Real Online Gaming Casino TM Shares Down 40 Sen To RM3.23

TM shares down 40 sen to RM3.23 at 12.14pm on June 21 Axiata fell 2.75% to RM4.25 real online gaming casino Digi.Com down 1.64% to RM4.29, Maxis dips 1.08% to RM5.51     TELEKOM Malaysia Bhd (TM)’s shares were down 11.02% or 40 sen to RM3.23 at 12.14pm on June 21, following Minister of Communications and Multimedia Gobind Singh Deo’s announcement on June 20 that broadband prices would be reduced by year end. Other telco stocks also fell prior to the mid-day market close, however TM was impacted the most. At 12.30 pm, TM was down 10.74% to RM3.24, Axiata Group Bhd had fallen by 2.75%.

To RM4.25 real online gaming casino Digi.Com Bhd 1.64% to RM4.29 and Maxis Bhd down 1.08% or 6 sen to RM5.51. To recap, yesterday Gobind said that fixed broadband prices are expected to drop by at least 25% by year-end as part of the new government’s pledge to the people. This results from the enforcement of the Mandatory Standard on Access Pricing (MSAP), which sets the wholesale prices that can be charged by service providers such as TM. According to AmInvestment Bank analyst Alex Goh, a 25% reduction in unifi revenue alone for TM could potentially wipe out almost 90% of the telco’s 2019 financial year.

Forecast earnings. “Including a similar reduction in Streamyx revenue real online gaming casino it will translate to a slight loss for TM,” he said in a research note today. Goh said that based on unifi’s 1.2 million customers and ARPU [average revenue per user] of RM194/month in 1Q18, they estimate that this division’s annualised revenue could reach RM2.7 billion, excluding Streamyx customers which could account for another RM1.2 billion. He expects TM to continue appealing to the government to reconsider its decision. This is because a drastic cut will derail the group’s capex rollout programme under the High-Speed Broadband 2 drive to connect suburban and rural.

Areas. “This will also hinder plans to provide internet access throughout Malaysia real online gaming casino which Gobind indicated may be recognised as a basic human right by the government,” Goh opined. “We continue to expect the national agenda to reduce broadband prices under the ‘double the speed for half the price’ campaign together with TM’s convergence strategy to offer quad-play services to eventually lead the path towards sector consolidation as the need for a potential re-merger with Axiata Group is re-accentuated by its weak 1Q18 results,” he added. MIDF Research meanwhile, downgraded TM to a ‘sell’ with a reduced target price of RM3.02 in a.