25 Nov 2020

TM reports strong 3Q2020 performance amidst challenging environment

TM reports strong 3Q2020 performance amidst challenging environment Article Header
TM

Encouraging QoQ revenue growth across all product lines

​​​​​3Q2020 QoQ Key Financial and Operational Highlights (All comparisons refer to the second quarter of 2020 (Quarter-on-Quarter (QoQ) comparison), except as noted):​

  • Group Revenue grew 3.8% to RM2.69 billion from RM2.59 billion recorded in 2Q2020.
     
  • Group Reported Earnings Before Interest and Tax (EBIT) increased by 7.0% QoQ to RM456.2 million, from RM426.3 million in 2Q2020. 
     
  • Group Reported Profit After Tax and Non-controlling Interests (PATAMI) rose 19.9% QoQ to RM329.5 million compared to RM274.7 million.
     
  • The total capital expenditure (capex) for 3Q2020 stood at 14.9% of revenue or RM400.0 million.
     
  • unifi: Continues convergence leadership with growth in broadband and mobile; highest convergence penetration of TM households at 58%.
     
  • TM ONE: Strengthened position as the digital enabler for enterprise and public sector customers with connectivity and end-to-end cloud offerings.
     
  • TM Wholesale: Continues to connect industry players, carriers, over-the-top (OTT) providers and content players in Malaysia and globally.
     
  • Addressing the digital divide: Remain committed to increasing connectivity reach via Jalinan Digital Negara (JENDELA) and accelerating the digital economy with recently announced Malaysia Digital Economy Corporation (MDEC) collaboration.

Strong Business Performance for 3Q2020

Despite these unprecedented times, TM Group Revenue continues to increase QoQ recording a resilient 3.8% growth to RM2.69 billion from RM2.59 billion recorded in 2Q2020 on the back of higher revenue from voice, internet and data services.

Group EBIT for 3Q2020 increased by 7.0% QoQ to RM456.2 million, from RM426.3 million in 2Q2020, on the back of lower operating cost, from the Group's continued momentum from its cost optimisation programmes. This subsequently led to a 19.9% increase in Group PATAMI from RM274.7 million in the preceding quarter to RM329.5 million.

In 3Q2020, the company invested 14.9% of revenue in capex amounting to RM400.0 million - in line with guidance - as it continued to optimise its network and sweat its assets. Of the amount invested, 50% was for network access, 17% for core network, and the balance 33% for support system.

Imri Mokhtar, Group Chief Executive Officer, TM, commenting on the results:

"We are pleased to report another quarter of growth across all key financial metrics – revenue and profits – despite the challenging environment in Q3. Our efforts in cost optimisation continue to yield results with a healthy EBIT and a strong PATAMI. As we enter the ninth month of the Covid-19 pandemic, our priority continues to be the safety and health of our 'Warga TM' while continuously delivering connectivity and solutions excellence to our broad customer base."

"We are seeing unifi gaining momentum, posting a 6.3% growth to 1.65 million subscribers, with our total broadband customer base now at 2.26 million. We achieved the highest convergence penetration (of three services or more) in TM households since 2018, of 58%, as more Malaysians embrace digital living-working in this new norm. On the wholesale front, we continue to collaborate with industry players in Malaysia and globally. At TM ONE, we further cemented our leadership position as the digital enabler for enterprise and public sector customers with enterprise-grade connectivity and end-to-end cloud offerings. We look forward to more collaborations with strategic partners and customers towards establishing a solid foundation for a more Digital Malaysia," Imri concluded.

Operational Review: Maintaining Business Momentum

TM delivered another quarter of robust performance, driven by its agility to mitigate the impact of the pandemic on Group businesses and operations; leveraging on new avenues for growth in the 'new normal' whilst adapting to challenges.

  • unifi: Continues convergence leadership with growth in broadband and mobile
    • Achieved the highest convergence penetration at 58% of TM households.
    • unifi customer base grew 6.3% to 1.65 million; total broadband customer base grew 2% to 2.26 million during the quarter.
    • Helped empower Small and Media Enterprises (SMEs) with relevant tools and knowledge to grow their businesses and embrace digitalisation with the launch of cari@unifi and eBiz Pack, unifi Business Club (uBC) collaboration with Lalamove and live webinars such as Reboot and Sembang Bisnes.
    • Partnered with Funding Society Malaysia to provide business financing solutions for Micro SMEs (MSMEs) utilising Yellow Pages' digital platform.
    • unifi Mobile extended access to the daily free 1GB Productivity Internet offer to 24 hours, until 31 December 2020, to support Malaysian's connectivity needs in Conditional Movement Control Order (CMCO).
       
  • TM ONE: Strengthened our position as digital enabler for enterprise and public sector customers with connectivity and end-to-end cloud offerings
    • Scaled up the full capabilities of Cloud α (Cloud Alpha) suite of services with full data residency, locality and sovereignty.
    • Appointed as the technology partner of the Department of Statistics Malaysia (DOSM) to develop and maintain the Population and Housing Census of Malaysia 2020 (e-Census) platform.
    • Continue to support state governments and local city councils to establish future-ready smart cities and smart homes via its TM ONE Smart City Solution enabled by the Internet of Things (IoT) and various smart solutions.​
       
  • TM Wholesale: Continues to connect industry players, carriers, over-the-top (OTT) providers and content players in Malaysia and globally
    • Domestic
      • Secured a new contract with a domestic mobile player for cross ocean connectivity, backhaul connectivity solutions and broadband access capacity upgrade.
      • New backhaul connectivity deal with a domestic mobile player for new backhaul services.
    • International
      • Expansion of content delivery services with an Asian-based OTT player.
      • Secured a deal with an Asian-based OTT player for connectivity solution within Asia Pacific, and two (2) new long term data connectivity deals with global carriers.
      • Additional voice business deals with global service providers worldwide.
  • TM Network remained stable throughout CMCO as a result of continuous network optimisation. This is despite traffic utilisation surging between 30% to 50% depending on peak hours, from March 2020 to November 2020 due to more Malaysians working from home.
  • Supporting the nation's digital agenda and addressing the digital divide: Remain committed to increasing connectivity reach via JENDELA and accelerating the digital economy with the recently announced MDEC collaboration.

Prospects for the Current Financial Year Ending 31 December 2020

Following the Covid-19 pandemic, Bank Negara Malaysia has revised Malaysia's annual gross domestic product (GDP) forecast to contract between 3.5% to 5.5%[1], against 4.3% growth in 2019. Uncertainty from the most recent wave of the pandemic from October onwards is expected to bring about further revision to these numbers.

As the nation faces this adversity, relying even more on the internet and digital connectivity for work and studies, TM continues to serve as an essential service provider, ensuring stable network performance for the entire nation via both our retail and wholesale fronts. The Government's introduction of JENDELA in September 2020 as well as the RM7.4 billion allocations in the recent National Budget to deliver upgraded broadband services for year 2021 and 2022 will serve as a platform to accelerate Malaysia's digital connectivity through wider deployment of mobile, fibre and fixed wireless access. This will pave the way for 5G under the 12th Malaysia Plan (2021–2025).

TM is at the forefront in collaborating with other service providers, enabling and delivering JENDELA. We continue to seek opportunities to cater for future demands of connectivity, in line with our proven commitment to maintain business profitability whilst adapting to and exploring new norms and avenues from this dynamic circumstances that the nation faces today.

[1] Sourced from Bank Negara Malaysia, 14 August 2020

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23 Nov 2023
TM Delivers Strong Performance Amidst Challenging Market Conditions in 3Q 2023

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The strong performance of two of TM’s lines of business, Unifi and TM Global played a pivotal role in this growth. Unifi’s fixed broadband subscription increased 4.6% reaching 3.12 million, while TM Global’s revenue increased due to heightened demand for both domestic and international data services. The Group’s year-to-date (YTD) Capital Expenditure (CAPEX) investment stood at RM1.38 billion or 15.1% of the overall revenue. This strategic allocation of resources is directed towards the nationwide network infrastructure expansion and enhancement of its regional submarine cable system. Reflecting on the 3Q 2023 performance, Amar Huzaimi Md Deris, TM’s Group Chief Executive Officer said, “I am pleased to announce the significant strides we have made amidst intensified competition. Our commitment to advancing quad-play convergence services, coupled with the introduction of attractive and competitive packages, enabled us to retain and expand our customer base, solidifying our portfolio as the true convergence champion. “Our relentless pursuit of improving mobile coverage nationwide aligns with our dedication to inclusivity, bridging the digital divide, and fostering widespread digital adoption. By ensuring our services are accessible to all, we contribute to creating a more connected and inclusive society. “Simultaneously, our aggressive expansion of data and network infrastructure is strategically positioned to meet the growing demands of our domestic market and attract more international players. This is a crucial step towards positioning Malaysia as a digital hub for the region, contributing significantly to the creation of a globally connected digital economy. “TM supports the recently launched New Industrial Master Plan (NIMP) 2030 and we are well positioned to unlock technological opportunities whilst driving innovation for the nation and key economic sectors. As we continue our journey towards humanising technologies, our commitment extends beyond services to the development and refinement of smart innovative solutions. It is not just about technological advancement and improving business outcomes but also about enhancing lives, bringing positive impact to the environment and society. “In summary, these initiatives underscore our goals to foster digitalisation and emerging technologies. Our comprehensive approach reflects TM’s position as a trailblazer in the ever-evolving landscape, with a clear focus on driving positive change and shaping the future of digital connectivity”, added Amar.   LINES OF BUSINESS PERFORMANCE Unifi Drives Innovation and Maintains Growth Trajectory Unifi recorded 0.7% revenue growth reaching RM1.41 billion, propelled by effective convergence campaigns and robust customer retention activities. As leader of converged offerings, Unifi continues to elevate connectivity at home and on-the-go through the country’s best fibre network, superior 4G coverage and an expanding 5G nationwide footprint. Driven by vibrant content offerings, improved mobile coverage and competitive new packages, Unifi caters to diverse consumer lifestyles and digital experiences for Malaysians. Unifi received the Open Signal 5G Global Awards 2023, recognising it as one of the fastest 5G telcos in the world. 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The portal facilitates secure, fast, and accurate data sharing and processing with enhanced efficiency while fostering transparency and good governance.  In August, CyberSecurity Malaysia recognised TM One for its role in safeguarding the Critical National Information Infrastructure through its Security Operations Centre and Network Operations Centre. The award reinforces TM One's commitment to protecting data and devices across all network environments, contributing significantly to national security and opens the door to new cybersecurity solution opportunities. Moving forward, TM One maintains its focus on managed converged next-gen connectivity, smart services, cloud and cybersecurity while remaining steadfast in providing fit-for-purpose solutions to enable industry digital transformation and economic growth. TM One is well positioned to support the recently launched NIMP 2030, dedicated to enabling innovative solutions for the nation and key sectors, spurring new opportunities and driving continuous innovation.    TM Global Strengthens Malaysia position as the Preferred Digital Hub for ASEAN TM Global reported a 5.0% revenue increase to RM808.6 million from RM769.9 million, driven by encouraging demand for both domestic and international data services. TM Global actively contributed to Malaysia’s digital transformation through continuous deployment of 5G infrastructure, HSBB access and edge facilities nationwide. These facilities set the foundation for industry players to offer new innovative 5G solutions and industry specific use cases. Despite market challenges, TM Global mitigated the risk through strong collaborations with industry players in promoting wholesale broadband solutions to drive internet inclusivity for the nation. 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10 Feb 2021
Telecommunications operators continue to support home-based teaching and learning with free 30GB internet per month

Telcos also providing free WiFi connectivity for students at selected PPR communities and have extended operating hours of Pusat Internet Komuniti PETALING JAYA, 10 FEBRUARY 2021 – Telecommunications operators Celcom Axiata Berhad ("Celcom"), Digi Telecommunications Sdn Bhd ("Digi"), Maxis Berhad ("Maxis"), U Mobile Sdn Bhd ("U Mobile"), and Telekom Malaysia Berhad ("TM") through unifi Mobile, are continuously supporting the rakyat's learning needs with free 30GB Productivity Internet per month (free 1GB internet daily), for learning and productivity tools as well as for news website browsing until 30 April 2021. Since April 2020, all active Postpaid and Prepaid customers of the respective operators have been able to enjoy 30GB Productivity Internet per month, except for social media, gaming, video and music streaming, over and above customers' monthly data allocation from their existing plans. Customers are advised to refer to their respective operators for more information on how to access the daily free Internet offers and the list of services included. Furthermore, telco operators will continue to support the rakyat at selected People's Housing Projects (PPR) by providing free WiFi and extending operating hours of Pusat Internet Komuniti (PIK) during these challenging times.  A total of 130 PPR and 54 PIK nationwide will focus on supporting students from B40 families with free connectivity that aims to facilitate Home-based Teaching and Learning (PdPR) due to the Movement Control Order (MCO). In addition to the free 30GB internet per month, the operators have also provided a special prepaid data pass for SPM and STPM students, as well as students in higher learning institutions. The prepaid data pass offers 15GB data per month for as low as RM20 per month and the passes are available for eligible students from 6 January 2021 until end of April 2021.    The joint industry initiatives are part of its continuous relief efforts driven together with the Malaysian Communications and Multimedia Commission (MCMC), the Ministry of Communications and Multimedia as well as the Permai Aid Package as recently announced by the Prime Minister of Malaysia, YAB Tan Sri Muhyiddin Yassin. Telecommunication operators will also continue to offer free and unlimited access to a range of information-related apps and services to ensure Malaysians stay updated on the latest credible news on COVID-19. The list includes MySejahtera and MyTrace apps, and important health websites and hotlines such as the CPRC Hotline, Ministry of Health and World Health Organization websites, and more.

14 Mar 2024
TM REVOLUTIONISES DIGITAL HEALTHCARE SERVICES WITH NEXT GEN E-PHARMACY SOLUTION

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