TELEKOM Malaysia Bhd (TM)'s net profit fell almost 40 per cent in the fourth quarter ended December 31 2012 despite higher revenue.
Its net profit for the quarter slipped to RM363.2 million from RM598.3 million in the comparable quarter a year ago, mainly due to lower deferred tax income on unutilised tax incentives.
Revenue for the period climbed by 14.8 per cent to RM2.8 billion from RM2.4 billion, primarily contributed by higher data, Internet and multimedia, other telecommunications and non-telecommunications related services.
For the full year, net profit grew by 6.1 per cent to RM1.26 billion compared with RM1.19 billion the previous year due to higher revenue, recognition of deferred tax income and unrealised forex gain.
Revenue for the 12-month period was a record nine per cent increase to RM9.9 billion from RM9.15 billion recorded last year, outstripping industry growth and the highest since its demerger in 2008.
TM group chief executive officer Datuk Seri Zamzamzairani Mohd Isa said the improved performance was mainly driven by healthy growth across all key products, namely internet and multimedia, particularly UniFi, higher data and other services.
"Overall, we've had a good solid year in 2012, with revenue growth outstripping the industry and our highest since demerger. We made significant progress on our comprehensive action plan to position ourselves for our next stage of growth and profitability," he told a media briefing here yesterday.
TM also proposed a dividend of 12.2 sen per share of about RM436 million, on top of the interim dividend of 9.8 sen per share amounting to RM351 million paid in September last year.
He said that TM also achieved all three of its 2012 key performance indicators (KPIs), which included a revenue target growth of five per cent, normalised earnings before interest, taxes, depreciation and amortisation margin of 32 per cent and customer satisfaction score of 72.
"Execution of the Performance Improvement Programme will be a focal point for TM in 2013," he said.
TM believes that for this year, competition is expected to intensify in the retail space, but it also creates opportunities for the group.
"The company's focus for 2013 is still to maintain its position as Malaysia's broadband champion, anchoring on Streamyx and UniFi as its key broadband products, delivering an enhanced and integrated digital lifestyle to all Malaysians," he added.
TM also announced its headline KPIs for 2013, consisting of revenue growth of six per cent, earnings before interest and taxes growth of three per cent and customer satisfaction measure of 72.
Meanwhile, TM chief financial officer Bazlan Osman said during the year under review, the group continued to maintain its leadership position in the broadband segment.
"Our customer base grew by about 7.4 per cent from 1.92 million in 2011 to 2.07 million in 2012.
"To date, TM has activated more than 515,000 UniFi customers and we are continuing the momentum into 2013. We remain committed to our mission as the trusted broadband provider for the nation, evidenced by our strong combined customer base of both Streamyx and UniFi," he said.