26 Nov 2019

TM reports operational improvement for 3Q 2019 amidst challenging environment

TM reports operational improvement for 3Q 2019 amidst challenging environment Article Header
TM
UNIFI
TM One
TM GLOBAL

Telekom Malaysia Berhad (TM) today announced its financial results for the quarter ended 30 September 2019.

  • ​Financial and Operational Highlights as at Year-to-Date (YTD) September 2019 vs YTD September 2018:
    • Group Revenue of RM8.40 billion, 3.8% lower against YTD September 2018 – in line with guidance- mainly due to lower contribution from all lines of products except data and non-telecommunication related services.
    • Group Reported Earnings Before Interest and Tax (EBIT) for YTD September 2019 increased to RM1.20 billion, from Loss Before Interest and Tax (LBIT) of RM187.3 million over the corresponding nine (9) months period last year, 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) showed significant improvement with a 718.9% growth YTD to RM683.8 million, from RM83.5 million in the corresponding period last year. Stripping off non-operational items, Normalised PATAMI stood at RM810.9 million, higher by 53.7% against the same period last year.
    • The total capital expenditure (CAPEX) was within guidance at 8.8% of revenue or RM736.0 million. Out of the amount spent, 16% was made for Core Network, 58% for Access and the balance 26% was made for Support System.
  • unifi updates:
    • Increased YTD convergence penetration to 55% of TM Households compared to 48% in 30 September 2018.
    • Total broadband customers as at 30 September 2019 was more than 2.15 million.
    • #khabarbaik customer experience related initiatives in 3Q2019:
      • Streamlined all Streamyx packages to a new unifi Lite plan 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 an easy experience in managing unifi account.
  • TM ONE updates:
    • Signed a series of MoUs and cross-industry strategic digital collaborations with Ministry of International Trade and Industry (MITI), Ministry of Rural Development, Global Health, UMW Corporation Sdn. Bhd. (UMW), Open University Malaysia (OUM), Bintang Urusjuta (M) Sdn Bhd and Digital Perak Corporation Holdings (DigitalPerak).
    • TM ONE further demonstrated its capability to enable digital businesses and government with ten (10) smart solutions and end-to-end Hyperconnected Ecosystem.
    • Held its annual flagship event LEAP Summit 2019 themed "Creative Disruption – Get Ready for It!" to share the successes and lessons from global creative disruptors and provide in-depth insights on industry trends towards Industrial Revolution 4.0 (IR 4.0).
  • TM GLOBAL updates:
    • TM as the National Telecommunication Infrastructure Provider continues to serve as the industry backbone - serving and collaborating with all other licensed operators in Malaysia as the strategic enabler of the Government's National Fiberisation and Connectivity Plan (NFCP) towards reaching more underserved areas nationwide and supporting 5G requirements with its ready and upgraded network infrastructure.

 

Dato' Noor Kamarul Anuar Nuruddin, Group Chief Executive Officer, TM, commenting on the results:

"Overall, in 3Q 2019 we saw continued improvements in our fundamentals. I'm pleased to report that our cost management initiatives under our performance improvement plan carried out since last year continues to yield results with profitability improvement. We have managed to keep a closer eye on our operational efficiencies to deliver sustained profitability with lower YTD OPEX/revenue. However, in line with sector contraction, our revenue challenges still persist on the retail front, in line with our expectations and 2019 market guidance.

Our CAPEX for YTD September 2019 is well within guidance, totalling 8.8% of revenue, and on track as we continue our targeted investments to ensure we deliver better service experience for all our customers.

We continue to offer attractive unifi products and promotions to acquire more customers, whilst addressing Streamyx customers and coverage pain points with price adjustments and our wireless offerings. Over the last three months, we have expressed our intention to be the key driver for Malaysia's Digital Nation aspirations. TM is ready to propel the nation into Industrial Revolution 4.0 (IR4.0) with our proposal to be the nation's infrastructure provider in both the fixed and mobile space. This commitment is reinforced with our participation in the 5G demonstration projects and our preliminary moves toward building infrastructure readiness. In the next few months, we will be showcasing our 5G use cases in SS15, Subang Jaya, Selangor and Langkawi, Kedah in collaboration with local municipal councils and other potential partners. The use cases will cover Big Data Analytics, Smart City, Smart Tourism and Smart Agriculture clusters. The deployment of our tested and proven 5G-enabled smart solutions for the showcase are testament of our commitment in humanising technology towards making life easier, and enriching the quality of life for all Malaysians."

Prospects for the Financial Year Ending 31 December 2019

The Group's performance improvement initiatives and efficient cost management continue to improve our profitability. Our focus remains toward our customers, and to strengthen the Group's performance by investing to improve customer experience across segments to grow our revenue.

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02 Jun 2021
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"As more users are at home during this period and utilisation is expected to increase, customers may need extended support to optimise their WiFi setup at home. unifi customers can book Wi-Fi optimisation services from the unifi Elite team to further enhance their internet experience at home. The first 100 slots are now complimentary and interested unifi home broadband customers can book the slot by completing the online form at unifi.com.my/bookunifielite. Existing unifi customers can also access the self-serve channels at both unifi Community and EasyFix portal which provide customers with tips and guides to tackle their usage experience issues quickly." "Our contact center remains open, primarily for assurance support. Due to the higher volume of interactions during this period, customers are encouraged to utilise our digital channels which are available 24/7 for account-related enquiries, management and payment," added Shanti. unifi currently offers #unifiyourworld that comes with up to RM200/month savings and unifi Mobile 99 is now priced at RM59/month with no contract for existing unifi customers. For business customers, they can sign up for unifi's business packages which now come with high-performance Mesh Wi-Fi and business solutions. Updates on Latest Developments of All TM Customer Service Operations during the FMCO period Digital Channels For more information, query, customer service, subscription and any support related needs, please visit www.unifi.com.my. Customers can also reach out to unifi via our digital channels as follows: myunifi app (available for Android and iOS) unifi portal – unifi.com.my unifi online community forum at community.unifi.com.my Email – help@tm.com.my Facebook – https://www.facebook.com/weareunifi/ Twitter – https://twitter.com/helpmeunifi. TMpoint All TMpoint outlets nationwide (except in Sarawak) are open following the allowed operating hours by the National Security Council and local authority regulations. Only essential transactions are available which include new service applications, payments at kiosks and collection of SIM cards. 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TM would like to wish all its customers and stakeholders a safe and healthy stay at home under the FMCO and to remind them to continue to take precautionary measures such as social distancing and good personal hygiene to curb the spread of the virus. The Company will continually monitor for developments on the ongoing situation and adapt its services to help customers, whenever needed as the safety of its employees and members of the public are of paramount importance to us.  

17 Jul 2018
TM set to empower educational institution in Penang with dedicated premium network connectivity and smart school system solution

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16 Dec 2019
TM once again soars high at NACRA 2019!

The Company was recognised as among the best at the annual Corporate Report awards ceremony Telekom Malaysia Berhad (TM) has been accorded the Best Annual Report (Silver) at the recent National Annual Corporate Report Awards (NACRA) 2019. The Company was once again recognised as a leading corporate institution in Malaysia when its 2018 annual report bagged four (4) excellence in major categories. The awards were: Overall Excellence Awards for Most Outstanding Annual Report of the Year (Silver) Best Annual Report in Bahasa Malaysia (Gold) Best Sustainability Reporting Award (Silver) Industry Excellence Award for Main Board Company in Telecommunications & Media category – 23 consecutive years Commenting on the win, Dato' Noor Kamarul Anuar Nuruddin, Group Chief Executive Officer, TM, said, "We are indeed very excited and honoured to once again receive multiple awards at NACRA 2019. These recognitions not only reflect our good compliance to Bursa Malaysia's stringent listing requirements, but more importantly, the award attests to the high standards we place on shareholders' communication. It also demonstrates our commitment towards upholding a high level of corporate governance, transparency, disclosure of information to our stakeholders as well as integrated corporate reporting. This is in line with our tenet on the importance to achieve the highest levels of corporate governance, in order to build trust and credibility with our key stakeholders." "I would like to take this opportunity to congratulate each and every Warga TM for their hard work and tireless effort towards producing the 2018 Annual Report. I am personally proud with the achievement and hope that this will give a boost for all of us to deliver better. This win at NACRA also definitely further strengthen our position as one of the country's leading corporate institutions," added Dato' Noor Kamarul. NACRA is jointly organised by Bursa Malaysia Berhad, Malaysia Institute of Accountants (MIA), and The Malaysia Institute of Certified Public Accountants (MICPA). The key objective of NACRA is to promote excellence in corporate reporting, greater transparency and accountability by respective parties in their financial reporting and the awards are to acknowledge and recognise high quality corporate reporting.

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