25 May 2022
TM records steady performance in 1Q2022 with revenue & PATAMI up 2.9% & 4.4%; maintains focus on its growth strategies execution
In the second year of its Transformation, the Group is on track to achieve its 2022 market guidance, focusing on strengthening its core businesses and investing in new growth areas
Telekom Malaysia Berhad (TM) continued its growth trajectory and long-term business sustainability, recording a steady performance in its First Quarter ended 31 March 2022 as compared to the same period last year (YoY).
The Group's operating revenue increased by 2.9% to RM2.89 billion, compared to RM2.81 billion in the same quarter last year, driven primarily by increased demand for voice, Internet and multimedia. Despite rising competition to offer converged solutions among telco and other technology players, TM continued to deliver strong customer growth across its operations.
Capitalising on its core businesses and investing into new growth areas, TM further ramped up its transformation initiatives, delivering profit after tax and non-controlling interests (PATAMI) for the quarter at RM339.9 million or 4.4% higher than the RM325.5 million recorded in 1Q2021. The Group also recorded lower financial costs subsequent to the early redemption of its RM2.0 billion sukuk in March 2021, as well as lower foreign exchange translation losses on borrowings. The Group has applied the Cukai Makmur statutory tax rate accordingly for the current quarter.
Accelerating into the second year of its Transformation, TM brought forward its manpower optimisation to enable earlier realisation of expected benefits to the Group. This, along with foreign exchange impact on trade settlement has led to a 5.0% decrease in EBIT at RM560.4 million for 1Q2022 compared to RM589.7 million in the same quarter last year. Excluding these costs, the Group's underlying EBIT is 14.0% higher at RM650.2 million compared to RM570.5 million in 1Q 2021. Free Cash Flow is lower by 15.1% at RM658.8 million compared to RM775.7 million due to higher CAPEX as the Group continues to invest in business expansion and meeting customers' demands through technology refresh and network delivery, ensuring steady growth.
unifi: Double-digit revenue and subscriber growth
unifi continued its growth performance, recording revenue increase of 10.6% from RM1.25 billion to RM1.38 billion in the current quarter. Sustained by increasing demand from Internet, voice and sales of devices, with cumulative fixed Internet subscribers increasing by 17.5% against the corresponding quarter last year. unifi remains the largest growth contributor for the Group.
unifi will continue to maintain its leadership in fixed broadband and enhance its Fixed-Mobile Convergence (FMC), enriched with TV and streaming content. This reflects its commitment to improve its FMC customer experience with better and seamless service. unifi will also grow its SME digital platform as a one-stop service centre for solutions catering especially to SMEs nationwide.
TM Wholesale (TMW): Higher revenue from increased demand for data services
TM Wholesale (TMW) also recorded a growth performance for 1Q2022, with revenue increasing by 1.2% from RM631.9 million in 1Q2021 to RM639.5 million, mainly contributed by higher revenue from voice and data services. This was underpinned by increasing demand from High-speed Broadband Access (HSBA) and higher International Voice and Data.
To date, TMW continues to enable industry broadband and 4G network via its fibre infrastructure, with the ongoing 5G rollout further strengthening that role. On the international front, it will continue to serve other OTTs and hyperscalers with connectivity and data centres, while regionally, TM Wholesale aspires to establish Malaysia as a digital hub for ASEAN via new submarine cables, enhanced data centre solutions and edge computing.
TM One: Renewed focus on growing B2B digital solutions market
TM One, the Group's enterprise and public sector arm, recorded a 7.4% decrease in revenue from RM925.2 million to RM856.8 million in 1Q2022 due to decline in data services revenue.
Strengthening and growing its B2B digital solutions, TM One has focused its efforts on high potential industry verticals, namely healthcare, manufacturing, education, oil & gas, banking, financial services & insurance (BFSI) and public sector. It has entered a partnership with Tune Protect and Huawei Malaysia that saw Tune Protect becoming the first organisation in Malaysia to host an insurance core system on public cloud (Cloud αEdge).
Commentary and Outlook from Imri Mokhtar, TM Group Chief Executive Officer
"With our economy and borders reopening, TM is powering Malaysia's journey on its road towards recovery, by ensuring the vision of an inclusive and extensive Digital Malaysia becomes a reality.
"Into the second year of our Transformation, we are focused on strengthening our core business while investing into new growth areas to meet customers' demands. In ensuring sustainability in the long run, we continue to grow our profitability to invest and seize opportunities arising from digital acceleration.
"One of these opportunities is in the exciting space of digital solutions and services for enterprises. Building on TM One's existing capability and relationships with enterprises and the public sector, we will deliver speed and agility through our new digital arm Credence: a corporate start-up led by technology leaders.
"unifi continues to better its fixed broadband and Fixed-Mobile Convergence value proposition to improve customer experience, while expanding our offerings to provide quality entertainment to customers at home or on-the-go.
"We have also achieved some key milestones in our sustainability efforts. TM One has successfully secured the Green Electricity Tariff from Tenaga Nasional Berhad for its data centres in Kuala Lumpur, Cyberjaya and Johor Bahru, contributing to a lower carbon footprint as the demand for cloud storage inevitably increases. This is in addition to the existing Green Building Index (GBI) certification earlier obtained for its core data centres. TM's broader ESG commitment also remains consistent with Malaysia's initiatives towards achieving net-zero Greenhouse Gas emission for the country by 2050.
"Meanwhile, TM Wholesale continues to establish Malaysia as a regional digital hub via new submarine cables, edge computing, data centres and supporting international connectivity. On the domestic front, TM Wholesale continues performing its role as the enabler for industry broadband, 4G and 5G network via fibre infrastructure that will transform the nation's connectivity capabilities."
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TM’s All-In-One Digital Solutions With Geran Digital PMKS Madani To Accelerate MSME Digitalisation
Kuala Lumpur, 25 October 2023 - Unifi Business is set to accelerate local MSME digitalisation through Geran Digital PMKS Madani (GDPM). Recently reinforced in Budget 2024, the government aims to incentivise local MSME through the GDPM to embrace business digitalisation for business growth. Local MSME make up 97.4% of overall domestic businesses and provide employment to 47.8% of the population. However, a majority of them (about 77%) remain at the basic stage of digitalisation. Through this grant, MSME entrepreneurs will be able to subscribe to Unifi Business’ packages and solutions with 50% matching grant of up to RM5,000 per customer. This includes a wide range of services such as Unifi Business’ high-speed internet, Unifi Mobile Biz high-speed 4G and 5G mobile data, as well as Unifi Air Biz’s unlimited 5G data. Unifi Business will also offer solutions that are made to fit the digital needs of MSME such as: - Digital Marketing Solution – Digital marketing campaign professionally managed by a certified campaign manager enabling wider reach and stronger online brand presence Unifi eCommerce Hub – a single integrated platform to sync online and offline stores to manage product inventories, orders, monitor sales and revenue, as well as social media enquiries. Allow users to build interactive websites with live chat and built-in online payment features Kaspersky Small Office Security – protect important things that matter to businesses regardless of IT skill level, providing “Always On-Security for Always-On Businesses”. Mohamad Yusman Ammeran, Unifi’s Head of SME, said, “Beyond connectivity and business solutions, Unifi Business is committed to helping Malaysian MSME to strengthen their business and leadership capabilities. As the preferred digital partner to 400,000 MSME nationwide, TM supports their market visibility, growth and digital capabilities through our service and solutions with 600 Unifi Business Consultants nationwide, of whom, more than 100 are certified with the International Certification of Digital Literacy (ICDL).” One of Unifi Business’ customers who benefitted from digital transformation was Tineshwara Rao of Suria Pest Control, Penang, who said, “Our sales have doubled and expanded beyond the northern states through the services and solutions provided by Unifi Business, particularly its Digital Marketing Solution. We would like to thank Unifi Business for helping us grow into a more digitally enabled business.” Another happy customer, Athirah Abdul Rajak, owner of Mama’s Best Food from Sabah echoes, “Sales of my product increased by 50% by using Unifi’s Business’ eCommerce Hub. I am now supplying one shipping container of our product on a monthly basis to Johor. Unifi Business made this possible for me.” In addition to the grant, MSME customers will also be able to enjoy new lower prices offered via Unifi Business’ Fibre plans. This includes a limited time promo for 100Mbps broadband for RM99 per month, which is approximately 30% lower compared to the new price. To find out more about the Geran Digital PMKS Madani with Unifi Business, visit biz.unifi.com.my
TM AND SINGTEL’S NXERA BREAK GROUND FOR SUSTAINABLE, HYPER-CONNECTED DATA CENTRE CAMPUS IN JOHOR
ISKANDAR PUTERI, 25 JULY 2024 – TM and Nxera, the regional data centre arm of Singtel’s Digital InfraCo unit, held a groundbreaking ceremony for their data centre campus in Iskandar Puteri, Johor. The groundbreaking comes one month after the announcement for a joint venture to develop data centres in Malaysia and uplift Johor’s digital hub status. This 64MW state-of-the-art, sustainable, hyper-connected, AI-ready data centre campus reinforces Malaysia’s high quality digital infrastructure. It also supports the government's efforts to drive the digital economy and transform the country into a hub for industrial growth, AI development and innovation. Malaysia's Digital Minister YB Gobind Singh Deo; YB Lee Ting Han, Chairman, Johor State Investment, Trade, Consumer Affairs and Human Resources Committee; and Singapore's Senior Minister of State for Trade and Industry and Culture, Community and Youth Low Yen Ling graced the groundbreaking event as the Guests-of-Honour. Minister YB Gobind said, "This investment by TM and Nxera reinforces Malaysia's position as the digital hub in Southeast Asia, further advancing the nation's economic growth. Based on advance estimates, Malaysia's economy expanded 5.8% in the second quarter of 2024, and such investments are in line with projections that Malaysia's digital economy will contribute 25.5% to the nation's GDP by the end of the year. The relationship between TM and Nxera expands to Malaysia and Singapore, with both nations being a good case study of a productive working partnership between two ASEAN member states." YAB Dato Onn Hafiz Ghazi, Menteri Besar, Johor said, “TM-Nxera’s upcoming data centre campus, located right here in Iskandar Puteri, holds particular significance as one of the Johor-Singapore Special Economic Zone’s first investment projects. We welcome the comprehensive scope of their investment with respect to high quality infrastructure, sustainability as well as employment and skilling opportunities which supports our emphasis on talent development, green technology and renewable energy. This data centre campus will serve as a catalyst for economic growth and enable businesses to harness the power of cloud computing and AI. We hope this will set the stage to shape a vibrant business ecosystem where more high-tech and high-value content companies will be attracted to locate their operations within the special economic zone and give a further boost to Johor’s digital economy.” Senior Minister of State Low said, “Data centres are important enablers of our digital economy, powering our economy’s data-driven needs. As technology advances, robust, next-generation digital infrastructure like the TM-Nxera Data Centre will be essential to support AI advancements and foster value creation. Today’s groundbreaking marks a milestone in the deepening economic relations between Singapore and Malaysia, and I look forward to the outcomes we can achieve through close collaboration.” Amar Huzaimi Md Deris, TM’s Group CEO, said, “Today marks a pivotal milestone in our journey to becoming a digital powerhouse as we break ground on this cutting-edge AI-ready data centre. This facility exemplifies our commitment to fostering industry growth, driving innovation, and enhancing socio-economic development. With support from the Federal Government, and Johor state agencies and authorities, we are confident that this AI-ready data centre will equip businesses with unparalleled computing power, AI capabilities, and other cutting-edge technologies. We are excited to lead the way into a future where AI and data analytics drive transformative solutions, revolutionising industries and enriching both our nation and the world.” Bill Chang, CEO of Nxera and Singtel’s Digital InfraCo unit, said, “As one of the largest investments in the Johor-Singapore Special Economic Zone, this state-of-the-art data centre campus is an integral part of our mission to empower digital economies and communities in the region while ensuring energy and water resources are deployed responsibly and efficiently. It expands our regional data centre platform’s strategic presence in this fast-growing Asia region. With Malaysia embracing AI to drive competitiveness and innovation, our campus will spur economic growth by helping companies leverage AIs and cloud computing to drive efficiencies and accelerate their business transformation. Our investment isn’t just about the campus, it is about bringing benefits to the local economy through digitalisation, developing local talent, creating employment opportunities and enhancing international connectivity. We would like to express our gratitude to the Johor State Executive Council, Invest Johor, Iskandar Regional Development Authority, Malaysia Digital Economy Corporation and Malaysian Investment Development Authority for their support.” Scheduled to begin commercial operations in 2026, this cloud-enabled Tier 3 data centre campus will use liquid cooling to handle higher power density AI workloads. The facility will be designed, built and certified to Leadership in Energy and Environmental Design (LEED) standards, incorporating energy and water-efficient solutions to optimise the use of resources. This underscores the joint venture's commitment to long-term sustainability goals. To support the new data centre campus, the joint venture plans to expand submarine cable connectivity, enabling a thriving and vibrant digital ecosystem. Located just 16 km from Singapore, the data centre campus will allow customers to seamlessly expand their infrastructure from the city state and the rest of the region. Further, the data centre can be scaled up to 200MW in response to market demand. In addition, apart from creation of new employment opportunities that is important for nation building, the joint venture will invest in building talent for the data centre industry by fostering collaborations between universities in Singapore and Malaysia. It aims to design comprehensive courses with specialised curriculum to provide students with well-rounded knowledge and the requisite skills to propel Malaysia’s growth aspirations. For communities and the region, this means superior country-to-country connectivity and a smarter, more resilient digital economy. As announced in Bursa, this joint venture is conditional upon receiving approval from TM shareholders in the upcoming EGM.
TMpoint Kajang reports one (1) new positive Covid-19 case
Safety protocols activated – outlet closed for sanitisation till 27 December 2020 Telekom Malaysia Berhad (TM) wishes to confirm one (1) new positive case of COVID-19 amongst its employees at TMpoint Kajang on 13 December 2020. The employee is currently receiving treatment at a Government hospital. Following the confirmed case, TM has taken immediate action to close its TMpoint Kajang until 27 December 2020 for disinfection and sanitisation in accordance to the guidelines set by the Ministry of Health (MoH). Meanwhile, other TMpoint outlets remain in operations in adherence to the Standard Operating Procedures (SOPs) as well as TM’s added safety guidelines to ensure our customers continue to be served. TM management and staff are together praying for the speedy recovery of all those affected by the pandemic. Meanwhile, detailed contact tracing is being carried out by the MoH, assisted by TM’s COVID-19 Crisis Response Team (CRT), to identify and inform those whom had close contact with the positive case. Identified close contacts are being contacted by MoH for further advice and action. TM would like to remind everyone at all times to stay safe – practice social distancing, maintain personal hygiene and adhere to the SOPs as advised by the Government. TM would like to reiterate that it has taken and will continue to take all necessary measures to ensure the health and safety of its customers, employees and community.
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