24 Feb 2021
TM Delivers resilient FY2020 performance well positioned to accelerate MyDIGITAL aspirations
- Improved FY2020 business performance amidst challenging environment; cost optimisation initiatives continue to drive profitability growth
- Committed to enabling Digital Malaysia towards MyDIGITAL growth aspirations
- Embarks on new TM transformation anchored on Value Programs with higher execution tempo
Key Highlights FY2020 Financials:
❖ The Group posted a revenue of RM10.84 billion, 5.2% lower from RM11.43 billion in 2019.
❖ Group Reported Earnings Before Interest and Tax (EBIT) increased by 2.3% YoY to RM1.60 billion, from RM1.57 billion in FY2019.
❖ Strong Group Reported Profit After Tax and Non-Controlling Interests (PATAMI) growth of 60.6% YoY at RM1.02 billion compared to RM632.7 million.
❖ Total capital expenditure (capex) for FY2020 at 13.7% of revenue or RM1.49 billion.
FY2020 Business Operations: Good underlying momentum
❖ unifi: Continues convergence leadership with growth in broadband and mobile customers; highest convergence take-up of TM households at 60%.
❖ TM ONE: Taking transformation forward to enable the digital transformation journey of enterprise and public sector customers with comprehensive suite of connectivity, cloud, data centre and smart solutions.
❖ TM Wholesale: Strengthens domestic and international ecosystem with telcos, digital service providers and hyperscalers to position Malaysia as a digital hub in ASEAN.
❖ TM is committed to Environmental, Social and Corporate Governance (ESG) Sustainability, building on our strong track record.
Moving Forward:
❖ New TM transformation: Embarks on new trajectory anchored on key Value Programs with higher execution tempo
❖ 2021 Market Guidance: Revenue to be flat to low single digit growth, EBIT to be more than RM1.6 billion and CAPEX to be between 14% to 18% of revenue.
❖ TM is well positioned to play a significant role in MyDIGITAL - covering digital connectivity (fibre, 5G, international connectivity), digital infrastructure (cloud, data centre and cybersecurity) as well as digital skillsets and talents (via Multimedia University and TM Digital Academy). Appointed sole home-based Cloud Service Provider (CSP).
A Resilient Business Performance for FY2020
Telekom Malaysia Bhd (TM) today reported its Financial Results for the full year ended 31 December 2020. TM Group Revenue recorded RM10.84 billion as compared to RM11.43 billion in FY2019, lower by 5.2% in the face of market and pandemic challenges.
TM’s performance improvement programs continued to bear fruit, with EBIT and PATAMI growth recorded from the previous year. Group EBIT for FY2020 rose by 2.3% YoY to RM1.60 billion, from RM1.57 billion in FY2019, on the back of lower operating cost, from the Group’s ongoing momentum of its cost optimisation and productivity programmes. This subsequently led to a strong 60.6% YoY growth in Group PATAMI to RM1.02 billion from RM632.7 million last year.
In 2020, the Company invested 13.7% of revenue in capex amounting to RM1.49 billion as it continued to optimise and modernise its network as well as sweating its assets. Of the amount spent, 53% was for network access, 22% for core network, and the balance 25% for support systems. This has ensured that TM’s network was able to effectively manage the network traffic that has surged over the period of the Movement Control Order (MCO).
For shareholders, TM is committed to continually increase shareholder value and declared a Final Interim Dividend of 7.5 sen per share with a total payout amounting to RM283.0 million for the financial year of 2020.
TM is also committed to sustainable growth, with increased emphasis on ESG, building on its strong track record as one of the 75 Bursa companies on the FTSE4Good Bursa Malaysia Index, with the full rating of 4/4.
New TM Transformation – Setting A New Trajectory
Building on current momentum, TM has embarked on the next exciting phase of its journey with the ‘New TM’ Transformation Programme (2021-2023). Guided by the ‘New TM’ Compass of Purpose, Customers, Performance and People; TM will inculcate a new performance culture that is focused on outcome and impact. Over the next 12 months, TM looks to improve EBIT growth through three (3) areas of excellence: in connectivity, solutions and customer experience; with stronger revenue from our business units, better cost management and productivity from operations optimisation, and improved customer experience.
The ‘New TM’ transformation is anchored on 40+ Value Programs, driven by a dedicated Transformation Office; with a new cadence towards a higher execution tempo, which is already showing early traction. TM is also reshaping its workforce into a stronger execution engine, embracing a more agile work culture with future-ready skills.
For 2021, TM is sharing the following market guidance: Revenue growth to be flat or single digit growth, EBIT to be more than RM1.6 billion and CAPEX guidance to be between 14% to 18% of revenue.
These will set TM on a sustainable growth trajectory, to create shareholder value and continuously enable a more Digital Malaysia. TM reiterates its support for MyDIGITAL – Malaysia Digital Economy blueprint and other Government’s digital and stimulus plans, towards accelerating the socioeconomic recovery and growth at this most critical time. TM believes that such public and private collaboration will propel the country towards a full-fledged Digital Malaysia by 2030 – a more digital society, digital business and digital Government.
Imri Mokhtar, Managing Director & Group Chief Executive Officer commented:
"We are pleased to report a resilient overall business performance in 2020 as we navigated through the challenges of the pandemic and macroeconomic environment. These uncertainties have required us to change the way we work, becoming more efficient in execution and being more prudent in managing resources.
We are excited for the next phase of our journey with the ‘New TM’ Transformation Programme (2021-2023) - guided by our compass of Purpose, Customers, Performance and People. Our performance momentum has further strengthened our conviction in the transformation ahead. TM Group will be at the forefront in this new economy towards improving the quality of life of our customers and supporting nation-building programmes including MyDIGITAL and other stimulus plans. We remain confident to bring value for our customers and shareholders in 2021 and beyond.”
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TM on course to accelerate convergence and empower digital to expedite national broadband adoption; continues value creation
Key Highlights of Financial Year (FY) 2017 vs FY 2016: Performance FY 2017vs FY 2016 o FY 2017 Group Revenue at RM12.09 billion o Group Operating Profit (Earnings Before Interest and Tax (EBIT)) at RM1.09 billion; whilst Normalised EBIT was RM1.19 billion o Group Reported Profit Before Tax (PBT) rose 14.1% to RM1.05 billion o Healthy Group Reported Net Profit (PATAMI) growth of 19.8% at RM929.7 million; Normalised PATAMI growth of 1.8% at RM863.2 million o Delivers dividend commitment - declares 2nd interim dividend of 12.1 sen per share or RM454.7 million; total dividend payout stands at 21.5 sen per share or RM808.0 million o Sustained customer satisfaction with Customer Satisfaction Measure (TRI*M index) score of more than 73, above global telco average of 66 Operational Highlights o Consolidated unifi brand for converged lifestyle services o Achieved more than 1.1 million unifi (Home and SME) customers o Launched unifi Mobile #BEBAS and mobile@unifi app - unifi Mobile TM Household penetration at 9.8% Telekom Malaysia Berhad Group of Companies (TM Group) today announced its results for the financial year ended 31 December 2017. The Group’s 2017 performance was mainly driven by Internet and multimedia services. Group revenue stood at RM12.09 billion on the back of higher internet revenue contribution, which rose 8.3% against FY 2016, to RM3.97 billion; contributing 33% of total revenue. Speaking at the press conference after announcing the Company’s 2017 full-year financial results, Dato’ Sri Mohammed Shazalli Ramly, Group Chief Executive Officer, TM said: "2017 was a challenging yet transformational year for TM. We stayed focused on our Key Performance Indicators (KPI) and Key Happiness Index (KHI), driven by our Perfexe 10 aspirations. The holistic Perfexe 10 execution approach drove us to implement our high priority plans whilst accelerating convergence and empowering digitisation. Perfexe 10 simplifies and serves as a guide to all of our business operations while we closely track the progress of each plan and evaluate specific initiatives to ensure we execute in a timely manner. Although Perfexe 10 is a long term plan, we are pleased by the progress of each business thus far; where we have rebranded our business clusters, with unifi representing lifestyle offerings for homes, individuals and Small Medium Enterprises (SMEs); TM ONE offering end-to-end converged solutions to business verticals in the enterprise and public sector space; and TM GLOBAL positioned to accelerate the digital opportunities of domestic and international telecommunications.” Dato’ Sri Shazalli went on to comment, “Overall, TM was resilient in a challenging environment, delivering healthy revenue and profitability. We are pleased with the market’s response to all the initiatives that we implemented during the year. We saw strong customer traction in the home and mobile space. The recently launched unifi mobile #BEBAS, broke away from convention - where our customers are now liberated to use our mobility service relevant to their needs - and fully on digital, showed very encouraging performance.” “TM Group remains at the leading edge of enabling the country’s digital economy via our broadband deployment for the nation and in bridging the digital divide. In our unique role as protector of national interest, the Group’s achievements thus far have been numerous. Through our products and services, we have delivered countless benefits to not only our customers, but all Malaysians. We now have a converged nationwide coverage of unifi which includes broadband, mobility and wifi. As at end 2017, we recorded a total broadband customer base of more than 2.3 million customers. Our main broadband service offering, unifi for home and SMEs achieved more than 1.1 million customers, and unifi Mobile achieved 9.8% penetration of TM’s households. We have also been fully supportive of the Government’s objective towards improving the affordability, reach and quality of broadband services. In 2017, under the implementation of the Broadband Improvement Plan (BIP), we have successfully enhanced Malaysian’s digital experience by doubling the broadband speed at the same price to approximately 1.0 million Malaysian homes and SMEs. We also launched unifi edu pack for the youth, specifically students at institutions of higher learning and unifi e-biz pack for e-entrepreneurs. Earlier this year, we launched wifi@unifi app that enables all Malaysians to access the Internet via wifi. The app locates wifi hotspots and connects users to over 9,400 hotspots across Malaysia. To further expand our reach to customers, TM ONE collaborated with a renowned restaurant chain to provide high-speed broadband services and solutions including WiFi access points to more than 1,000 of their outlets nationwide. In addition, TM GLOBAL plays the role of positioning Malaysia and TM as the ideal gateway for the world to the ASEAN region; and submarine cable expansion is a key element in achieving this. Three (3) new submarine cable systems namely Malaysia-Cambodia-Thailand (MCT), Nusantara Gateway (NuGate) and Sistem Kabel Rakyat 1Malaysia (SKR1M) have been developed and were completed last year. TM GLOBAL has also set up a new international Point of Presence (PoP) in Marseilles, France, for service providers who need connectivity to Europe. To further enhance our customers’ enjoyment of our wide array of entertainment, and in support of the development of the Malaysian football scene, we are bringing the proud moments of the national football league to all Malaysians and football fans as the title sponsor for “unifi Liga Super Malaysia” and “unifi Piala Malaysia” as well as co-sponsor for Piala FA until 2025. Our customers can now enjoy exciting football content via unifi TV and across all screens, accessible via unifi PlayTV app,” he elaborated. Group Reported Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) stood at RM3.58 billion, lower by 5.6% against last year primarily due to higher operating costs mainly related to mobile services. After excluding non-operational items such as foreign exchange loss on trade settlements and placements, Normalised EBITDA stood at RM3.67 billion, lower by 3.9% compared to 2016. Group EBIT for FY 2017 was at RM1.09 billion, 5.3% lower against last year from the higher operating cost despite reduction in depreciation and amortisation charges. Stripping off the foreign exchange loss on international trade settlements and placements and loss on disposal of financial assets, Group Normalised EBIT stood at RM1.19 billion, 0.2% higher than the previous year. Group Reported Profit Before Tax (PBT) rose 14.1% to RM1.05 billion, against RM918.5 million last year. TM Group reported a healthy 19.8% growth in Group Reported Profit After Tax and Non-controlling Interest (PATAMI) against FY 2016 at RM929.7 million as compared to RM776.0 million recorded in FY 2016 primarily due to foreign exchange gain on the Group’s borrowings in FY 2017. Excluding this, Group Normalised PATAMI was 1.8% higher at RM863.2 million. The total capital expenditure (CAPEX) for FY 2017 as a percentage of revenue was 22.8%, amounting to RM2.76 billion, which was lower than guided in 3Q2017, due to internal re-prioritisation of projects. By asset type, access comprised 42% of total spending, followed by core network at 34% and the remaining 24% was for support systems. “At the same time, it is gratifying to see that our focus on customer experience continues to place us amongst the trusted brands in Malaysia. In 2017, sustained customer satisfaction resulted in our achieving Customer Satisfaction Measure (TRI*M index) score of more than 73, exceeding the global industry’s average of 66 for the seventh consecutive year,” added Dato’ Sri Shazalli. In line with its dividend policy, the Group is declaring a second interim single-tier cash dividend of 12.1 sen per share or RM454.7 million for the financial year ended 31 December 2017. Together with the 1st interim dividend of 9.4 sen per share amounting to RM353.2 million which was paid on 13 October 2017, the total dividend payout is 21.5 sen per share, or RM808.0 million. The second interim dividend will be paid on 13 April 2018. Accelerating Convergence To Accelerate Convergence, the Group has consolidated its service brands into a single identity. With this strategic repositioning, unifi is now the one and only brand in Malaysia that offers truly comprehensive suite of converged services – home, mobile, wifi and TV, across all segments - fixed, mobile and nomadic - anytime, anywhere on any device; reflecting what true convergence means to the Group. On the business front, the Group has also converged its service offerings for enterprise and public sector customers, presenting a comprehensive set of solutions to meet all their business needs. With the consolidation, TM ONE is now the one and only trusted digital partner and enabler for enterprises and the public sector to fully realise their digital opportunities. The new business cluster enables private enterprises and government agencies to enhance the way they work, with ‘Consider IT Done’ as its driving force and attitude. In 2017, TM ONE placed more emphasis on an approached termed as “verticalisation”, converging customised vertical or industry relevant solutions, to unleash their full digital potential. Top-priority verticals have been identified for immediate revenue generation. The Group foresees higher traction in its Data Centre business once its Klang Valley Core Data Centre (KVDC) is fully completed later in 2018. Together with the already running Tier III Iskandar Puteri Core Data Centre (IPDC), the inter-connected data centres form a Twin Core Data Centre solutions for high redundancy which are connected via high speed fibre optic connectivity, designed for higher fault tolerance and enhanced security. The Group also foresees potential for new growth opportunities in TM GLOBAL. TM GLOBAL’s focus moving forward is to continue accelerating its business growth by generating revenue from other than connectivity services. It also plays a vital role in expanding content localisation initiatives by bringing international content locally to minimise outbound bandwidth and improving customer experience. It enables easier access for businesses, at more competitive pricing. On the international front, we also connect the world via domestic, regional and global submarine cable development and investments with a total of twenty (20) submarine cables with fibre-route of more than 190,000 km around the globe to date. Empowering Digital Empowering Digital entails digitisation (driving productivity via digital) and digitalisation (monetisation of digital businesses), which combined, will enable TM Group to reap the full benefits of improved productivity, enhanced customer experience and monetisation of opportunities presented. In September 2017, TM Group launched unifi.com.my web portal, a single all-in-one customer service absolute portal for interaction on unifi related services, enabling customers to order or upgrade their services, check their usage, pay bills, troubleshoot online as well as chat in real-time with our agents for assistance. Under its digital empowerment pillar, the Group also launched hub@TM, a one-stop centre for all apps developed for Warga Keluarga TM. A number of new digital applications that serve both its customers as well as employees were developed such as FLOW - an employee engagement application that facilitates better collaboration and responsiveness; GROW - an enhanced tool for employee performance evaluation and assessment; HERO – a complaint support escalation app for Warga Keluarga TM; HELO - a digital onboarding app to kick start new hires’ employment journey; TMmedic - TM Group’s healthcare benefits app; EYES – a tool for employees to alert network team on occurrences that may potentially result in service disruption. For customers, several apps have been developed to enhance their overall unifi experience such as wifi@unifi - a unifi Wifi locator app; TM Wifi Optimiser – a tool to boost customers’ WiFi performance; mobile@unifi - a gateway to anything unifi Mobile service – from add-ons #pilihapasaja, to reloading #bayarbilabila, purchasing data, calls and SMS #kredittakmati as well as customer support; and unifi PlayTV - an app version of unifi TV for viewers to enjoy world class entertainment and award winning shows, anytime and anywhere. The introduction of these apps is in tandem with TM’s aspiration of ‘Going Digital’ as the Company moves beyond connectivity into new value added digital and smart services. It is part of the Group’s holistic approach covering customer experience, process optimisation and new business opportunities which entails building a digitally aware and smarter workforce. This is in line with its goal to accelerate the achievement of its strategic goals of Accelerating Convergence and Empowering Digital via “Perfexe 10”. 2018 and mid-term Headline Key Performance Index (KPIs) Guidance TM also announces its Headline KPIs for 2018 and the mid-term target respectively. They are revenue growth of 3.5% to 4.0% in 2018, EBIT to maintain 2017 EBIT RM and Customer Satisfaction Measure of 74. For the mid-term, the Headline KPI is revenue growth of 3.5% to 4.0%, EBIT growth of 3.5% to 4.0% and Customer Satisfaction Measure of 75. Comparison: Quarter-on-Quarter (4Q2017 vs 3Q2017 Results) The 4Q2017 saw Group Revenue at RM3.20 billion, growth of 8.8% QoQ. Group EBITDA was higher by 1.7% at RM893.5 million QoQ on the back of the higher operating revenue. Group EBIT rose 3.4% at RM270.3 million QoQ whilst Group Reported PBT grew 30.6% at RM307.6 million. Group PATAMI increase 30.8% to RM277.0 million compared to RM211.8 million in the preceding quarter. Prospects for the Next Financial Year Ending 31 December 2018 The Group foresees sustainable performance in 2018, despite competition and challenges. This is driven by the new execution model which prioritises its plans towards delivering relevant converged digital lifestyle services and end-to-end business solutions to all its customers.
TM performance for 1H2019
Telekom Malaysia Berhad (TM) today announced its financial results for the first half ended 30 June 2019. Financial and Operational Highlights 1H 2019 (Year-to-Date (YTD) June 2019 vs Year-to-Date (YTD) June 2018): Group Revenue of RM5.55 billion, 4.1% lower against 1H2018 – in line with market guidance- mainly due to lower contribution from all lines of products except data services. Group Reported Earnings Before Interest and Tax (EBIT) for 1H2019 grew 75.0% YTD at RM777.9 million, from RM444.5 million in 1H 2018, on the back of lower operating cost, from the Group's various cost optimisation initiatives. Group Reported Profit After Tax and Non-controlling Interests (PATAMI) rose 63.1% YTD to RM422.5 million compared to RM259.1 million. The total capital expenditure (CAPEX) was in line with guidance at 8.1% of revenue or RM450.0 million. unifi updates: Increased YTD convergence penetration to 56% of TM Households Higher net addition for unifi with more than 2.16 million broadband customer base, comprising 1.34 million unifi and 823k Streamyx customers. Completed Broadband upgrade programme in April 2019. unifi customer base continues to grow as more customers are moving up the value chain by having triple-play services (3P). #khabarbaik customer experience related initiatives in 1H2019: Streamlined all Streamyx packages to a new unifi Lite plan at a discounted price at RM69/month for existing Streamyx customers. Introduced unifi Air to elevate the internet experience of existing Streamyx customers residing in TM's LTE coverage areas Launched an All-in-one app; myunifi for a hassle-free experience in managing unifi account. Implemented 24-hour unifi installation initiative to enable new customers to set an appointment within 24 hours after registration. TM ONE updates: Enabling digital transformation of industry verticals and Public Sector to be IR4.0 ready Completed its Twin Core Data Centre with the launch of Klang Valley IP Core Data Centre (KVDC) in Cyberjaya. Started to enable the delivery of 21st century education to schools nationwide Launched Ten (10) Transformative Smart Solutions (10T) to enable a more Digital Society, Digital Business and Digital Government. Established cross-industry strategic digital collaborations to facilitate partners' digital transformation journey: Collaborated with the Government to accelerate awareness on Industry4WRD Readiness Assessment (RA) programme and the national initiative for Industry Revolution 4.0 (IR4.0). Partnered with Petronas Dagangan Berhad (PDB) to upgrade over 1,000 Petronas stations nationwide with the next generation network infrastructure. Appointed by E&P O&M Services Sdn Bhd (EPOMS), a wholly owned subsidiary of PETRONAS Carigali Sdn Bhd, as the official technology collaborator in providing end-to-end digital solutions for a more connected workforce and data management, and to digitalise its Operations and Maintenance (O&M) solutions. Strategic Partnership with Ministry of Rural Development for Desa Pintar Programme to enhance internet coverage in rural areas towards empowering rural entrepreneurs to market their products and services via digital platforms. TM GLOBAL updates: TM as the National Telecommunication Infrastructure Provider continues to serve as the industry backbone, connecting Malaysia to the world via its solid infrastructure. Strengthening its position as the trusted accelerator of business growth, TM GLOBAL serves more than 100 licensed operators in Malaysia including all major telcos leveraging on its extensive backhaul coverage and existing collaborations. TM GLOBAL connects Malaysia to the world via more than 20 direct connectivity of its submarine cables systems - spanning over 190,000 km - to more than 60 countries. Under its regional hub's Content Localisation initiative, TM GLOBAL has brought 18 global players to localise their content in Malaysia. Dato' Noor Kamarul Anuar Nuruddin, Group Chief Executive Officer, TM, commenting on the results: "We continued to face challenges in 1H 2019. However, our cost optimisation efforts continue to show results and we will keep the momentum on profitability going. We shall navigate the challenges on revenue through stronger focus on customers. We will also continue to serve as a strategic partner of the National Fiberisation Connectivity Plan (NFCP) backed by our solid network infrastructure." Our CAPEX is well within guidance as we continue to optimise investment for growth and quality improvement to better serve our customers. We will place stronger focus on our customers and this is evidenced in a number of initiatives that we have implemented thus far. We recently announced our latest #khabarbaik on the introduction of unifi Air, the new unifi Lite entry package and Streamyx repricing to reward existing customers and attract new ones onboard. We also pledged our commitment on improved service delivery, such as the implementation of 24-hour installation for new unifi sign-up, within 2-hour customer support, and a new myunifi app. The announced (copper) network upgrade is also ongoing in our commitment to enhance the overall broadband customer experience. On TM ONE, we look forward to more collaborations with strategic partners and customers in the enterprise and public sector towards enabling digitalisation and smart solutions. This is true to our role as the enabler of Malaysia's Digital Nation aspiration in this era of IR4.0." Prospects for the Financial Year Ending 31 December 2019 The Group's performance improvement initiatives and efficient cost management continue to stabilise our profitability. Our focus remains toward our customers, and to strengthen the Group's performance by investing to improve customer experience, increase customer acquisitions across all segments and grow our revenue.
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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