Top officials from Telekom Malaysia said that the company is expecting a sustained increase in revenue this year and the government-controlled telecom company is also planning to increase its capital expenditure to reinforce its services.
The company is expecting an increase in its income of between 3.5 and 4.0 percent this year and to maintain a gross income at levels on par with the MYR1.15 billion earned last year.
Telekom Malaysia’s top executives are very optimistic for this year and the company’s finance chief said that they will increase Telekom Malaysia’s capital expenditures from 27.5 percent of revenue in 2016 to 30 percent this year, adding that the company will be funding their spending mostly with income that will be generated by its operation.
A big part of their 2017 expenditure will be used on improvements to core access and networks, with the upgrade of their undersea cable laying projects.
Last week, the company reported a 20 percent slide in net revenue to MYR154.31 million during the final quarter of last year but indicated that their quarterly revenue climbed 1.9 percent to MRY3.24 billion from the same period in 2015.
The company’s net revenue for the entire year rose by 11 percent to MYR776.03 million, helped by lower exchange rates costs on loans, while income went up 2.9 percent to MYR12.06 billion. Much of its revenue was generated from internet and multimedia services.
The company is expecting its current businesses to continue growing and also to realise a return on investment (ROI) from its Webe mobile broadband service, formerly known as Packet One Networks.
The company had bought 57 percent ownership of Packet One Networks – a wireless broadband internet provider – for MYR350 million three years ago and the acquisition was to form part of the company’s plan to offer a bundled internet, mobile, and landline services.
Telekom Malaysia’s shares slid 0.5 percent to MYR6.14 last Wednesday, while the FTSE Bursa Malaysia KLCI ended higher at 0.1 percent.