HWANGDBS Vickers Research is projecting Telekom Malaysia Bhd's (TM) earnings to grow by six per cent to RM11.3 billion this year.
The research firm made the assumption after imputing a higher earnings before interest and taxes (Ebit) margin and higher revenue for the company.
The assumption was also based on the Unifi products that are expected to drive TM's revenue, both from subscriber gains and incremental average revenue per unit (Arpu) improvement via the HyppTV premium subscriptions.
TM's Unifi subscriber base grew 32 per cent year-on-year to 635,000 last year.
Unifi and Streamyx Arpus saw upticks on the back of upgrades to faster packages, as well as a greater take-up of HyppTV's premium channels, said HwangDBS.
HwangDBS Vickers said the Streamyx upgrades to four Mbps or higher packages would also sustain its Arpu going forward.
"TM will also be more aggressive in marketing, and this year could see full-year recognition of content costs from its Barclays English Premier League channel supply agreement with Astro Malaysia," it added. Bernama