30 May 2024
TM Announces a Positive Start in 1Q 2024, Sustaining its Continuous Growth Trajectory
Q 2024 Key Highlights (vs 1Q 2023)
- Operating revenue grew 1.8% to RM2.84 billion
- EBIT increased 37.5% from RM473.3 million to RM650.9 million
- PATAMI increased 28.7% from RM330.1 million to RM424.8 million
KUALA LUMPUR, 30 May 2024 – Telekom Malaysia Berhad (“TM” or “the Group”), today announced a positive start to the fiscal year, with a strong financial performance for the first quarter ended 31 March 2024 (1Q 2024).
The Group saw its revenue increase by 1.8% to RM2.84 billion, driven by solid performance from TM Global and growth in Unifi’s subscriber base. Correspondingly, Earnings Before Interest and Tax (EBIT) grew 37.5% to RM650.9 million in the quarter under review on the back of lower total Operational Cost.
TM’s Profit after Tax and Non-Controlling Interests (PATAMI) increased by 28.7% to RM424.8 million, demonstrating its sustained profitability.
Meanwhile, the Group’s Capital Expenditure (CAPEX) stood at RM204.0 million, or 7.2% of its revenue. These investments were aimed at expanding the Group’s network infrastructure nationwide and regional submarine cable systems.
Amar Huzaimi Md Deris, TM’s Group Chief Executive Officer said, “Entering 2024, the operating environment remains challenging due to increased competition and evolving market dynamics. Nevertheless, the Group has shown a positive growth trajectory in the first quarter of 2024. This is evidenced by increased revenue, improved profitability, and steady growth in our fixed broadband subscribers, reaffirming our strong position in the market.
“To sustain our positive momentum, we will continue enhancing our retail convergence offerings and value-added solutions in delivering improved customer experience. At the same time, we maintain a strong focus on modernising our data and network infrastructure, as well as enhancing our business-related offerings to meet current and future digital needs.
“Moving forward, as part of our transformative journey towards becoming a Digital Powerhouse by 2030, our priorities over the next few years include growing our core businesses, enhancing beyond connectivity by embedding Artificial Intelligence (AI) and capturing new business growth to meet future demands. In addition, we will continue to optimise costs and enhance profitability to ensure better returns for our shareholders,” Amar concluded.
The Group maintains a positive outlook for the current year, staying aligned with the previously provided 2024 guidance.
Lines of Businesses (LOBs) Performance
Unifi maintains leadership in converged services
Unifi maintained consistent year-on-year (YoY) growth with a 1.8% increase in fixed broadband subscribers, reaching a total of 3.135 million. This is driven by convergence marketing strategies, aggressive sales and customer retention programmes. It recently launched UniVerse, the best convergence plan to date for broadband, mobile, entertainment, and digital lifestyle solutions, designed to enhance connectivity, content and Home Hub needs of today’s customers. For more information about Unifi UniVerse, visit www.unifi.com.my.
During the quarter, Unifi Business, the leading digital solutions partner of over 400,000 Micro, Small and Medium Enterprises (MSMEs) nationwide, partnered with Maybank Islamic Berhad to launch ‘Go Niaga’, a mobile banking bundle to help businesses manage finances and improve income with digital payment options. It also launched e-Pharmacy Solution, a mobile app enabling e-prescriptions via teleconsultation to provide digital inclusion and accessible healthcare for prescribed medications and wellness especially to the underserved communities.
Looking ahead, Unifi will continue to solidify its role as a leader in convergence to deliver unmatched converged digital services.
TM One drives innovative solutions for enterprise and Government
TM One, the enterprise and government sector business solutions arm of TM continues to adapt to market dynamics while seeking new opportunities for growth. During the quarter under review, it recorded a revenue of RM673.0 million.
In February, TM One launched the Innovation Lab and Enterprise 5G Lab to accelerate the realisation of emerging digital services and solutions. These labs bring together the latest technologies, digital leaders, inspiring ideas and collaborative spaces to create tailored solutions for its customers and partners. These facilities were set to further develop key areas like Enterprise 5G and innovative AI-powered industry solutions to help organisations thrive in the digital era.
Moving forward, TM One will continue to strengthen its core connectivity offerings while driving innovation in digital services, expanding partnerships, and developing solutions that empower its customers.
TM Global positions Malaysia as a digital hub for the region
TM Global saw a 12.1% YoY increase in revenue to RM742.8 million in 1Q 2024, fuelled by demand for domestic and international data. It has remained as Malaysia’s preferred network infrastructure provider, catalysing the digital industry, fostering 5G ecosystem and expanding High-speed broadband (HSBB) Access in the country. Globally, it provisioned significant managed wavelength capacity for hyperscalers, connecting key regional data centres. It also recorded substantial growth in Content Delivery Network (CDN) traffic to cater to the demand from digital players, enabling Malaysia as a digital hub for the region.
TM Global recently received recognition in two categories: Telecom Company of the Year – Malaysia, and the Wholesale Company Initiative of the Year – Malaysia, at the Asian Telecom Awards held in Singapore. This is the second consecutive year TM Global has received these accolades, maintaining its leadership as a shaper of the telecommunications landscape in Malaysia and across ASEAN.
TM Global will continue to broaden its digital infrastructure solutions while forging strategic alliances with global carriers to facilitate seamless digital connectivity and services across borders.
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TM IS SUPPORTIVE OF INITIATIVES THAT ENHANCE THE BENEFITS OF 5G; HAS VAST FIBRE COVERAGE TO SUPPORT ITS IMPLEMENTATION
TM acknowledges the decision made by the Government on the 5G dual network. We remain supportive of initiatives that enhance the benefits of 5G technology for the rakyat, businesses, and the nation as a whole. We trust this will drive Malaysia's digital transformation, advancing connectivity, innovation, and economic growth across sectors. As Malaysia’s leading fibre infrastructure provider, TM has extensive nationwide fibre coverage, robust digital platforms, and proven rollout experience. We leverage our core competencies to support the industry’s technological advancement, including the 5G ecosystem. TM is committed to providing high-quality converged digital offerings across various segments of its customers. We remain focused on delivering 5G services and solutions to our consumers and business segments. Our priority is to ensure that all customers continue to have seamless access to reliable 5G services and ecosystem. With a goal to be a Digital Powerhouse by 2030, TM is committed to playing a key role in building a digital nation, continuously supporting the 5G ecosystem, and driving digital innovation for all Malaysians.
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