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 takes action to curb further Covid-19 spread; continues to serve the nation with essential services
Reactivates “Work From Home” nationwide following new cases recorded Telekom Malaysia Berhad (TM) today confirmed that since its previous announcement on 11 October 2020, ten (10) further positive cases of Covid-19 have been recorded amongst its employees; bringing a total of 13 positive cases thus far. The newly affected areas include Menara TM and TM Annexe 1 in Kuala Lumpur as well as at a network node in Rawang. This is in addition to the earlier affected areas of Menara TM ONE in Damansara, Kuala Lumpur and Kepayan office in Kota Kinabalu. From the 13 cases, the Company is pleased to announce that three (3) employees have been discharged from the hospital and quarantine centre they were admitted to, and are continuing their recovery and home-quarantine for 14 days. Meanwhile, the other ten (10) employees are currently receiving treatment. Following the new positive cases, detailed contact tracing is being carried out by the Ministry of Health (MoH), assisted by TM's COVID-19 Crisis Response Team (CRT), to identify and inform those whom had close contact with the affected employees. Identified close contacts are being contacted by MoH for further advice and action. TM immediately took the necessary actions which include immediate closure of the affected premises for seven (7) days to facilitate thorough disinfection and sanitisation in accordance to the guidelines set by MoH. The disinfection and sanitisation works at TM Annexe 1 and the network node in Rawang have been completed on 14 October 2020, Menara TM ONE on 13 October, while the work at Menara TM is ongoing and expected to be completed by 5.00 pm today. TM offices in Sabah, Kedah and other Red Zone areas had been closed much earlier as proactive precaution in correspondence to the increasing cases there recently. With immediate effect, TM is also activating "Work From Home" (WFH) arrangements for all Warga TM nationwide until 31 October 2020. On Monday, TM had implemented the same for TM employees in Selangor, Kuala Lumpur and Putrajaya, ahead of the Conditional Movement Control Order (CMCO) announced. Commenting on the latest developments, Group Chief Executive Officer of TM, Imri Mokhtar said, "The sudden rise in cases amongst our Warga TM family, and indeed throughout the nation is of worrying concern. I join the Board, management and all Warga TM in praying for the speedy recovery of the affected employees as well as for the safety, protection and health of all Malaysians during these testing times. Meanwhile, we have taken immediate action and activated safety protocols for the buildings and areas affected. Most importantly for our employees, we are announcing working from home arrangements for all Warga TM nationwide effective today till the end of October. As TM provides essential services for the nation, our frontliners involved in critical functions serving our wide base of customers shall continue to work, adhering to the SOP guidelines from the authorities." "Over 4,700 critical function employees at our TMpoints, contact centres, field teams for service installation and restoration continue to lead the front line in serving our community, businesses and Government in the Red Zones. This is even more important especially when many Malaysians are now back to working from home. To all the TM frontliners and the TM Covid-19 Response Team (CRT), our highest appreciation for stepping up in the line of duty, and our prayers for your safety and protection," he added. TM is also providing free Covid-19 swab tests in collaboration with its panel of medical service providers for employees who may have been exposed to the virus. This is yet another proactive measure taken by the Company to curb the spread of the virus amongst its employees. Identified employees can undergo the test from 15 October 2020 onwards at a temporary drive-through facility set up at Menara TM. More facilities will be set up at other locations, if required. TM would also like to remind everyone at all times to keep safe social distance, hygiene and adhere to the SOPs as advised by the Government. The Company urges everyone who has any symptoms to seek medical attention and not risk further exposure to their loved ones and anyone else. TM wishes for the safety and health of all Malaysians nationwide; together may we return stronger.
TM shines the spotlight on an unsung hero this Hari Kebangsaan through interactive 360º wayang kulit performance
Most of us are familiar with the many great gentlemen heroes who fought for the nation’s Independence, such as Tunku Abdul Rahman and Dato' Onn Jaafar. This year, however, Telekom Malaysia Berhad (TM) is shining the spotlight on one of the women “Tokoh Kemerdekaan”, Tan Sri Hajah Zainon Binti Sulaiman, also known as Ibu Zain, who played a pivotal role in inspiring Malaysians to unite and stand up as one. Her inspiring yet lesser-known story was captured in a Hari Kebangsaan and Hari Malaysia film titled “Ibu, Kisah Seorang Tokoh Kemerdekaan”, to celebrate the spirit of Malaysia’s independence and as an example of strength through unity. Aptly and equally inspiring too is that the film is narrated by her own daughter, Fadzilah Amin (Tok Lah), one of the most respected lecturers and educators in the country. The film is part of TM‘s Mengukir Malaysia initiative to celebrate and preserve our local culture through innovative technologies that enhances and elevates its delivery and enables Malaysians of all ages to better appreciate the richness of Malaysia’s heritage. Aimed at reconnecting people with the nation’s history and preserving the country’s rich heritage, TM brought to life the art of Wayang Kulit (shadow play), one of the earliest forms of animation in Southeast Asia, to tell the story of Ibu Zain. The project was born from one premise: ‘What if we could shine a light on a forgotten Malaysia hero through an art form that is also fading?’ Shanti Jusnita Johari, Chief Marketing Officer, TM, said, “Through our Mengukir Malaysia initiative, we aspire to leverage technologies that not only changes the way we live, work and play, but also enhances our perspectives and ideas, drawing from our local culture and history to remind us about what’s made us a great nation. “This Hari Kebangsaan and Hari Malaysia, we wanted to remember and celebrate Malaysia’s many unsung heroes, such as Ibu Zain, who made our country great. We hope that through this short film, people will be encouraged to learn more about this historical icon as we commemorate her legacy via Wayang Kulit, one of the first forms of storytelling by our ancestors which we must also preserve.” In ensuring that the film stays true to the ancient art of Wayang Kulit, TM found the perfect partner in Tintoy Chuo and his Tok Dalang from Fusion Wayang Kulit, who are renowned for their unique take on the art of Wayang Kulit. Their efforts to bring Wayang Kulit into the digital 21st century has garnered international attention, putting Malaysian Wayang Kulit on the world map. For this collaboration, TM and Tintoy Chuo weaved in virtual reality technology, bringing the Wayang Kulit experience to school children from across the nation’s 13 States. Sharing Ibu Zain’s story in a way that harmonised both heritage and digitalisation was one of the messages TM aimed to highlight about Malaysia’s unique make up and to celebrate both its history and aspirations during this Hari Kebangsaan. On top of the Hari Kebangsaan film, audiences can also visit www.tm.com.my/mengukirmalaysia to immerse themselves into the world of Wayang Kulit, Ibu Zain and TM‘s Mengukir Malaysia initiative through videos, a 360º interactive Wayang Kulit experience, behind the scene content and many more. Fans of Wayang Kulit can also visit TM‘s social media pages to use the Wayang Kulit filters and be part of the show.
TM One Appointed Digital Infrastructure Strategic Partner For Sarawak Digital Economy Corporation
KUCHING, 27 October 2023 – TM One has been appointed as the preferred converged digital infrastructure strategic partner for the Sarawak Digital Economy Corporation (SDEC). Through this partnership, SDEC and TM One will collaborate to identify and implement digital solutions that will enable the aspirations tabled in the Sarawak Digital Economy Strategy and Post Covid Development Strategy (PCDS) 2030, spurring the growth of Sarawak’s digital economy, digital society and digital government. This joint initiative aims to increase access and adoption of digital services in Sarawak, bridging the digital divide and empowering greater digital inclusivity among all Sarawakians. Leveraging its managed networking services, TM One will power the Sarawak Multimedia Authority Rural Telecommunication (SMART) project for rural and underserved communities. Shazurawati Abd Karim, TM One’s Executive Vice President said, “TM One is honoured to work with SDEC and serve as its strategic partner to empower Sarawak’s digital aspirations. As the largest and most geographically diverse region in Malaysia, the opportunities and challenges to digitally transform its various populations are truly unique. We are confident in serving the needs of the region not only through our solutions, but also with our proven local and international technology leaders to deliver cutting-edge solutions to various sectors. “We look forward to partnering SDEC in co-creating innovations and growth opportunities that will power digital societies, businesses and Government, and propel Sarawak towards its next phase of digital progress and economic development,” she shared. “SDEC is proud to announce this strategic partnership with TM One as we continue our effort and pursuit in digitalising Sarawak. This collaboration enables the parties to leverage on each other’s skillset and work in tandem to unlock new and potential opportunities for the benefit of our people, particularly the state’s infrastructure, and subsequently increase access to digital services and information as well as enhance online experiences and improve livelihoods for Sarawak’s citizens in the digital economy,” said Ir. Ts. Sudarnoto Osman, Chief Executive Officer of SDEC. With Sarawak’s digital economy expected to contribute RM56.4 billion to Sarawak’s GDP by 2030, TM One and SDEC also aim to raise awareness and enable the digital transformation of private corporations and enterprises through emerging IR 4.0 technologies. This includes insights and access to TM One’s suite of next generation networking solutions, data centre and cloud services, smart services, 5G, cybersecurity and other digital solutions, which will enable better operational efficiency and innovation among industries. TM One is committed to grow Sarawak’s digital business ecosystem and will render its expertise and services to support SDEC’s role in six digital growth areas, namely: consultancy, innovation and entrepreneurship, digital infrastructure, technology services, digital economy projects, and research and product development. TM One will further drive digital innovation tailored to the needs of Sarawakians by providing connectivity to nine digital innovation hubs across Sarawak.
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