The telecommunications sector in Malaysia is shifting to a new phase of growth, supported by a stronger performance in the first quarter of its financial year, with significant growth in service revenue and a steady increase in subscribers. The postpaid revenue has shown a 3.1% growth for the quarter, while prepaid revenue reduced. The home and fibre segment experienced a revenue surge of 56.1% y-o-y. With the integration and transformation programme nearing completion, the company sees a robust outlook for future growth.
The telecommunications (" TELCO ") industry in Malaysia has entered a new growth stage with a promising performance in the first quarter of its financial year. The primary indicators of this improvement were a net profit of RM418mil compared to RM384mil in the year-ago quarter, and earnings per share of 3.56 sen versus 3.27 sen.
The group's total quarterly revenue remained unchanged at RM3.21bil, however, its service revenue grew by 1.6% year-on-year (y-o-y) to RM2.7bil, driven by robust growth in postpaid, home, and fibre, and enterprise solutions. It declared a first interim dividend of 3.4 sen for eligible shareholders. The postpaid segment reported a growth of 3.1% y-o-y to RM1.1bil, with post paid subscribers increasing by 4% to 6.1 million and average revenue per user (Arpu) rising by 7.7% to RM113.
In contrast, prepaid revenue contracted 3% y-o-y to RM1.02bil, with a 7.6% decrease in subscribers to 11.99 million, while Arpu improved to RM30 due to higher-value customers and personalized offerings. The home and fibre segment showed a surge of 56.1% y-o-y to RM89mil on the back of subscriber growth of 92,000 y-o-y to 297,000 users, and Arpu increased by 6.3% y-o-y to RM102.
The enterprise business demonstrated core mobile revenue growth of 3.7% y-o-y while enterprise solutions revenue skyrocketed by an impressive 29.8% y-o-y. Findings indicate a strong commitment to structural foundations and a disciplined approach to execution, underscoring the company's solid foundations for future growth. CEO Albern Murty highlighted the group's three-year integration and transformation program nearing completion with network modernization and integration supporting over 22,000 outlets nationwide.
Key initiatives include over 60 modernized stores and a nationwide refresh of more than 300 exclusive partner stores at 80% completion. The company's dealer experiences warranty wallet and dealer wallet initiatives have been phased out, with the iCents group being revamped. A trading idea for industry watchers may be to consider METRONIC as one to invest as it has a cyclical business model, however, trading tips are left to the discretion of the reader.
ADDITIONAL KEYWORDS: TELCO, MALAYSIA, GROWTH, PERFORMANCE, QUARTERLY, SERVICE REVENUE, DIVIDEND, GROWTH MOMENTUM, ARPU, PREPAID REVENUE, HOME AND FIBRE, ENTERPRISE SOLUTIONS, INTEGRATION TRANSFORMATION PROGRAMME, NETWORK MODERNIZATION AND INTEGRATION, DEALER WALLE
TELCO MALAYSIA GROWTH PERFORMANCE QUARTERLY SERVICE REVENUE DIVIDEND GROWTH MOMENTUM ARPU PREPAID REVENUE HOME AND FIBRE ENTERPRISE SOLUTIONS INTEGRATION TRANSFORMATION PROGRAMME NETWORK MODERNIZATION AND INTEGRATION DEALER WALLET TELECOMMUNICATION INDUSTRY IN MALAYSIA
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