TM maintains dividend payout

Telekom Malaysia Bhd (TM) (4863)says it wants to continue dishing out around RM700 million in dividends, or over 90 per cent of its net profit, to shareholders annually.

TM and the government will each fork out RM1 billion this year to further develop the country's high speed broadband service, branded "UniFi". They had agreed to invest equally in the first few years, TM chief executive officer Datuk Zamzamzairani Mohd Isa said. TM and the government together spent RM1.9 billion last year, he told reporters after its annual general meeting in Kuala Lumpur yesterday.

"We will maintain annual dividend payout of RM700 million, or over 90 per cent of our patami (profit after tax and minority interests), whichever is higher," he said. TM has announced a total dividend of RM706.5 million, or 19.75 sen net per share, for its financial year ended December 31 2009.