25 Aug 2023
TM Records Stronger 2Q 2023 Financial Performance; Sustaining the Group’s Growth Momentum
KUALA LUMPUR, 25 August 2023 – Telekom Malaysia Berhad (“TM” or “the Group”) recorded a stronger financial performance in the second quarter of the year that ended 30 June 2023, compared to the same period in the previous year.
Its operating revenue grew 0.3% to RM3.10 billion, propelled by Unifi’s expansion which saw a substantial increase to 3.11 million fixed broadband subscribers. The growth was also due to TM Global’s solid 10.0% revenue growth driven by higher demand for domestic and international data services.
Profit After Tax and Non-Controlling Interest (PATAMI) rose 50.4% from RM378.0 million to RM568.7 million due to lower net finance cost and the recognition of tax credits from unutilised tax losses.
TM’s Capital Expenditure (CAPEX) allocation for the first half of 2023 stood at RM942.8 million, which accounts for 15.6% of the overall revenue for the expansion of network infrastructure to enhance nationwide coverage.
Meanwhile, Earnings Before Interest and Tax (EBIT) was lower by 10.3% at RM630.0 million from RM702.7 million, due to higher preventive maintenance costs to better serve our customers and higher depreciation from revision of asset useful life.
TM declared a higher Interim Dividend of 9.5 sen per share. This is a testament of the Group’s positive financial performance and its ongoing commitment to shareholder value.
Commenting on these results, Amar Huzaimi Md Deris, TM’s Group Chief Executive Officer said, “We are pleased with this quarter’s performance, which is marked by overall positive results across our Lines of Business (“LOBs”). These achievements further strengthen TM’s growth momentum in facing a more competitive market.”
“In the coming months, TM expects to face a more challenging marketplace but remains confident in our overall positive financial performance. The Group remains steadfast to continue strengthening its core business to be commercially sustainable whilst also continuing to contribute to the nation’s growth.
“TM is excited by the huge potential of fixed, mobile and lifestyle convergence in the digital market, as well as digital infrastructure and solutions for MSME, enterprise and government sectors, whilst pursuing to capture opportunities from International partners including hyperscalers.
“We also remain committed to continuously invest in expanding our network to enable the nation’s progress towards a Digital Malaysia. TM will continue to collaborate closely with the Government to serve as the nation’s trusted partner to grow Malaysia’s overall connectivity and digital ecosystem, including 5G,” Amar concluded.
LINES OF BUSINESS PERFORMANCE
Unifi drives growth with enhanced services and market leadership
Unifi’s revenue increased 0.5% to RM1.41 billion, driven by growth in fixed broadband subscribers reaching 3.11 million from consumer and Micro Small & Medium Enterprises (“MSME”) segments.
Reinforcing its market leadership in fibre broadband services, Unifi unveiled its Ultra Gigabit Broadband Plans with 1Gbps and 2Gbps packages designed to empower digital households and expedite the growth of MSMEs.
Unifi also strengthened its position by introducing innovative Uni5G postpaid and prepaid all-in-one 4G and 5G mobile plans, enhancing its fixed-mobile convergence value proposition.
Unifi’s lifestyle services arm, Unifi TV, continued its pursuit of enriching user experiences by integrating popular streaming apps such as Netflix into its diverse portfolio. This move bolsters Unifi TV’s value proposition and adds to the variety of content available to users.
The availability of a comprehensive convergence proposition encompassing gigabit fixed broadband, innovative 5G mobile packages and lifestyle services is the only offering of its kind in the industry. This is delivered over the best fibre network, superior 4G network coverage and expanding 5G nationwide footprint that offers elevated connectivity experiences at home and on-the-go.
As a market leader, Unifi Business launched its Digital Marketing Solution (“DMS”) to encourage the MSME segment develop stronger brand presence and online visibility. As the latest addition to its line-up of connectivity and business solutions, DMS complements and augments Unifi Business’ existing offerings and will propel digital adoption among businesses.
Earning further accolades, Unifi Business received the “Best Business Fixed Broadband Service Provider” award from PC.com during the period under review.
TM One Drives Innovation with Smart Solutions and Private 5G Advancements
TM One experience a decline in revenue by 11.4% to RM732.0 million in 2Q 2023 as a result of price reductions in connectivity services and lower one-off revenue from customer projects.
To mitigate this, TM One is driving the rapid development of smart innovative solutions for verticals such as smart cities, healthcare, agriculture and industries. As a trusted digital partner for large enterprises and government, TM One is also leading Private 5G propositions and solutions across diverse industries spanning across oil & gas, transportation hubs and manufacturing to drive the country’s advancement.
As the largest local cloud provider, TM Cloud Alpha remains the preferred local sovereign hyper-scaled cloud for data residency and locality in Malaysia.
It has also reinforced its role in shaping Malaysia’s modern urban landscapes by being the strategic partner for smart city low-carbon initiatives with local councils. Along with its growing local and global partnerships, it has been appointed to implement and support various digital transformation programmes for its customers.
In recognition of its industry excellence across a suite of end-to-end next generation business solutions, TM One received the accolade for "Best Enterprise Telco" from PC.com.
TM Global on track to make Malaysia the preferred digital hub for ASEAN
TM Global recorded a 10.0% solid revenue growth from RM739.9 million to RM813.6 million, contributed by higher demand for both domestic and international data services.
TM Global remains steadfast in solidifying its stature as Malaysia’s preferred network infrastructure provider, catalysing digital industry and 4G/5G ecosystem while simultaneously positioning the country to become a digital hub for ASEAN.
TM Global continues to deploy its 4G/5G fibre backhaul rollout and drive greater demand for High Speed Broadband Access (HSBA) ports, reinforcing its commitment to support the Government’s aspirations for digital inclusivity in the country.
Beyond borders, TM Global has reinforced its position by enriching the platform play services via strategic collaborations with partners on A2P SMS Gateway in Philippines and Content Delivery Network (CDN) Last Mile Delivery in Thailand.
Additionally, TM Global continued to cater to mega bandwidth requirements with dynamic and customised solutions for hyper-scalers as well as global service providers, cementing its significance on the international stage.
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TM recognised as employer of choice at Graduates’ Choice Awards 2020 and World HRD Congress 2020
The Company was voted as among the top by university students across Malaysia. Telekom Malaysia Berhad (TM) was recently chosen as one of Malaysia's Most Attractive Graduate Employers to Work for in 2021 in conjunction with the 3rd Graduates' Choice Awards 2020, organised by Talentbank. The Company was ranked first in the Government-Linked Companies (GLC) category and top three (3) in the Telecommunications Category. Recognised by over 750 organisations nationwide, the Graduates' Choice Award is an esteemed award which gives recognition to outstanding organisations that demonstrate exceptional employer branding as voted by over 24,000 university students across Malaysia. In addition, TM was also recently awarded three (3) awards at the 11th Asia's Best Employer Brand Awards in the following categories: Best Employer Brand Excellence in Training Innovation in Recruitment Hosted by the Employer Branding Institute, World HRD Congress and Star of the Industry Group, Asia's Best Employer Brands Awards recognises efforts of organisations in the Asian region that have demonstrated excellent employer branding through effective talent strategies, talent development and talent innovation. The event was recently held virtually in conjunction with the 29th World HRD Congress 2020, one of the largest Human Resource global conferences, where leaders and professionals in Human Resource field from over 133 countries gather to discuss about Human Resource best practices. Meanwhile, earlier in February this year, in conjunction with the 28th World HRD Congress, TM received two (2) more awards namely Best Workplace Practices at the Global HR Excellence Awards and Employer of Choice at the HR Tech Award & Conferences held in Mumbai. Commenting on the awards, Farid Basir, Chief Human Capital Officer, TM said, "As the enabler of Digital Malaysia, these awards are a solid testament of the Company's commitment and efforts in nurturing digitally-skilled Warga TM across all functions. We are also continuously strengthening our employees' capabilities and competencies towards building a future-proof workforce, not only for the Company but also for the country." "The driving force behind our success thus far is our people, Warga TM, who make up the great team within TM. All these acknowledgements are dedicated to their hard work and determination in giving the best to our customers, the communities and to the nation. As an employer of choice, we have put in place various initiatives to develop and equip Warga TM with the necessary skills and knowledge for the future through trainings and upskilling programmes," he added. Besides that, specifically for youths and graduates seeking for job opportunities, TM has also organised various initiatives and programmes which include the Professional Training and Education for Growing Entrepreneurs (PROTÉGÉ) Programme in collaboration with the Government, launching of TM Executive Leadership Industry Trainee (ELIT) programme for Yayasan TM scholars, career webinars and participation in virtual career fairs. This aligns with the Company's aspiration to be positioned as an Employer of Choice for future talents.
TM GLOBAL BAGS A DOUBLE WIN AT THE ASIAN TELECOM AWARDS 2024
KUALA LUMPUR, 5 March 2024 – TM Global, the domestic and international wholesale business arm of TM, clinched top honours in two prestigious 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 marks the second consecutive year TM Global has received these accolades, solidifying its position as a leader in shaping the telecommunications landscape within Malaysia and across Asia. Khairul Liza Ibrahim, Executive Vice President of TM Global, said, "The awards underscore TM Global’s efforts as a catalyst of digital adoption across industries and the nation’s 5G ecosystem. Internationally, we serve as the gateway for businesses seeking to expand into ASEAN and vice versa. TM Global plays a pivotal role in advancing AI implementation and platform-play services and remains committed to driving innovation and bringing connectivity and digitalisation to all corners of the country." She further emphasised TM Global's transition from a traditional telco wholesaler to a digital enabler, "Our strategic shift up the value chain has enabled us to deliver a versatile edge ecosystem, empowering the next wave of technologies and applications. This recognition is a reaffirmation of our work in pioneering digital solutions to transcend borders and driving connectivity across the region." TM Global’s initiatives continue to help narrow the digital divide and nurture digital opportunities through the expansion of high-capacity connectivity infrastructure nationwide and the deployment of two additional International Internet Gateways in East Malaysia. Internationally, TM Global continued to bolster its connectivity strength, facilitate content distribution through TM Edge, and expand its platform services to connect service providers worldwide with the vibrant ASEAN market. The Asian Telecom Awards, hosted by the Asian Telecom magazine, a publication of the global Charlton Media Group, honours businesses and initiatives that are not only driving progress in the telecom industry, but have also ignited transformative shifts that have reshaped the digital landscape. These recognitions are a testament to TM Global’s ability to support regional and international service providers through comprehensive digital infrastructure solutions, providing a seamless gateway for their expansion into the region.
Consolidation of TM’s business in Malaysia to strengthen fixed-mobile convergence leadership and improve operational efficiency
Telekom Malaysia Berhad ("TM" or "the Group") today announced an internal reorganisation which involves the transfer of its business in Malaysia to a single operating entity named TM Technology Services Sdn Bhd ("TM Tech"). The internal reorganisation is anticipated to complete by 31 December 2023. The reorganisation – which includes Unifi, TM One and TM Wholesale, among others – marks the next phase of the Group's transformation to be the enabler of a digital Malaysia, and to further improve its operational efficiencies, streamline processes and simplify customer touchpoints to provide a more seamless customer experience. Incorporating its diverse businesses under TM Tech will also reinforce TM's Fixed-Mobile Convergence leadership, offering integrated fixed broadband, mobile services, data services, digital content and innovative solutions to communities, businesses and the Government. Group CEO, Imri Mokhtar said, "As digital lifestyles, increasing competition and stakeholder expectations reshape the industry, consolidating these businesses into one operating entity will allow us to serve our diverse customer segments better and deliver their needs more quickly. "Consolidating our suite of connectivity and digital offerings will also enable us to easily tap into the right combination of solutions to meet the unique needs of individual lifestyles and businesses." "Furthermore, this reorganisation aligns us to industry best practices and will improve TM's competitive edge among Malaysian and international Telcos and digital players, as we continue to pursue our aspiration of becoming a leading human-centred TechCo," he added. Under TM Tech, consumers will continue to enjoy the fastest and widest all-in-one connectivity and digital content. Enterprises and the public sector will also benefit from TM's digital and smart solutions, including cloud and data centres, cybersecurity and smart industry offerings. The operating entity will also continue to champion TM's nation-building efforts in expanding and modernising the country's fibre network, data centres and submarine cable systems. TM Tech will be led by TM's existing senior management team and will bring together its diverse talents under a single company, encouraging greater agility and cross-functional collaboration to improve service quality. Imri explained, "Our Warga TM will remain the execution engine for TM and the country's digital transformation. While our workforce will be realigned to this single operating entity, employee functions, entitlements and benefits will remain unchanged." Similarly, all of TM's partnerships, vendor and service agreements will remain in effect. Telekom Malaysia Berhad will now serve as an investment holding company for this operating entity, with all other subsidiaries within the Group to remain status quo. "Beyond TM's own growth, this reorganisation strengthens our role in advancing the country's digital transformation and to serve our customers in a more cohesive manner. While it marks a new milestone in our continuous transformation, we remain anchored to our purpose of enabling digital inclusion, opportunities and progress for all," Imri concluded.
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