25 May 2023

TM Records a Promising 1Q2023 Performance with 2.0% Revenue Growth; Continues to Strengthen its Core Business

TM Records a Promising 1Q2023 Performance with 2.0% Revenue Growth; Continues to Strengthen its Core Business Article Header
TM

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.”

YOU MAY ALSO LIKE

30 Oct 2023
TM Global Expands Network Infrastructure To Boost High-Speed Connectivity For Sabah And Sarawak

KUALA LUMPUR, 30 October 2023 – TM Global, the wholesale domestic and international business arm of TM, today announced the successful deployment of two additional International Internet Gateways (IGW) in Sabah and Sarawak. These IGWs will serve as crucial hubs for international Internet traffic exchange, reflecting the business’ commitment to continuously expand its local network infrastructure and offer high-speed Internet connectivity in East Malaysia. This network expansion will enable TM’s customers in East Malaysia and the neighbouring region to access global internet traffic via the most efficient route. By reducing the need to route traffic back to West Malaysia, these IGWs will significantly enhance connectivity speed and reliability for businesses, service providers and their end-customers. The two IGWs are located in Penampang (Sabah) and Stampin (Sarawak), strengthening TM Global’s existing Internet Exchange (IX) nodes across Sabah and Sarawak. The existing nodes in Sabah are in Kota Kinabalu, Inanam, Elopura, Menggatal and Putatan. Meanwhile, in Sarawak the nodes are in Kuching, Bintulu, Miri, Petra Jaya, Kuala Baram and Tabuan Jaya. Commenting on the initiative, Khairul Liza Ibrahim, TM Global’s Executive Vice President said, “As a strategic partner to enable Malaysia’s digital agenda, the deployment of these new IGWs reinforces our mission to connect Malaysia globally. “More importantly, these IGWs help bridge the digital divide between urban and rural areas in Sabah and Sarawak, benefitting densely populated areas and enhancing Internet coverage for communities in smaller towns and remote locations. This will help drive digital opportunities for education, job prospects and entrepreneurship that will uplift these communities into the digital economy. “This amplified network reach also empowers TM Global to curate a more enriched digital experience, facilitating the global dissemination of substantial content at faster speeds while minimising latency. This advancement aligns with the progressive trajectory of 5G technology, demonstrating our unwavering dedication to position Malaysia as a trusted digital hub within the ASEAN region,” she concluded.

12 Oct 2023
Unlimited Support For Harimau Malaya With Unstoppable Uni5g

KUALA LUMPUR, 12 October 2023 – TM is pleased to announce an immersive digital experience that can be enjoyed by local football fans and Harimau Malaya supporters in a combined effort with the Football Association of Malaysia (FAM). As the Official Technology Partner for FAM and Harimau Malaya, TM, through Unifi Mobile, has teamed up with Fresnel Group of Companies to revolutionise the home football viewing experience. With innovations such as 360° Live Streaming of matches and a Virtual Reality (VR) Tour of the National Stadium Bukit Jalil powered by 5G, fans will enjoy an enhanced experience when cheering for our national team during the upcoming Pestabola Merdeka, both at home and on-the-go. On 13th October, fans can experience the Malaysia vs India match from diverse angles in a stunning 8K quality made possible through 360° Live Streaming, enabled by 5G technology. This immersive experience is delivered through dual 360° cameras strategically positioned at the National Stadium Bukit Jalil’s grandstand and goalposts, offering a one-of-a-kind viewing experience that allows fans to be virtually part of the action and feel the pulsating energy of the stadium. Malaysians are invited to immerse into this experience by tuning in to Unifi’s YouTube channel (youtube.com/@UnifiYourWorld) or visiting unifi.com.my/harimaumalaya. Hardcore football enthusiasts should also not miss the opportunity for an interactive VR Stadium Tour, exclusively accessible through Unifi Mobile Prepaid’s Limited Edition Harimau Malaya starter packs. This unique experience offers fans the chance to explore National Stadium Bukit Jalil – the proud home of Harimau Malaya. Fans will gain access to iconic behind-the-scenes locations including locker rooms and training facilities, previously unseen by the public. Through UNI5G, fans can virtually experience the excitement of the pitch as if they were physically present there, all from the comfort of their own homes or while on the go. Shanti Jusnita, TM’s Chief Marketing Officer said, “We are proud to partner with FAM and Fresnel Group of Companies in supporting Harimau Malaya and our local football scene. We have always seen football to be a bridge where Malaysians come together to support our Harimau Malaya team. As an enabler for Digital Malaysia, we are doing our part to innovate the digitisation of home football by bringing 5G applications and experiences to Malaysians through our UNI5G.” Unifi has been crowned the 2023 award winner by Ookla® for delivering the best mobile video experience in Malaysia. As the nation comes together to rally behind our Harimau Malaya team during Pestabola Merdeka, fans can be confident they are backed by the nation’s leading mobile video experience provider. In addition, through the Unifi Mobile Roar Louder campaign, fans visiting the Unifi Mobile booth at the Pestabola Merdeka from 13 to 17 October will have an exclusive chance to grab the coveted Limited Edition Harimau Malaya Jersey, Harimau Malaya Mafla, general access tickets and an instant RM5 cashback when they purchase UNI5G Prepaid Monthly Unlimited Plan, which includes Unlimited 4G+5G Data, Unlimited Calls and 5GB Hotspot – all for only RM45. Datuk Haji Hamidin Haji Mohd Amin, President of FAM said, “We are glad to see the efforts and outcome from the partnership we have with TM at this point.  We are excited to present to our local football fans this 360° immersive viewing experience. Offering this experience with the long missed Pestabola Merdeka will hopefully be something unforgettable.” Fans are also invited to visit the Unifi Mobile booth at the National Stadium Bukit Jalil on 13 - 17 October to participate in various exciting activities. To know more about Unifi Mobile Prepaid and its exclusive offering, visit unifi.com.my/prepaid. *Unifi is Malaysia’s Speedtest Awards™ winner for Best Mobile Video Experience during Q1-Q2 2023 period. Based on analysis by Ookla® of Speedtest Intelligence® data for Q1–Q2 2023. Ookla trademarks used under license and reprinted with permission.

03 Oct 2020
TM helps local entrepreneurs in Perlis to meet their digital needs

“Program Usahawan Digital Bersama TM” is set to empower local entrepreneurs in Beseri and Padang Besar with digital tools ​​​​Telekom Malaysia Berhad (TM), through TM Perlis and Kedah, today organised a special programme on digital awareness for local entrepreneurs in Beseri and Padang Besar at Dewan KEMAS, Alor Tampang, Beseri, Perlis.​ Aptly titled "Program Usahawan Digital Bersama TM", the programme was officiated by YB Datuk Zahidi Zainul Abidin, Deputy Minister of Communications and Multimedia Malaysia. Also present were YB Rozieana Ahmad, Exco of Education, Human Resource Development, Science and Technology Innovation, Information Technology and Communications, Datuk Rozlan Mohamed, Regional Head Northern, TM, Anis Ahmad Mohd Ibrahim, State General Manager, TM Perlis and Kedah, as well as Azhar Abdul Rahman, State Office Director, Malaysian Communications and Multimedia Commission (MCMC). Speaking at the event, YB Datuk Zahidi said: "The Government continues to organise programmes skewed towards the development of digital economy, which are very relevant in today's new normal. In shifting the entrepreneurs to digital journey, it needs to be supported with the right skills and knowledge in ensuring the entrepreneurs' sustainability. Thus, we laud TM's initiatives such as today's event to increase the digital awareness and further promote the adoption of digital tools amongst the local entrepreneurs, including in sub-urban area." Meanwhile in his speech, Datuk Rozlan said that this programme reflects TM's commitment towards enabling the digital economy. "Digital is the way to go and "the name of the game" for businesses nowadays. So businesses, including local entrepreneurs need to keep abreast of and quickly adapt the digital technologies to stay ahead. Today's "Program Usahawan Digital Bersama TM" is among our initiatives to facilitate this and we are excited to play our role towards this end." "We have various solutions for entrepreneurs to get on board the digital journey to grow their business further. So, we really hope they will grab this opportunity to get business tips and know-how for their benefits. In addition, we are rapidly upgrading our network infrastructure in Beseri and Padang Besar to Fibre-to-the-home (FTTH) to enable communities in the areas to enjoy unifi high speed broadband services. This fits well with the Jalinan Digital Negara (JENDELA) action plan which aspires to deliver connectivity for all," he added. The overall network upgrading exercise for Perlis is expected to be fully completed by end of 2021. At the event, TM Perlis and Kedah also handed over its zakat contribution of RM250 each to 15 selected asnaf residing in Beseri reflecting its caring side to the communities.​ 

NEWSLETTER

Just drop your details and stay updated with the world of Telekom Malaysia. We promise – no spam!​