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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TM takes action to curb further Covid-19 spread; continues to serve the nation with essential services

Reactivates “Work From Home” nationwide following new cases recorded Telekom Malaysia Berhad (TM) today confirmed that since its previous announcement on 11 October 2020, ten (10) further positive cases of Covid-19 have been recorded amongst its employees; bringing a total of 13 positive cases thus far. The newly affected areas include Menara TM and TM Annexe 1 in Kuala Lumpur as well as at a network node in Rawang. This is in addition to the earlier affected areas of Menara TM ONE in Damansara, Kuala Lumpur and Kepayan office in Kota Kinabalu. From the 13 cases, the Company is pleased to announce that three (3) employees have been discharged from the hospital and quarantine centre they were admitted to, and are continuing their recovery and home-quarantine for 14 days. Meanwhile, the other ten (10) employees are currently receiving treatment. Following the new positive cases, detailed contact tracing is being carried out by the Ministry of Health (MoH), assisted by TM's COVID-19 Crisis Response Team (CRT), to identify and inform those whom had close contact with the affected employees. Identified close contacts are being contacted by MoH for further advice and action. TM immediately took the necessary actions which include immediate closure of the affected premises for seven (7) days to facilitate thorough disinfection and sanitisation in accordance to the guidelines set by MoH. The disinfection and sanitisation works at TM Annexe 1 and the network node in Rawang have been completed on 14 October 2020, Menara TM ONE on 13 October, while the work at Menara TM is ongoing and expected to be completed by 5.00 pm today. TM offices in Sabah, Kedah and other Red Zone areas had been closed much earlier as proactive precaution in correspondence to the increasing cases there recently. With immediate effect, TM is also activating "Work From Home" (WFH) arrangements for all Warga TM nationwide until 31 October 2020. On Monday, TM had implemented the same for TM employees in Selangor, Kuala Lumpur and Putrajaya, ahead of the Conditional Movement Control Order (CMCO) announced. Commenting on the latest developments, Group Chief Executive Officer of TM, Imri Mokhtar said, "The sudden rise in cases amongst our Warga TM family, and indeed throughout the nation is of worrying concern. I join the Board, management and all Warga TM in praying for the speedy recovery of the affected employees as well as for the safety, protection and health of all Malaysians during these testing times. Meanwhile, we have taken immediate action and activated safety protocols for the buildings and areas affected. Most importantly for our employees, we are announcing working from home arrangements for all Warga TM nationwide effective today till the end of October. As TM provides essential services for the nation, our frontliners involved in critical functions serving our wide base of customers shall continue to work, adhering to the SOP guidelines from the authorities." "Over 4,700 critical function employees at our TMpoints, contact centres, field teams for service installation and restoration continue to lead the front line in serving our community, businesses and Government in the Red Zones. This is even more important especially when many Malaysians are now back to working from home. To all the TM frontliners and the TM Covid-19 Response Team (CRT), our highest appreciation for stepping up in the line of duty, and our prayers for your safety and protection," he added. TM is also providing free Covid-19 swab tests in collaboration with its panel of medical service providers for employees who may have been exposed to the virus. This is yet another proactive measure taken by the Company to curb the spread of the virus amongst its employees. Identified employees can undergo the test from 15 October 2020 onwards at a temporary drive-through facility set up at Menara TM. More facilities will be set up at other locations, if required. TM would also like to remind everyone at all times to keep safe social distance, hygiene and adhere to the SOPs as advised by the Government. The Company urges everyone who has any symptoms to seek medical attention and not risk further exposure to their loved ones and anyone else. TM wishes for the safety and health of all Malaysians nationwide; together may we return stronger.

unifi set to bring more #khabarbaik news in 2019

unifi committed to raise the bar with positive changes via #khabarbaik movement unifi, the premier Convergence brand under Telekom Malaysia Berhad (TM) today shared its plan for 2019 through its #khabarbaik movement, which is set to bring more good news Malaysians nationwide. The #khabarbaik movement was unveiled by Moharmustaqeem Mohammed, Acting Executive Vice President, unifi. Apa khabar? unifi says #khabarbaik The #khabarbaik movement represents unifi’s commitment to continue raising the bar on its products and services as unifi constantly innovates and understands its customers’ needs. unifi hopes that the movement will be a shift in attitude and approach that seeks to spread positivity, and this has been implemented internally since the beginning of 2019. #khabarbaik is the attitude that will be embraced by each and every employee of unifi that will translate to how the business is run and the positive changes it will bring to consumers and Malaysia at large. According to Mohar: “As we kick start the year 2019, this has been a very exciting juncture for unifi. Even as we continue to evolve as an organisation, our commitment has and will always be to enable digital adoption and a converged lifestyle for all – across all backgrounds and income groups. We have contributed a great lot to the country’s digital development and we think that is worth celebrating. In the meantime, we will continue to work hard to address customer pain points. We will keep listening and then, come back to market with more #khabarbaik. That is why the #khabarbaik movement is our way forward to serve Malaysia through our product offerings and design a better customer experience.” First #khabarbaik of 2019 Living up to its promise of delivering good news to Malaysia, unifi also unveiled the brand new unifi Mobile postpaid lineup, designed with every Malaysian in mind. “unifi aspires for every Malaysian household to be seamlessly connected to their favourite content and services. However, we understand that there is no ‘one size fits all’ approach as each member of the family will have different data consumption. From the teenager who consumes many videos on the move, parents with young ones that love to explore educational content online, to the grandparent who uses data primarily to keep in touch with their family members – unifi Mobile’s newest plans aim to enable every individual’s unique digital lifestyle, just at the right price points,” Mohar shared. With the latest unifi Mobile offering, ‘Adik’, who might not need as much data, can opt for a smaller mobile data plan of 2GB (1GB LTE + 1GB 3G) at only RM19. The unifi Mobile 19 plan also comes with five (5) minutes talk time and 25 SMS. Meanwhile, ‘Atuk’ or ‘Nenek’ could opt for unifi Mobile 29 and ‘Kakak’ can choose unifi Mobile 39 which offers 3GB (2GB LTE + 1GB 3G) and 5GB (4GB LTE + 1GB 3G) respectively – along with 50 minutes talk time and 25 SMS. As for those who are happy with 10GB data, they can subscribe to the unifi Mobile 59 plan that comes with 9GB LTE + 1GB 3G, 100 minutes talk time, and 25 SMS. These tailored plans will ensure that everyone has just the right plan they need – not too much, not too little. These new offerings will join unifi’s existing unifi Mobile 99 plan which offers never ending data, calls, and SMS. Now Malaysians will have more options to choose from when looking for a postpaid plan. The full range of unifi Mobile offerings are available for purchase on unifi’s  website at unifi.com.my By introducing simpler and more affordable plans, open for subscription to all Malaysians, unifi is able to make internet connectivity more accessible to all citizens, ensuring that Malaysians from all walks of life are able to benefit from the digital lifestyle. “This is definitely aligned to what we hope to spread with #khabarbaik. It is our commitment to ensure that access to internet connectivity is affordable and seamless for all. We hope that by introducing value add plans like the unifi Mobile 19, we can enable more Malaysians to adopt digital technology into their lifestyle,” said Mohar. Updates on unifi turbo and Streamyx upgrades In another exciting update, aggressive speed upgrading exercise to unifi packages are currently ongoing for existing Streamyx customers residing in unifi coverage areas. Meanwhile, for Streamyx customers in non-unifi coverage areas, TM is committed to bring high speed broadband to them through alternative technologies by TM or other infrastructure providers. Where technology permits, TM is doubling the Streamyx speed at the same price of their current broadband plan. “In total, about 1 million are eligible for the turbo upgrading exercise. Existing unifi customers will see up to a tenfold speed boost with the turbo upgrades; from 10Mbps to 100Mbps, from 30Mbps to 300Mbps, from 50Mbps to 500Mbps, and from 100Mbps to 800Mbps – all at the same rates that they are currently paying. To date, we have successfully upgraded over 910,000 unifi customers and more than 66% of over 340,000 Streamyx customers residing in unifi coverage areas to unifi; at the same price of their current plan. The rest of the 130,000 Streamyx customers who have yet to grab this opportunity for the free upgrade are encouraged to do so. We aim to complete this speed upgrading exercise by March 2019. In the meantime, we do acknowledge that some upgraded customers are facing speed hiccups which we are resolving soonest possible,” Mohar elaborated. “In the coming year, we promise to deliver more #khabarbaik in the form of greater connectivity, seamless customer experience, and an all-round digital lifestyle to all parts of Malaysia,” he concluded. To learn more about the latest unifi offerings, log on to unifi.com.my

HONOR Malaysia appoints TM One as Cloud service provider to serve customers across three continents

HONOR, a leading global provider of smart devices adopts TM One Cloud solutions – α Edge (pronounced as Alpha Edge), to serve its customers across three Telekom Malaysia Berhad (TM), via its enterprise and public sector business solutions arm TM One, recently join forces with HONOR Technology (Malaysia) Sdn Bhd, one of the leading global providers of smart devices, to provide Cloud services not only for HONOR Malaysia's customers but also across three (3) continents – namely, Asia, Africa and Latin America. This strategic alliance signals a major expansion of TM One α Edge regionally. The end-to-end comprehensive Cloud services were chosen by HONOR Malaysia to host the eCommerce platform and digital solutions, in its ongoing efforts to expand its presence in the premium market segment. Currently, HONOR has 3,000+ service centers, 2,000+ call center representatives and close to 8,000 employees globally to provide premium and efficient services to consumers in over 100 markets. The TM One α Edge is equipped to deliver the required flexibility to scale effectively for any unprecedented demands in traffic or business challenges. Shazurawati Abd Karim, Executive Vice President of TM One, commented: "Fuelled by the pandemic, the extraordinary surge in Cloud adoption by many businesses especially those connected to serving consumer markets, bodes well for future growth and recovery. This partnership marks another important growth milestone in strengthening Malaysia's position on the global front as a preferred digital destination and business hub. We are an ideal Cloud service provider for the nation and this is yet another testament to our leading role as the enabler of Digital Malaysia." Towards ensuring a stable and secured service, some of the key aspects of the α Edge portfolio for HONOR Malaysia includes a dedicated 24/7 technical team, with professional and managed services. In addition to TM One's robust global network and secured digital connectivity infrastructure, the service operates through TM One Tier-III Data Centres, to ensure benefits such as low latency coupled with reachability to customers. Meanwhile, Kee Ee Neng, Chief Financial Officer of HONOR Malaysia, commented, "It's a proud moment to be in the same alignment with TM One when it comes to digital solutions. We look forward to providing the leading technology and developing further opportunities with TM One on this exciting journey ahead." α Edge, a part of TM One Cloud α, has been designed to provide seamless migration of critical workloads to the Cloud, quickly, easily, cost-effectively, and without constraints. It comes ready to support HONOR Malaysia's IT platform and digital solutions with Artificial Intelligence (AI) capabilities, resource monitoring and identity access management, as well as advanced security tools and cybersecurity support. The strategic partnership between TM One with HONOR Malaysia leverages TM One's leading end-to-end cloud service solution designed for businesses. For further information on TM One's Cloud services, visit www.tmone.com.my/solutions/cloud-services and for more info on HONOR Malaysia, visit www.hihonor.com/global

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