30 May 2024

TM Announces a Positive Start in 1Q 2024, Sustaining its Continuous Growth Trajectory

TM Announces a Positive Start in 1Q 2024, Sustaining its Continuous Growth Trajectory Article Header
TM

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 & Astro collaborate to deliver high quality digital experience

TM provides Astro with full suite of wholesale infrastructure and connectivity solutions to enable Astro to serve its customers with reliable broadband and content services. Telekom Malaysia Berhad (TM) and Astro Malaysia Holdings Berhad’s wholly-owned subsidiary, MEASAT Broadcast Network Systems Sdn Bhd (Astro) today inked deals to collaborate in delivering a high quality digital experience to all Malaysians. The collaboration also signifies both companies' commitment to support the “Jalinan Digital Negara” (JENDELA) initiative in providing wider broadband coverage and a better experience nationwide. The agreements were signed by Imri Mokhtar, Group Chief Executive Officer of TM and Amar Huzaimi Md Deris, Executive Vice President, TM WHOLESALE while Astro was represented by Henry Tan, Group Chief Executive Officer and Shafiq Abdul Jabbar, Group Chief Financial Officer. Through this strategic collaboration, TM, via TM WHOLESALE, its global and wholesale business arm, will provide Astro with a full suite of infrastructure and connectivity solutions that comprises the whole range of wholesale services inclusive of high speed broadband (HSBB), bandwidth, backhaul and Internet access. This extensive and robust fibre network infrastructure will enable TM together with Astro to provide high-quality and reliable connectivity to their end-users. With TM’s HSBB service, Astro also will be able to provide broadband services to its customers without having the need to build a new infrastructure while extending its coverage to wider areas across the country via a fibre network. As for Internet services, TM’s internet access solution will enable Astro to offer high performance internet connectivity and a comprehensive solution to its customers. To complete the services, TM will also provide Astro with its Content Delivery Network (TM CDN), a newly developed content platform service that delivers seamless, faster and secure digital content. This will enable Astro to strengthen its video streaming efficiency to its current service offerings. Commenting on the collaboration, Imri said: “TM as the leading infrastructure partner for High Speed Broadband wholesale services, leveraged its superior network nationwide to support the industry’s broadband growth. We are also the primary mobile backhaul infrastructure provider for the industry with extensive coverage and capacity. As the digital infrastructure accelerator in Malaysia, we have always been a strong advocate of infrastructure sharing. Thus we are honoured to be given this opportunity to leverage each other’s expertise to provide Malaysians with high quality broadband and content services that we have. This strategic collaboration also demonstrates our commitment to ensure Malaysians are provided with a seamless and “always-on” connectivity experience. We are happy to work with Astro and this is yet another testament to our pivotal role as the enabler of Digital Malaysia aspirations.” Meanwhile, Henry Tan said: “This strategic partnership with TM lays the foundation for Astro to be an internet service provider. Astro’s goal is to provide Malaysians with the best digital experience and broadband value proposition. Leveraging on the strength of TM’s wide HSBB network will enable Astro to realise new revenue streams, scaling our broadband service with content bundles, or standalone broadband and other product lines. This deal gives us more flexibility to offer great value and convenience to our customers.”

Communications and Multimedia Minister confident with nation’s digital infrastructure after visit to TM Network Operations Centre

Communications and Multimedia Minister, YB Tan Sri TPr Annuar Haji Musa expressed his confidence with the nation’s digital infrastructure to deliver Malaysia’s communications and digital aspirations for now and into the future. He expressed this after a working visit to the TM Network Operations Centre in Cyberjaya today. “I’m very happy with the visit today and from what I see, I’m confident that we have the people, capabilities and infrastructure to ensure 100% connection all over the country. We will leave no Malaysian behind,” YB Tan Sri TPr Annuar Haji Musa said after the visit. TM’s state of the art network operations centre serves as the brains of the nation’s digital and communications infrastructure managing over 600,000 km of communications cables and over 26,700TB data daily. The centre also monitors the health and operations of the 30 submarine cable systems that carries 1,990TB of internet data into and out of the country. Commenting on the visit, TM’s Chairman, Dato’ Mohammed Azlan Hashim said, “We are honoured to have YB Tan Sri TPr Annuar and his senior officers from the Ministry and MCMC with us. This visit gives us the opportunity to showcase the various customer segments we serve and the strength of digital technology available and ready to serve our customers.” “Befitting our unique and important role as the nation’s connectivity and digital infrastructure provider and the enabler of Digital Malaysia, we are ready to serve Keluarga Malaysia with our comprehensive communications and digital solutions. As a Government-Linked Company (GLC), TM remain commited to contribute towards the country's development through telecommunications and digital in support of the country's digital aspirations including JENDELA and MyDIGITAL towards accelerating the country towards a full-fledged Digital Malaysia by 2023,” he added. The visit today is expected to nurture even closer ties between both parties.

TM Wholesale and radian arc collaborate to expand cloud gaming offerings to the ASEAN market

Collaboration signifies TM’s commitment to expand cloud gaming in the ASEAN region, leveraging Radian Arc’s Graphics Processing Unit (GPU) Edge Point of Presence TM Wholesale, the domestic and international wholesale business arm of Telekom Malaysia Berhad (TM), today announced a partnership with cloud infrastructure provider Radian Arc to expand its cloud gaming offerings in Malaysia and other ASEAN countries. The collaboration will see both parties leveraging each other's strengths to provide users with high-quality content and cloud-gaming experiences.   Through this partnership, both companies will collaborate to deploy a new point of presence (PoP) in Malaysia, utilising Radian Arc's proprietary GPU Edge technology. This PoP will enhance TM Wholesale's cloud-based gaming solutions as well as other real-time applications that use similar technology.   The availability of this robust platform ensures that these central processing units (CPUs) can provide relevant applications at a lower cost to serve. Following the rollout of the cloud gaming platform, TM Wholesale and Radian Arc intend to make an array of cloud-based applications, such as Artificial Intelligence (AI), Blockchain, and the Internet of Things (IOT) accessible to users in order to accelerate digital transformation and adoption, which is pivotal to Malaysia's digital aspirations. Radian Arc is also partnering with cloud gaming platform Blacknut to bring their games catalogue to the region, reinforcing TM Wholesale's vision of providing better cloud gaming solutions. Through this partnership, TM Wholesale will be able to offer over 500 family-friendly premium games to service providers, with lower latency and faster start times for their customers. Commenting on the collaboration, Amar Huzaimi Md Deris, Executive Vice President of TM Wholesale said, "TM Wholesale has always been committed to promoting Malaysia's transition to an advanced digital economy, and given the meteoric rise of cloud gaming, we've shifted gears to put this into a higher drive. "Our collaboration with Radian Arc is among our efforts to fulfil the demands of the gaming industry, while exploring opportunities in other emerging technologies such as cloud and edge computing, and ensure customers enjoy high-quality digital experiences. "This is in line with our aspiration to position Malaysia as a regional digital hub and expand our reach via edge computing platforms to provide better user experience for next-generation applications and games," he added. "As we continue to expand access to cloud gaming around the world, we want to find partners who can elevate our service offerings to telcos and improve the gaming experiences we provide to players," said David Cook, CEO of Radian Arc. "The collaboration will also look into possibilities for future applications leveraging TM's extensive network coverage, allowing us and Blacknut to improve the quality of cloud gaming for customers in Malaysia and the surrounding regions." The collaboration with Radian Arc symbolizes a new era of gaming for TM, harnessing the benefits of GPU Edge technology to deliver high-quality digital experiences to end users.

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