26 Nov 2019
TM reports operational improvement for 3Q 2019 amidst challenging environment
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.
YOU MAY ALSO LIKE
TM One and MPSJ embarks on 5G demonstration project in Subang Jaya
Local communities set to experience ultimate 5G experience with smart solutions; in line with the aspiration to become a Vibrant City by 2030 TM One, the enterprise and public sector business solutions arm of Telekom Malaysia Berhad (TM) and Majlis Perbandaran Subang Jaya (MPSJ) today inked a Memorandum of Collaboration (MoC) for the deployment of three (3) 5G-enabled use cases, namely the Smart Traffic Light, Smart Parking and Smart Safety & Security solutions at SS15, in Subang Jaya as part of the 5G Demonstration Project (5GDP) undertaken by the Malaysian Communication and Multimedia Commission (MCMC). The MoC was signed by Ahmad Taufek Omar, Executive Vice President / Chief Executive Officer, TM One while MPSJ was represented by TPr. Hjh Noraini Roslan, Yang DiPertua, MPSJ. YAB Datuk Seri Amirudin Shari, Menteri Besar of Selangor together with Tuan Haji Rosli Man, Chairman, TM and Gerard Lim, Chief Digital Officer of MCMC witnessed the signing. Also present at the event were YB Michelle Ng, ADUN for Subang Jaya as well as representatives from the State Executive Council. Commenting on the collaboration, Tuan Haji Rosli said; "We are proud and excited to join forces with MPSJ in supporting MCMC's 5G Demonstration Project to deploy 5G infrastructure and services to Malaysians. The use cases that we are rolling out in all of our 5GDP locations are particularly selected to address the specific challenges faced by the community and stakeholders at the respective locations. For Subang Jaya, we have, together with MPSJ, identified prior to the project that parking, congestion and safety issues are among the community's top concerns. Today, TM and MPSJ are together in demonstrating how smart cities can be powered by 5G and Subang Jaya is indeed a perfect location to demonstrate these capabilities. We hope that throughout the 5GDP period, we will be able to show how 5G-enabled solutions can solve the challenges and create an Ultimate Smart City Experience for Subang Jaya, making it a smart city pioneer in Malaysia. This is in support of the Malaysian Communication and Multimedia Commission's (MCMC) efforts in progressing humanity towards improving the quality of lives of the Rakyat." "We hope as 5G becomes a reality, the communities will experience better streaming and connectivity and this will certainly bring a multitude of benefits to Subang Jaya city. Streets, buildings, public and personal devices need to be interconnected in order to manage the resources and operations in Subang Jaya. This can only be cost-effective and efficient if they are automated and connected and this is in line with MPSJ efforts to make Subang Jaya a safe, green, smart, prosperous, healthy and women-friendly municipality. MPSJ plans to install more than 100 high-tech CCTV cameras in the SS15 commercial area to monitor parking and traffic flow and under the proposed pilot project, the CCTVs would be equipped with enhanced technology and algorithms that could gauge the behaviour of motorists and alert MPSJ or the police if any urgent action is required," said TPr. Hjh Noraini. Noraini added that it is MPSJ's hope that this initiative and collaboration will realise MPSJ's aspiration to become a Smart City by 2030 and at the same time, support the Selangor state government vision towards making Selangor as the pioneer smart city by 2025. Through this partnership, TM One and MPSJ agree to jointly collaborate in the deployment of the 5G network with the rollout of the three (3) use cases, where the transmission of TM's 5G service and the use cases have been fully operational since November 2019. Both parties have also agreed to undertake joint marketing and promotion activities of the use cases in SS15, Subang Jaya for a duration of six (6) months. Ahmad Taufek added, "5G is the next-generation network that will serve as the enabling technology for the Internet of Things (IoT), leading to many transformative smart solutions such as the Smart City Solutions and beyond. TM, via our innovative and comprehensive products and solutions will continue to lay the foundation for Industrial Revolution 4.0 (IR4.0) and enabling IoT – to serve a more digital society and lifestyle, digital businesses and industry verticals, as well as digital Government. TM ONE as the enterprise and public sector business solutions arm of TM is committed to support the Group's role as the national telecommunications infrastructure provider of Malaysia's Digital Nation aspirations - that has established the communications backbone of Malaysia with the widest connectivity and convergence network." TM ONE's 5G-enabled Smart Traffic Light solution programmes traffic lights to respond to real-time, rich data collected by connected high-definition (HD) cameras and sensors, to enable improved traffic flow and reduces idle time at red lights. The Smart Parking solution enables real time parking bay monitoring using HD camera and Artificial Intelligence (AI), so users are able to search for vacant parking bay and navigate via path finder to reduce the time spent searching for the spot. Meanwhile, MPSJ enforcers can monitor parking occupancy and illegal parking incidents from the command centre and deploy resources more efficiently, thereby reducing traffic congestion at outdoor parking areas. The Smart Safety and Security solution provides advanced surveillance and real-time monitoring through video streaming from sensors and HD camera. Powered by AI capabilities, and integrated with TM's emergency response team, immediate action can be deployed in case of emergencies, as well as predictive analysis on actual incident situation for proactive response. Apart from the three use cases deployed in partnership with MPSJ, TM deploys three (3) other use cases through its research and development arm, TM R&D Sdn Bhd (TM R&D). Two (2) use cases - Smart Retail Analytics and Smart Water System are deployed at private commercial premises in SS15, Subang Jaya while Smart Vehicle will be implemented at TM Fleet in the area. Earlier last week, the Company announced that it has begun transmission of 5G service in Pulau Langkawi, where it is deploying the first 5G Stand Alone (SA) network, and will be demonstrating more 5G use cases there.
TM Announces a Positive Start in 1Q 2024, Sustaining its Continuous Growth Trajectory
Q 2024 Key Highlights (vs 1Q 2023) Operating revenue grew 1.8% to RM2.84 billion EBIT increased 37.5% from RM473.3 million to RM650.9 million PATAMI increased 28.7% from RM330.1 million to RM424.8 million KUALA LUMPUR, 30 May 2024 – Telekom Malaysia Berhad (“TM” or “the Group”), today announced a positive start to the fiscal year, with a strong financial performance for the first quarter ended 31 March 2024 (1Q 2024). The Group saw its revenue increase by 1.8% to RM2.84 billion, driven by solid performance from TM Global and growth in Unifi’s subscriber base. Correspondingly, Earnings Before Interest and Tax (EBIT) grew 37.5% to RM650.9 million in the quarter under review on the back of lower total Operational Cost. TM’s Profit after Tax and Non-Controlling Interests (PATAMI) increased by 28.7% to RM424.8 million, demonstrating its sustained profitability. Meanwhile, the Group’s Capital Expenditure (CAPEX) stood at RM204.0 million, or 7.2% of its revenue. These investments were aimed at expanding the Group’s network infrastructure nationwide and regional submarine cable systems. Amar Huzaimi Md Deris, TM’s Group Chief Executive Officer said, “Entering 2024, the operating environment remains challenging due to increased competition and evolving market dynamics. Nevertheless, the Group has shown a positive growth trajectory in the first quarter of 2024. This is evidenced by increased revenue, improved profitability, and steady growth in our fixed broadband subscribers, reaffirming our strong position in the market. “To sustain our positive momentum, we will continue enhancing our retail convergence offerings and value-added solutions in delivering improved customer experience. At the same time, we maintain a strong focus on modernising our data and network infrastructure, as well as enhancing our business-related offerings to meet current and future digital needs. “Moving forward, as part of our transformative journey towards becoming a Digital Powerhouse by 2030, our priorities over the next few years include growing our core businesses, enhancing beyond connectivity by embedding Artificial Intelligence (AI) and capturing new business growth to meet future demands. In addition, we will continue to optimise costs and enhance profitability to ensure better returns for our shareholders,” Amar concluded. The Group maintains a positive outlook for the current year, staying aligned with the previously provided 2024 guidance. Lines of Businesses (LOBs) Performance Unifi maintains leadership in converged services Unifi maintained consistent year-on-year (YoY) growth with a 1.8% increase in fixed broadband subscribers, reaching a total of 3.135 million. This is driven by convergence marketing strategies, aggressive sales and customer retention programmes. It recently launched UniVerse, the best convergence plan to date for broadband, mobile, entertainment, and digital lifestyle solutions, designed to enhance connectivity, content and Home Hub needs of today’s customers. For more information about Unifi UniVerse, visit www.unifi.com.my. During the quarter, Unifi Business, the leading digital solutions partner of over 400,000 Micro, Small and Medium Enterprises (MSMEs) nationwide, partnered with Maybank Islamic Berhad to launch ‘Go Niaga’, a mobile banking bundle to help businesses manage finances and improve income with digital payment options. It also launched e-Pharmacy Solution, a mobile app enabling e-prescriptions via teleconsultation to provide digital inclusion and accessible healthcare for prescribed medications and wellness especially to the underserved communities. Looking ahead, Unifi will continue to solidify its role as a leader in convergence to deliver unmatched converged digital services. TM One drives innovative solutions for enterprise and Government TM One, the enterprise and government sector business solutions arm of TM continues to adapt to market dynamics while seeking new opportunities for growth. During the quarter under review, it recorded a revenue of RM673.0 million. In February, TM One launched the Innovation Lab and Enterprise 5G Lab to accelerate the realisation of emerging digital services and solutions. These labs bring together the latest technologies, digital leaders, inspiring ideas and collaborative spaces to create tailored solutions for its customers and partners. These facilities were set to further develop key areas like Enterprise 5G and innovative AI-powered industry solutions to help organisations thrive in the digital era. Moving forward, TM One will continue to strengthen its core connectivity offerings while driving innovation in digital services, expanding partnerships, and developing solutions that empower its customers. TM Global positions Malaysia as a digital hub for the region TM Global saw a 12.1% YoY increase in revenue to RM742.8 million in 1Q 2024, fuelled by demand for domestic and international data. It has remained as Malaysia’s preferred network infrastructure provider, catalysing the digital industry, fostering 5G ecosystem and expanding High-speed broadband (HSBB) Access in the country. Globally, it provisioned significant managed wavelength capacity for hyperscalers, connecting key regional data centres. It also recorded substantial growth in Content Delivery Network (CDN) traffic to cater to the demand from digital players, enabling Malaysia as a digital hub for the region. TM Global recently received recognition in two categories: Telecom Company of the Year – Malaysia, and the Wholesale Company Initiative of the Year – Malaysia, at the Asian Telecom Awards held in Singapore. This is the second consecutive year TM Global has received these accolades, maintaining its leadership as a shaper of the telecommunications landscape in Malaysia and across ASEAN. TM Global will continue to broaden its digital infrastructure solutions while forging strategic alliances with global carriers to facilitate seamless digital connectivity and services across borders.
TM Records a Promising 1Q2023 Performance with 2.0% Revenue Growth; Continues to Strengthen its Core Business
1Q2023 Key Highlights (vs 1Q2022) · Operating Revenue grew 2.0% from RM2.89 billion to RM2.95 billion, with continuous growth across Unifi and TM Global · EBIT decreased 15.5% from RM560.4 million to RM473.3 million, following accelerated depreciation and impairment · PATAMI lower 2.9% from RM339.9 million to RM330.1 million, lower EBIT cushioned by lower net finance cost and effective tax rate · CAPEX investment stood at 14.0% of revenue or RM413.1 million, heavily attributed to fibre network expansion Amidst the challenges for the year, Telekom Malaysia Berhad (TM) achieved a steady and promising performance in the first quarter that ended on 31 March 2023, compared to the same period in the previous year (YoY). Operating revenue grew 2.0% to RM2.95 billion, from RM2.89 billion in 2022, driven by Unifi and TM Global. TM saw an increase in customers with Unifi now serving close to 3.5 million home and MSME customers, TM One catering to 8,800 businesses, and TM Global serving more than 700 local and regional customers. Its reported Earnings Before Interest and Tax (EBIT) is lower 15.5% to RM473.3 million, from RM560.4 million, following the Group’s decision to accelerate depreciation and impairment of IT assets, due to changes in market conditions. Profit After Tax and Minority Interest (PATAMI) decreased 2.9% to RM330.1 million from RM339.9 million. Lower net finance cost and lower effective tax rate from the recognition of deferred tax assets mitigated the impact of the lower EBIT on the Group’s overall profitability. Capital Expenditure (CAPEX) stood at 14.0% of overall revenue, or RM413.1 million. A significant portion of this investment was dedicated to fortifying its fibre infrastructure, delivering new customer acquisition, international subsea cables investment and 5G fibre network deployment to meet Government’s target of 80% coverage by year end. Unifi sustaining growth trajectory Unifi continues to deliver leadership in convergence service and solutions for both home and MSMEs customers. Unifi reported a 1Q2023 revenue growth of 4.3% from RM1.38 billion to RM1.44 billion contributed by both, growth in number of subscribers and average revenue per customer (ARPC). Unifi fixed broadband subscription increased by 8.1% to 3.08 million propelled by aggressive sales, and promotions such as the 6-months complimentary speed upgrade offered to existing Unifi Home users and 7-days free viewing of all Unifi TV channels during Chinese New Year. Unifi Mobile unveiled its latest offerings, the UNI5G prepaid and postpaid plans, which include complimentary 5G access for all current mobile subscribers. Additionally, Unifi introduced the Pakej Perpaduan Jalur Lebar Tetap (Home Internet) and Pakej Perpaduan Prabayar Mudah Alih (Prepaid Mobile) plans specifically designed for underserved communities, providing inclusive and ubiquitous connectivity for the community. Unifi Business’ collaborative efforts with local government agencies have been instrumental in supporting MSMEs to digitally grow their businesses. As part of this initiative, Unifi Business launched a programme in Sabah that has resulted in a significant participation of local entrepreneurs. TM One navigating challenging market and shifting demand TM One recorded a 6.7% slowdown in revenue from RM773.7 million to RM721.9 million in the current quarter, largely due to the impact of price reduction and lower revenue from one-off customer projects. The delivery of key projects across several industries shall set the pace for TM One in the coming quarters. TM One delivered a Private 5G solution to enable Smart Industry solutions and completed a hybrid cloud project that is instrumental to the IT backbone transformation of its customer. TM is also the only telco with a 100% completion record for the Point of Presence (POP) Phase 1 Project, successfully delivering 233 sites across the northern states, Sabah and Sarawak. Building on the success of TM One 5G Sphere Partner Programme launched end of 2022 where more than 90 leading partners are registered today, TM One launched its Sandbox platform providing a secure and controlled environment for enterprise and Government customers with technology partners to co-create and commercialise innovative smart service solutions, which will propel their digitalisation and automation drive. TM Global catalysing digital inclusivity TM Global reported continuous growth in 1Q2023, with revenue increasing by 3.9% from RM625.1 million to RM649.2 million, contributed by higher data and data centre co-location services. As the leading partner for High-Speed Broadband Access (HSBA), TM Global achieved the highest number of new installations in March, supporting collective industry growth throughout Malaysia. Additionally, close to 8,000 4G and 5G fiberisation site were deployed to meet the growing demands of industry players and enhance nationwide edge capabilities, further propelling national digital initiatives. Internationally, TM Global secured deals from US-based hyperscaler and North Asia digital provider for its wholesale data centre solutions as well as a substantial deal from ASEAN telecommunication player for more than 10Tbps data requirement within this region. TM Global remains focused on positioning Malaysia as the preferred digital hub for the ASEAN region through its comprehensive and customised offerings for hyperscalers, global carriers and digital players. Commentary and Outlook from Dato’ Imri Mokhtar, TM Group Chief Executive Officer “2023 is expected to be a challenging year with changes in the regulatory landscape, heightened competition and other market structure changes. TM will continue strengthening its core business to be commercially sustainable as a Public Listed Company (PLC) whilst continuing to contribute to the nation’s growth via its role as a Government Linked Company (GLC). “As the national connectivity and digital infrastructure provider, TM will continue to execute the fiberisation plan to support the Government’s National Digital Network (JENDELA) programmes as well as the 5G rollout nationwide. TM looks forward to continue playing an active role in the 5G implementation, leveraging its nationwide fibre infrastructure, extensive digital platforms (data centres, edge nodes) and rollout experience. “We remain steadfast as we enter the final year of our 2021-2023 Transformation Programme, and pursue the next wave of growth beyond 2023. In line with our journey to become a human-centred TechCo, we announced the launch of TM’s new HQ and Campus, located in Cyberjaya. The campus will serve as a catalyst for a new way of working that drives agility and flexibility through digital collaboration and hybrid work environment, propelling innovation among our employees, customers and partners. “We will continue to advocate sustainability efforts and strive for progress. TM has released our first Task Force on Climate-related Financial Disclosures (TCFD) report, 2 years ahead of Bursa Malaysia’s 2025 requirement. The report focuses on increasing transparency around the financial implications of an organisations’ climate-related risks and opportunities. “Though cautious with the overall outlook, we remain optimistic with the prospects of increased hyperconnectivity, continuous growth investments in connectivity and digitalisation across all customer segments. TM will continue to enable a Digital Malaysia by offering comprehensive suite of communication services and digital solutions benefitting communities, businesses and Government.”
NEWSLETTER
Just drop your details and stay updated with the world of Telekom Malaysia. We promise – no spam!