Telekom Malaysia Berhad (TM) has announced the resignation of its managing director and group chief executive officer (CEO), Dato’ Sri Mohammed Shazalli Ramly, effective 6 June 2018. At just over a year, he is the shortest serving CEO in TM’s 34-year history. Subsequently, TM has named current deputy group CEO, Datuk Bazlan Osman as acting group CEO.
Shazalli first took the helm on 1 May 2017 following the retirement of the previous Group CEO, Tan Sri Zamzamzairani Mohd Isa. He was previously the regional CEO and corporate EVP for Axiata Group Berhad, and also former CEO of Celcom Axiata and NTV7.
TM shares have taken a tumble in the past 12 months, plummeting 43 percent. TM Group’s net profit has also seen a drop of 32 percent, down from MYR230.4 million to MYR157.1 million for Q1 2018. It posted a revenue of MYR2.85 billion for Q1 2018, 3.9 percent lower compared to the year-ago quarter.
According to its quarterly financial report, its total fixed broadband customers have dipped, attributed to the decline of Streamyx customers.
On a positive note, the uptake of unifi has seen 4.5 percent quarterly growth. It currently has 1.18 million unifi customers, with its mobile business achieving 10 percent penetration of TM’s households.
In a post by The Edge Markets today, it was reported that TM’s shares rose 6.97 percent in early trade today after the announcement of Shazalli’s exit.
CIMB IB Research said TM’s convergence strategy will continue and day-today operations should be unaffected.
The self-proclaimed convergence champion is set to announce something “huge” tomorrow, 8 June, after weeks of teasing over social media.
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