7 million, with operating revenue at RM8.66 billion, reflecting a 0.4% year-over-year decline amid a competitive market.

• Fixed broadband subscribers increased 1.6% year-to-date to 3.167 million, supporting revenue stability.

• PATAMI was RM1,286.3 million, down 10.5% year-over-year due to a one-off tax credit in 2023, but underlying PATAMI shows solid growth.

• Cost optimization, digital transformation, and a strong balance sheet contributed to improved financial performance and resilience.

• Interim dividend of 12.5 sen per share (RM479.7 million) was paid in September 2024.

Financial highlights

• Revenue for 3Q YTD 2024 was RM8,662.0 million, down 0.4% year-to-date and 1.2% year-over-year, but up 0.3% quarter-over-quarter.

• EBIT for 3Q YTD 2024 reached RM1,812.7 million, up 7.9% year-to-date but down 4.7% year-over-year and 10.4% quarter-over-quarter.

• PATAMI was RM1,286.3 million, down 10.5% year-to-date and 13.6% year-over-year, but up 17.3% quarter-over-quarter.

• Capital expenditure was RM767 million, representing 8.9% of revenue.

• Free cash flow improved to RM1,819.9 million from RM1,488.2 million year-over-year.

Outlook and guidance

• The group expects to sustain growth momentum and is on track to achieve its 2024 market guidance.

• Focus areas include fixed-mobile convergence, 5G, cloud, and AI solutions to drive revenue and enhance customer experience.

• Strategic investments in submarine cables and data centres are expected to drive long-term growth.

• Continued focus on cost efficiency and sustainable growth in a challenging environment.