Telekom Malaysia targeting 3.5% to 4% revenue growth for 2019

KUALA LUMPUR: Telekom Malaysia Bhd (TM), whose revenue exceeded RM12 billion for the first time last year, is targeting 3.5-4% revenue growth this year.
Group CEO Tan Sri Zamzamzairani Mohd Isa said for financial year ending Dec 31, 2017 (FY17), the group aims to maintain its earnings before interest and tax (Ebit) level at the same ringgit amount as FY16 and customer satisfaction measure of 73.
For 2019, it is targeting 3.5-4% revenue growth, 3.5-4% Ebit growth and customer satisfaction measure of 73.
All the headline key performance indicators (KPIs), except the customer satisfaction measure, includes webe's performance. Note that FY17 will be webe's first full year performance following its launch in September last year.
TM achieved all its headline KPIs for FY16. Revenue rose 2.9% to RM12.06 billion from RM11.72 billion a year ago driven by non-voice services, which represent 72% of group revenue while customer satisfaction measure exceeded 72.
Ebit for FY16 fell 8.2% to RM1.15 billion from RM1.25 billion a year ago due to higher operating costs and accelerated depreciation of WiMAX assets.
Total capital expenditure (capex) spent in FY16 was 27.5% of revenue, amounting to RM3.3 billion. Its FY17 capex is estimated to be "low 30%" of revenue.