Telekom Malaysia has revealed its second quarter net profit dipped 1% year-on-ear to 212.1 million ringgit ($50.3 million) due to higher foreign exchange losses and operating costs.
But revenue for the quarter increased a slim 0.7% to 2.84 billion ringgit. Net profit also improved significantly from the previous quarter with a 64.5% jump, while normalized profit increased 28.2% sequentially to 219.6 million ringgit.
For the first half of the year revenue grew 3.2%, driven by a 14.3% increase in internet revenue. The company's UniFi customer base swelled 16.2% year-on-year, and the internet segment rose to account for 30% of revenues for the half-year period.
Moody's Investors Service noted that the operator's growing internet revenue is offsetting ongoing declines in fixed voice services.
“Revenue contribution from the fixed-line voice segment will continue to decline from 31% in 1H 2015," Moody's lead analyst for Telekom Malaysia Gloria Tsuen said.
Based on the results, Moody's has maintained its A3 credit rating on Telekom Malaysia's issuer and senior unsecured notes with a positive outlook.
Telekom Malaysia is the nation's largest fixed line operator, with an estimated 98% share of the fixed voice market and 92% of the fixed broadband market. The company is 55% owned by government-affiliated entities.