08 Mar 2018
TM and Huawei seal strategic partnership to further enhance malaysia’s broadband reach and digital economy
As pioneers in the rollout of high speed broadband in the country, Telekom Malaysia Berhad (TM) and Huawei Technologies (M) Sdn Bhd (Huawei) are once again collaborating for the betterment of broadband and digital economy for the nation. The companies recently signed a Memorandum of Understanding (MoU) for both parties to work hand-in-hand in multiple collaboration activities, leveraging on each other’s core expertise and capabilities to accelerate fibre broadband network reach, in line with the Government’s move to drive Malaysia’s digital economy.
The collaboration will leverage on the combined strengths and capabilities of both companies to further accelerate national broadband reach and leap-frog the adoption of a connected digital lifestyle and the Internet of Things (IOTs) amongst Malaysians. Via the strategic partnership, both TM and Huawei will play a more proactive developmental role in providing ready infrastructure and ecosystem to support the nation’s growth.
The MoU was signed by Datuk Bazlan Osman, Executive Director / Deputy Group Chief Executive Officer, TM and Foo Fang Yong, Vice President of Huawei Technologies (M) Sdn Bhd. The signing ceremony was witnessed by Dato’ Sri Mohammed Shazalli Ramly, Managing Director / Group Chief Executive Officer, TM and Baker Zhou, Chief Executive Officer of Huawei Technologies (M) Sdn Bhd.
Commenting on the partnership, Dato’ Sri Mohammed Shazalli Ramly said, “We are indeed excited to be working hand in hand with a leading global name such as Huawei to accelerate the offering of digital services and solutions to the nation thus further support the Government’s aspirations of digital economy. As the trusted partner in key nation-building initiatives, TM ensures the safety and security of the nation's strategic and critical infrastructure, and in accelerating the broadband reach for all Malaysians. We believe that strategic collaborations such as this MoU is yet another testament of our role as the country’s key enabler for the national communications infrastructure.”
Meanwhile, Baker Zhou said: “Telekom Malaysia and Huawei have been working hand-in-hand for 15 years. In the past 15 years, we have worked together to connect more people than ever before. We are now at the crossroads of digital transformation. With today's MoU, we can share more, innovate better, and work more closely than ever before. Huawei will fully support TM’s vision of “Making Life and Business Easier”, and will work together with TM to building a better connected and intelligent Malaysia.”
The inking of the MoU marks the parties’ commitment to collaborate to deliver digital solutions for businesses and public sector, explore innovative solutions for network optimisation and implement initiatives that will capture TM customers’ share of moments.
The MoU also envisages other areas across TM Group of Companies including network and technology planning, exploration of innovative business model for unifi, transformation of Information and Communications Technology (ICT) to enhance overall efficiency of TM’s IT and Business support platform, smart device cooperation, establishment of Multimedia University (MMU) Smart Campus model and knowledge sharing on innovative technology. According to the MoU, Huawei will share its extensive global best practices to help TM capitalise emerging opportunities quickly through big data aided network design and deployment, intelligent Smart Capex solution to respond fast to TM customer needs, and simplify business engagement between both organisations via inter-connecting IT processes.
Through this strategic partnership, TM aspires to pursue the innovation and commercialisation of technology which includes Internet of Things (IoTs), cloud technology and artificial intelligence towards delivering digital experience to more Malaysians nationwide. TM will also explore alternative wireless technology deployment to further expand high speed broadband reach across Malaysia; bridging the digital divide and meeting the Government’s objective of a truly connected society.
The MoU is subject to a definitive agreement to be signed between the parties in specific areas. Further announcements will be made in due course, as and when appropriate.
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TM Melaka contributes pendarfluor lamps to those in need in Melaka
In line with its vision of “Making Life and Business Easier, For A Better Malaysia”, Telekom Malaysia Berhad (TM) through TM Melaka today lit up residences of those in need particularly in Durian Tunggal area with its contribution of pendarfluor lamps. A total of 1,000 pendarfluor lamps were handed over to deserving families in Kampung Gangsa, Durian Tunggal by YB Mohd Sofi Wahab, Exco of Public Works, Transport & Public Utilities, who is also the Durian Tunggal Assemblyman. Also present at the handover ceremony was Meor Shahril Anuar Ahmad Rathuan, State General Manager, TM Melaka. The pendarfluor lamps were gathered from an upgrading exercise of the lighting system at Menara TM Melaka building which saw the replacement of pendarfluor lamps to LED lights towards a more efficient energy consumption. From the upgrading exercise, TM Melaka managed to gather a total of 3,000 pendarfluor lamps to be contributed to the beneficiary groups. This is in line with the Group’s effort in efficient waste management and recycling of usable office equipment. Meor Shahril Anuar who mooted the idea said, "TM Melaka embarked on the upgrading exercise in 2017. With the initiative, TM Melaka has recorded substantial savings in our electrical expenditure while increasing the awareness on green practices amongst the staff. Besides this upgrading exercise, at TM Melaka, we continue to support one of the three-pronged approach of the Company’s Corporate Responsibility (CR) initiatives namely the environment with various other green initiatives. This include recycling of used papers, encouraging the employees to bring their own food containers when buying food at the cafeteria as well as dissemination of periodical information on green practices to Warga Keluarga TM Melaka.” “At TM, we seek to minimise our use of materials as well as the generation of waste in order to lessen the pressure on the world’s natural resources. We employ the 3R principles of reduce, reuse and recycle throughout the Group, instilling the practice in our employees as well as those of our contractors. The distribution of the used pendafluor lamps to the communities today is an example of our initiatives towards this end. As a result of our ongoing 3R efforts, in 2017, we reduced more than 11% in solid and scheduled waste generation in TM’s selected buildings,” Meor elaborated. In addition to the Durian Tunggal area, TM Melaka will also contribute the pendarfluor lamps to those in needs in the areas of Ayer Keroh and Paya Rumput. Besides residences, the lamps will also be contributed to mosques, schools, hostels and multipurpose halls.
TM inculcates creativity and interest in science among students
Science made easier with TM Nano Maker Kit Learning process: Briefing session on the usage of Nano Maker Kit where students can connect the Kit to their smart devices via Bluetooth to collect experiment results data. Thrilled: Participating students conducting an experiment on force, acceleration and momentum of a car crash. In action: An outdoor experiment on water rocket launching takes the interest of the students as they measure the rocket acceleration using Nano Maker Kit. Telekom Malaysia Berhad (TM) under its Corporate Responsibility (CR) initiatives, recently collaborated with its partner, Creative Minds - a company specialised in Science, Technology, Engineering and Mathematics (STEM) subjects – to conduct a programme called TM Nano Maker Kit, involving several schools around Kuala Lumpur and Selangor. This innovation-oriented programme is an initiative by TM to inculcate interests in science and technology among the students. The programme also marked its continued commitment in promoting education exc ellence and empowering the learning of STEM in the classroom. Commenting on the programme, Izad Ismail, Head of Corporate Responsibility & External Stakeholder Management, Group Brand and Communication, TM said, “This programme requires students to innovate and create activities related to science and technology. Students in all the 10 participating schools around Kuala Lumpur and Selangor were indeed very creative. They have the potential and capabilities to innovate but they need proper guidance to express the innovation. We hope that the training and learning process shared with them during this programme will encourage them to be even more creative and excel in Science and Technology subjects.” TM Nano Maker Kit programme provides a platform for the students to collect and analyse experimental data conducted in Physic and Mathematics. TM Nano Maker Kit also aimed to boost the students' abilities through hands-on activities which involve the usage of a technology known as ‘Data Logging’ to collect real-time data for the students to analyse. There are many parameters and types of data that can be tested using the TM Nano Maker Kit, including temperature, altitude, speed, weather, acceleration, pressure, light intensity and magnetic fields. The TM Nano Maker Kit saw participation of more than 300 students from 10 schools around Kuala Lumpur and Selangor. The schools involved, which served as the pilot group were SMK Dato’ Onn, SM Sains Banting, SMK Keramat Wangsa, SMK Batu Laut, SMK Bandar Tasik Selatan, SMK Bandar Seri Putra, SMK Bukit Kucing Tengah, SMK Saujana Impian, SMK Dengkil and MRSM Sungai Besar.
TM reports operational improvement for 3Q2018 despite challenging environment
Key Highlights of 3Q2018: Group Revenue of RM2.95 billion Group Reported Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) at RM941.4 million Group Reported Loss After Tax and Non-controlling Interests (LATAMI) of RM175.6 million from impairment of network assets Key Highlights of YTD 2018: Group Revenue of RM8.73 billion Group EBITDA at RM2.55 billion Group Reported Profit After Tax and Non-controlling Interests (PATAMI) at RM83.5 million Announces Revised Dividend Policy Telekom Malaysia Berhad (TM) today announced its financial results for the quarter ended 30 September 2018. The Group saw steady operational performance, amidst heightened challenges in its operating environment, namely industry and market challenges impacting its revenue. The Group held revenue steady, at RM2.95 billion in 3Q2018, 0.3% higher from RM2.94 billion in the previous quarter, on the back of higher data as well as other telecommunication related services revenue. Group Reported Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for 3Q2018 grew 11.3% to RM941.4 million as compared to RM845.9 million in 2Q2018 mainly due to lower operating costs. Group Normalised EBITDA, which excludes non-operational items, increased 13.1%, at RM930.9 million. However, due to impairment loss on wireless and fixed network assets, the Group recorded Loss Before Interest and Tax (LBIT) at RM631.8 million for 3Q2018. Without the reported impairment and other non-operational items, the Group’s Normalised Earnings Before Interest and Tax (EBIT) is at RM315.6 million for 3Q2018, a 39.4% increase against Normalised EBIT of RM226.4 million in 2Q2018. Consequently, the Group reported Loss After Tax and Non-controlling Interests (LATAMI) of RM175.6 million compared with RM102.0 million Profit After Tax and Non-controlling Interests (PATAMI) in the prior quarter. TM’s core net profit, or Normalised PATAMI excluding non-operational items, stood at RM266.4 million, a 71.0% improvement sequentially. The total capital expenditure (CAPEX) investment for the first nine months of 2018 at RM1.32 billion, or 15.1% of revenue. This is within TM’s full year capex guidance of 19-20% of revenue. By asset type, access comprised 62% of total spending, followed by core network at 15% and the remaining 23% was for support systems. Imri Mokhtar, Acting Group Chief Executive Officer, TM said: “We continue to face various headwinds from competitive market dynamics. Nonetheless, we held revenue steady over the quarter, and saw our cost reduction initiatives bearing fruit, by recording improved operational performance for QoQ and YoY. However, in light of the continued pressure from industry and market challenges and its impact on our revenue thus far, we have taken a prudent view, by undertaking the impairment of our network assets – this resulted in close to a RM1.0 billion impairment loss this quarter.” “The operational improvement in 3Q2018 is testament to the Group’s commitment to the four (4) pillars of our Performance Improvement Programme (PIP 2018) - Revenue Uplift / Preservation, Sustained Profitability, Improved Cash Flow and Increased Productivity that will navigate us through these headwinds. We are rationalising our business, reducing operating costs and focusing our resources on the opportunities that will have the most impact,” Imri elaborated. “We currently have 2.29 million broadband customers and our unifi customer base continues to grow at 1.26 million as at end of 3Q2018 as compared to 1.06 million as at the end of the corresponding quarter last year. In terms of convergence, we saw more customers moving up the value chain with having triple-play services and above, evidenced by our convergence penetration now at 48% of TM’s household penetration compared with 39% this time last year,” he added. “We will continue to strengthen our products and services portfolio and we are stepping up how we aggressively compete in the market, with greater sales and Go-To-Market activities on the ground. We are also working hard to reach more customers with various fit-for-purpose technologies to ensure that everyone can have the benefit of higher broadband speeds and enhanced experience. On top of that, we also have continuous engagements with the Ministry and the regulator to work toward mutually beneficial outcomes - for an improved broadband experience and help build a more balanced and inclusive digital nation, whilst at the same time balancing the business sustainability of the Group and the interests of our other stakeholders.” TM also announced a revised dividend policy which states that the Company intends to distribute yearly dividends of 40 to 60% from its PATAMI. Dividends will be paid depending on overall business and earnings performance, capital commitments, financial conditions, distributable reserves and other relevant factors. The dividend policy will take effect from the next dividend declaration. “This is a matter of great importance to us. In light of the current operating landscape and after careful consideration of the potential impact on our earnings alongside our efforts to transform the Company to adapt thereto, the Board has determined the review of our dividend policy to support TM’s long-term strategic objectives.” As Malaysia’s Convergence Champion, TM remains committed to fulfilling Malaysians’ digital and communication needs of all customer segments i.e., consumer, SME, corporate enterprises, public sectors, access seekers etc via our business clusters, unifi (consumer & SME), TM ONE (Enterprise and Public sectors) and TM Global (Global and Wholesale). Prospects for the Current Financial Year Ending 31 December 2018 The recent industry challenges and market environment have had major impact to the overall revenue estimates and earnings of TM Group in the financial year. TM anticipates that the challenging environment will persist for both its retail and wholesale segments. In the midst of these challenges, TM will continue to focus towards strengthening performance of its core business and operations.
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