25 May 2023
TM Records a Promising 1Q2023 Performance with 2.0% Revenue Growth; Continues to Strengthen its Core Business
1Q2023 Key Highlights (vs 1Q2022)
· Operating Revenue grew 2.0% from RM2.89 billion to RM2.95 billion, with continuous growth across Unifi and TM Global
· EBIT decreased 15.5% from RM560.4 million to RM473.3 million, following accelerated depreciation and impairment
· PATAMI lower 2.9% from RM339.9 million to RM330.1 million, lower EBIT cushioned by lower net finance cost and effective tax rate
· CAPEX investment stood at 14.0% of revenue or RM413.1 million, heavily attributed to fibre network expansion
Amidst the challenges for the year, Telekom Malaysia Berhad (TM) achieved a steady and promising performance in the first quarter that ended on 31 March 2023, compared to the same period in the previous year (YoY).
Operating revenue grew 2.0% to RM2.95 billion, from RM2.89 billion in 2022, driven by Unifi and TM Global. TM saw an increase in customers with Unifi now serving close to 3.5 million home and MSME customers, TM One catering to 8,800 businesses, and TM Global serving more than 700 local and regional customers.
Its reported Earnings Before Interest and Tax (EBIT) is lower 15.5% to RM473.3 million, from RM560.4 million, following the Group’s decision to accelerate depreciation and impairment of IT assets, due to changes in market conditions.
Profit After Tax and Minority Interest (PATAMI) decreased 2.9% to RM330.1 million from RM339.9 million. Lower net finance cost and lower effective tax rate from the recognition of deferred tax assets mitigated the impact of the lower EBIT on the Group’s overall profitability.
Capital Expenditure (CAPEX) stood at 14.0% of overall revenue, or RM413.1 million. A significant portion of this investment was dedicated to fortifying its fibre infrastructure, delivering new customer acquisition, international subsea cables investment and 5G fibre network deployment to meet Government’s target of 80% coverage by year end.
Unifi sustaining growth trajectory
Unifi continues to deliver leadership in convergence service and solutions for both home and MSMEs customers. Unifi reported a 1Q2023 revenue growth of 4.3% from RM1.38 billion to RM1.44 billion contributed by both, growth in number of subscribers and average revenue per customer (ARPC).
Unifi fixed broadband subscription increased by 8.1% to 3.08 million propelled by aggressive sales, and promotions such as the 6-months complimentary speed upgrade offered to existing Unifi Home users and 7-days free viewing of all Unifi TV channels during Chinese New Year.
Unifi Mobile unveiled its latest offerings, the UNI5G prepaid and postpaid plans, which include complimentary 5G access for all current mobile subscribers. Additionally, Unifi introduced the Pakej Perpaduan Jalur Lebar Tetap (Home Internet) and Pakej Perpaduan Prabayar Mudah Alih (Prepaid Mobile) plans specifically designed for underserved communities, providing inclusive and ubiquitous connectivity for the community.
Unifi Business’ collaborative efforts with local government agencies have been instrumental in supporting MSMEs to digitally grow their businesses. As part of this initiative, Unifi Business launched a programme in Sabah that has resulted in a significant participation of local entrepreneurs.
TM One navigating challenging market and shifting demand
TM One recorded a 6.7% slowdown in revenue from RM773.7 million to RM721.9 million in the current quarter, largely due to the impact of price reduction and lower revenue from one-off customer projects.
The delivery of key projects across several industries shall set the pace for TM One in the coming quarters. TM One delivered a Private 5G solution to enable Smart Industry solutions and completed a hybrid cloud project that is instrumental to the IT backbone transformation of its customer. TM is also the only telco with a 100% completion record for the Point of Presence (POP) Phase 1 Project, successfully delivering 233 sites across the northern states, Sabah and Sarawak.
Building on the success of TM One 5G Sphere Partner Programme launched end of 2022 where more than 90 leading partners are registered today, TM One launched its Sandbox platform providing a secure and controlled environment for enterprise and Government customers with technology partners to co-create and commercialise innovative smart service solutions, which will propel their digitalisation and automation drive.
TM Global catalysing digital inclusivity
TM Global reported continuous growth in 1Q2023, with revenue increasing by 3.9% from RM625.1 million to RM649.2 million, contributed by higher data and data centre co-location services.
As the leading partner for High-Speed Broadband Access (HSBA), TM Global achieved the highest number of new installations in March, supporting collective industry growth throughout Malaysia. Additionally, close to 8,000 4G and 5G fiberisation site were deployed to meet the growing demands of industry players and enhance nationwide edge capabilities, further propelling national digital initiatives.
Internationally, TM Global secured deals from US-based hyperscaler and North Asia digital provider for its wholesale data centre solutions as well as a substantial deal from ASEAN telecommunication player for more than 10Tbps data requirement within this region. TM Global remains focused on positioning Malaysia as the preferred digital hub for the ASEAN region through its comprehensive and customised offerings for hyperscalers, global carriers and digital players.
Commentary and Outlook from Dato’ Imri Mokhtar, TM Group Chief Executive Officer
“2023 is expected to be a challenging year with changes in the regulatory landscape, heightened competition and other market structure changes. TM will continue strengthening its core business to be commercially sustainable as a Public Listed Company (PLC) whilst continuing to contribute to the nation’s growth via its role as a Government Linked Company (GLC).
“As the national connectivity and digital infrastructure provider, TM will continue to execute the fiberisation plan to support the Government’s National Digital Network (JENDELA) programmes as well as the 5G rollout nationwide. TM looks forward to continue playing an active role in the 5G implementation, leveraging its nationwide fibre infrastructure, extensive digital platforms (data centres, edge nodes) and rollout experience.
“We remain steadfast as we enter the final year of our 2021-2023 Transformation Programme, and pursue the next wave of growth beyond 2023. In line with our journey to become a human-centred TechCo, we announced the launch of TM’s new HQ and Campus, located in Cyberjaya. The campus will serve as a catalyst for a new way of working that drives agility and flexibility through digital collaboration and hybrid work environment, propelling innovation among our employees, customers and partners.
“We will continue to advocate sustainability efforts and strive for progress. TM has released our first Task Force on Climate-related Financial Disclosures (TCFD) report, 2 years ahead of Bursa Malaysia’s 2025 requirement. The report focuses on increasing transparency around the financial implications of an organisations’ climate-related risks and opportunities.
“Though cautious with the overall outlook, we remain optimistic with the prospects of increased hyperconnectivity, continuous growth investments in connectivity and digitalisation across all customer segments. TM will continue to enable a Digital Malaysia by offering comprehensive suite of communication services and digital solutions benefitting communities, businesses and Government.”
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TM announces appointment of new chairman; records highest appreciation to predecessor
Telekom Malaysia Berhad (TM) today announced the departure of Tan Sri Dato' Seri Mohd Bakke Salleh as Chairman of TM Board with effect on 31 July 2021 and the appointment of its new Chairman, Dato' Mohammed Azlan Hashim effective 1 August 2021. On behalf of TM Group, the Board of Directors, expressed their highest appreciation to Tan Sri Dato' Seri Mohd Bakke Salleh for his leadership and contribution to the TM Group during his tenure. "The entire Board, management and Warga TM would like to record our heartfelt gratitude to Tan Sri Dato' Seri Mohd Bakke, an exemplary role model in upholding governance and integrity and a highly respected corporate figure; who has brought his vast insights in industry and commercial to benefit the TM Group. Together with the Board, Group Chief Executive Officer (GCEO) and management, we have charted the next phase of growth for the company under the New TM Transformation 2021-2023, anchored on 40+ Value Programmes. This has already seen a strong start with quarterly growth across all lines of business and improved operations. Under his stewardship, TM has also continued to serve and support the nation throughout the Movement Control Order (MCO) period, ensuring Malaysians stay safe and connected at home and remain productive; whilst extending humanitarian aid to those in need during these challenging times." Tan Sri Dato' Seri Mohd Bakke was appointed as Chairman of TM Board in May 2020. Commenting on the new Chairman's appointment, the Board said, "We are happy to welcome Dato' Mohammed Azlan Hashim as the new Chairman of TM Board. He is a highly respected corporate figure with extensive experience in investment and financial services; most notably as a Board member of Khazanah Nasional Berhad (Khazanah) and the Employees' Provident Fund (EPF). He brings a wealth of industry and commercial insights, which will broaden and enrich the Board's overall expertise. We look forward to Dato' Azlan's guidance, counsel and leadership as the Company continues on its transformation journey and next phase of growth and value creation. As the enabler of Digital Malaysia, TM is committed to playing our part to support all our customer segments across homes, businesses, industry as well as the public sector with connectivity, digital infrastructure and solutions towards economic recovery." "We would like to wish Tan Sri Dato' Seri Mohd Bakke all the best in his future undertakings. On that note, we would also like to welcome Dato' Mohammed Azlan as the new Chairman of TM," concluded the Board. PROFILE OF DATO' MOHAMMED AZLAN HASHIM Dato' Mohammed Azlan Hashim is presently a Board member of Khazanah since 1 April 2020. He is also a Board member and the Investment Panel Chairman of the EPF. He is also currently the Chairman of several public listed entities including D&O Green Technologies Berhad, Marine & General Berhad and IHH Healthcare Berhad. He has extensive working experience in the corporate sectors including financial services and investments. Among others, he served as Chief Executive of Bumiputra Merchant Bankers Berhad, Managing Director of Amanah Capital Malaysia Berhad and Executive Chairman of Bursa Malaysia Berhad. He holds a Bachelor of Economics from Monash University, Melbourne and is a qualified Chartered Accountant. He is a Fellow Member of the Institute of Chartered Accountants, Australia, Institute of Chartered Secretaries and Administrators, and Member of the Malaysian Institute of Accountants.
Solid first half 2021 for TM: revenue up +8.2%, EBIT up +29.9%, dividend declared
First half 2021 Key Highlights (vs first half 2020) Group Revenue grew 8.2% to RM5.57 billion from RM5.15 billion Cost optimisation continues to yield results. Group Reported Earnings Before Interest and Tax (EBIT) increased by 29.9% to RM977.3 million, from RM752.4 million last year Group Reported Profit After Tax and Non-controlling Interests (PATAMI) rose 27.3% to RM544.0 million, compared to RM427.2 million last year Record breaking unifi customer growth; fixed broadband customer base grew 15% to 2.55 million Declares interim dividend of 7.0 sen per share totalling RM264.2 million in line with dividend policy Continues to focus on value creation and ESG for sustainable growth Telekom Malaysia Berhad's (TM) revenue for the first half of 2021 (1H2021) grew strongly by 8.2% to RM5.57 billion, compared to RM5.15 billion in the same period last year. In a statement today, the company said this achievement was driven by growth across all its customer segments – unifi, TM ONE and TM WHOLESALE. On the back of this higher revenue and better cost efficiency, Group EBIT rose by 29.9% to RM977.3 million, from RM752.4 million last year. Subsequently, Group PATAMI grew 27.3% to RM544.0 million, from RM427.2 million in the same period last year. The Company continues to invest in future growth by modernising its network and technology platforms, to deliver the best current and future solutions for its multi-segment customers. CAPEX spending in the first half of the year stood at RM597.0 million or 10.7% of revenue. Of the amount invested, 65% was for network access, 16% for core network, and the balance 19% for support systems. Fibre broadband of choice – highest ever new unifi customers recorded in 2Q2021 unifi recorded several operational milestones with more than 210,000 new customer activations in the second quarter of 2021 (2Q2021). This is the highest number of unifi activations in a quarter in its 11-year history. unifi achieved an important milestone of 2.0 million customers in May 2021. By the end of June, the overall fixed broadband customer base had gone up to 2.55 million, representing a solid 15% growth over the past 12 months since June 2020. This growth was enabled by the higher number of ports added in 2Q2021 and wider fibre network coverage, exceeding the targets committed in the JENDELA plan, achieving 138% of its commitment in 1H2021. unifi also increased its sales and installation capacity to meet strong fibre broadband demand. unifi also saw positive uptake of device bundles with the enhanced unifiYourWorld campaign offering smart lifestyle devices, unlocking the unlimited possibilities to enrich users' digital lifestyle and needs. unifi brought live streaming of the recent Olympic Games Tokyo 2020 on 13 HD channels for free via unifi PlayTV app and unifi Plus Box, to enable Malaysians to support our athletes competing at the games. Customer touchpoints and support remains in operation with stricter SOPs As more Malaysians are working from home, conducting business online, participating in online learning and keeping the family entertained while staying safely at home, TM observed that internet usage went up by 45% since the start of MCO in March 2020. All customer support services remain in operation with stricter SOPs to continuously serve customers. Customer care lines remain open and attended to over 3.6 million customer interactions in 1H2021. TMpoint outlets and key partner stores remain open for service applications and essential transactions while adhering to strict SOPs. TM is also expanding and renovating selected TMpoint outlets with localised flavour, self-serve kiosks and implementing many other improvements to enhance its customers' experience. New service installation and restoration activities remain available for customers with SOPs in place to ensure the safety of both, customers and TM personnel. Notably, TM activated unifi Rovers nationwide to help customers sign up easily. Due to the higher volume of interactions during this pandemic period, customers are encouraged to use self-serve digital channels such as the unifi portal and myunifi app which are available 24/7 for service registration, service diagnostics, account-related enquiries and payment. A more simplified and personalised digital bill was also introduced for bill payment convenience of customers. TM ONE is committed to accelerating MyDIGITAL aspirations with cutting-edge digital infrastructure and solutions TM ONE continues to be the digital enabler and trusted partner for enterprise and public sector customers by providing dependable connectivity and delivering new customer projects in 1H2021. As customers pursue to accelerate their digitalisation adoption, this has translated into new contracts and renewals. Following its appointment as the sole Malaysian Cloud Service Provider (CSP) under the MyDIGITAL blueprint, TM ONE sees growing demand for its Cloud services from enterprises and government agencies. In addition, TM ONE also served international demand to fulfil hyperscaled requirements as the local data centre provider. With its complete suite of cybersecurity solutions under TM ONE CYDEC, TM ONE has formed alliances with strong global and local cybersecurity players to further enhance its ability to detect and eliminate cyber threats for enterprise and public sector customers. This will help pave the way for digital trust and cyber resiliency to help nurture a safer and more robust national cyber ecosystem. TM WHOLESALE strengthens domestically, further builds partnership ecosystem globally Domestically, TM WHOLESALE continues its growth momentum as the preferred infrastructure partner for High Speed Broadband (HSBB) access services. It also achieved further expansion of infrastructure coverage and capacity for Next Generation Backhaul services for several mobile network operators. TM WHOLESALE also secured bandwidth capacity upgrades for major Domestic Wholesale Data solutions and services. Internationally, TM WHOLESALE strengthened its partnership ecosystem with more global telcos and hyperscalers for International Data services. TM WHOLESALE also secured more deals with global telcos and hyperscalers for International Ethernet services. It also expanded its digital media delivery network ecosystem with growth from domestic and international digital content players. Focused on value creation and ESG for sustainable growth TM continues to focus on Environmental, Social and Governance (ESG) principles of sustainable and ethical business practices in serving the nation: Governance: TM is committed to uncompromising integrity. All its suppliers have signed the TM Integrity Pledge and more than 90% of Warga TM have progressively completed the Uncompromising Integrity e-learning module. TM also ensures that its corruption mitigation practices are independently certified - having completed the Anti-Bribery Management System (ABMS) certification and the Organisational Anti-Corruption Plan (OACP). Social: TM aims to deliver social impact by ensuring the wellbeing of its Warga TM and the nation. TM is committed to bridging connectivity through the JENDELA plan. TM remains fully supportive of the Government's recovery plan - "Pelan Pemulihan Negara" - via its connectivity, digital infrastructure and solutions as well as various social contributions. Environment: TM continuously strives to reduce its annual carbon emissions from electricity usage through the retirement of old networks, implementation of an Energy Management System and improvement of energy-saving practices. TM is continuously improving these sustainability efforts while at the same time upholding its commitment to its stakeholders. Imri Mokhtar, Managing Director and Group Chief Executive Officer of TM commenting on the results: "I am pleased to report that we have recorded a solid performance in the first half of the year and we are on track to meet our 2021 targets in line with market guidance. Coming off an exceptional first quarter, we recorded notable improvements in our 1H 2021 revenue and profitability against the same period last year. "This was driven by higher revenue achieved by all of our customer segments – unifi, TM ONE & TM WHOLESALE and better cost efficiency. The current nationwide movement control order (MCO) has certainly influenced our business landscape and customer operations, but we are delighted with the momentum of our value programmes and the commitment of our frontliners. "Our revenue in 1H2021 recorded an increase of 8.2% at RM5.57 billion against RM5.15 billion in the same period last year, driven by revenue growth from all customer segments. Our EBIT has increased by 29.9% from RM752.4 million to RM977.3 million. Malaysia's economic growth outlook for 2021 continues to be challenging with the prolonged movement restrictions brought about by Covid-19. Notwithstanding the headwinds, our role remains. We will continue to serve the nation by meeting the demand for internet and data, both at the retail and wholesale fronts. This is evident through the acceleration of the number of ports deployed and the fibre network expansion under our Jalinan Digital Negara (JENDELA) commitment, which is well ahead of schedule. We remain steadfast and will leverage our comprehensive connectivity, digital infrastructure and other smart solutions to support the nation's digital aspirations under the MyDIGITAL blueprint.
Yayasan TM issues two requests for proposal (RFP) for Muzium Telekom Kuala Lumpur Transformation Plan 2022 - 2024; seeks interested parties to apply
Request For Proposal (RFP) On Food And Beverage (F&B) Operator At Muzium Telekom, Kuala Lumpur Yayasan TM (YTM), the foundation arm of Telekom Malaysia Berhad (TM), today has issued a Request for Proposals (RFP) seeking multiple partner organisations to be part of Muzium Telekom Kuala Lumpur Transformation Plan 2022 - 2024. YTM launched The Muzium Telekom Transformation Plan with the objective to placemake the 94-year-old heritage building as an engaging public space, for education, entertainment and monetisation opportunities. "We are calling on many experts and practitioners to join forces with us in the spirit of collaboration and creativity, to curate programmes, services, activities or events that can help us to reimagine and transform Muzium Telekom as a placemaking public venue that is vibrant, educational and inclusive to everyone," said Izlyn Ramli, Director of Yayasan TM. "As the economy has opened up, public spaces and museums are seeing an increasing number of visitors looking for iconic venues and engaging activities. Muzium Telekom's differentiation is through the marriage of technology and arts, where digitalisation plays a significant role, in line with our TM Group vision as a human-centred tech company and the enabler of Digital Malaysia. YTM will continue its ongoing mission to preserve and celebrate the nation's arts, culture & heritage, as well as supporting community sustainable livelihoods by placemaking Muzium Telekom into an engaging public digital arts space with future-forward immersive museums' exhibits and various community and micro-SME (such as retail and F&B) programmes," she added. Since 1994, Muzium Telekom also known as Muzium Telekomunikasi Negara, has been showcasing the history and evolution of telecommunications in Malaysia. Befitting the times, YTM aims to reinvigorate this beautiful historic building as an engaging hub that connect the dots across the many facets within the TM Group and beyond, to include the industry and overall ecosystem. Within TM Group, it aims to showcase talents from Multimedia University (MMU) students, alumni and faculty in digital, creative and cinematic arts as well as TM's heritage and innovation in telecommunications. Concurrently, this is extended to the rich ecosystem of collaboration partners in the same fields. In 2018, YTM launched the Telegraph Museum, Taiping graced by HRH the Sultan Perak, Sultan Nazrin Muizzuddin Shah. This unique and niche museum features the history of the country's telegraph communications system including its maiden breakthrough in Taiping, Perak and how technology has contributed to the development of the nation. Both Muzium Telekom Kuala Lumpur and Telegraph Museum Taiping aim to be key resources for students, researchers and the communities to deepen their understanding on the complex telecommunications industry and how it has contributed to both nationbuilding and the world telecommunication history. YTM is calling for interested parties to participate in two (2) RFPs issued earlier. Details are as follows: 1) Request For Proposal (RFP) On Food And Beverage (F&B) Operator At Muzium Telekom, Kuala Lumpur YTM is seeking F&B companies who are capable to manage end-to-end F&B outlets' operations at Muzium Telekom KL. The scope will be covering F&B outlets' concept (inclusive design & build), compliance to heritage building guidelines, F&B business model and operations. There are TWO (2) F&B outlets available at Muzium Telekom whereby the interested party can choose to operate F&B outlet 1 that is located at the corner lot in the front of main road or/and F&B outlet 2 which located in the courtyard of museum. These share a common kitchen located next to outlet 2. 2) Request Of Proposal (RFP) For The Appointment Of Museum Operator (Service Provider) For Muzium Telekom Kuala Lumpur And Telegraph Museum Taiping YTM is seeking proposals from firms / consortiums or interested qualified parties with experience in the museums / galleries / arts and culture / tourism or related experience industries to be The Museum Operator (Service Provider) for Muzium Telekom Kuala Lumpur and Telegraph Museum Taiping; and implement The Muzium Telekom Transformation Plan 2022-2024 By the year 2024, YTM hopes to complete the new museum experience built on the theme of "Art & Technology: Future Forward", providing access to a variety of experiences that educate, inspire and engage the public with telecommunication technologies and innovations. The new Muzium Telekom will unveil more than 27,000 sq ft of completely reimagined spaces, including its National Telecommunication Gallery, Digital Art Gallery, Museum Black Box Theater, Museum Cafe & Restaurant, Kids Discovery, Thematic Exhibition Rooms and many more. The RFPs can be downloaded at https://bit.ly/museumoperator or https://bit.ly/RFPmuseumcafe. The deadline for submitting proposals for Food And Beverage (F&B) Operator is 16 September 2022 and Museum Operator (Service Provider) For Muzium Telekom Kuala Lumpur And Telegraph Museum Taiping is 20 September 2022. YTM looks forward to all proposals and wishes participants all the very best in making these aspirations a reality for the community and the city.
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