29 Aug 2018
TM turns in revenue of RM5.78 billion YTD for 1H2018 amidst challenging environment
|
Key Highlights of 1H2018:
|
Telekom Malaysia Berhad (TM) today announced its financial results for the first half of the year ended 30 June 2018. The Group posted revenue of RM5.78 billion year-to-date, 2.7% lower from RM5.94 billion in the corresponding period last year. This was primarily due to a decline in voice, data and other telecommunication related services as well as provisions recognised against wholesale revenue impacted by regulatory mandated access pricing.
Group Reported Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for 1H2018 was RM1.61 billion as compared to RM1.80 billion in 1H2017 mainly due to the lower revenue. Stripping off non-operational items, such as unrealised forex loss on trade settlement, Group Normalised EBITDA was 13.9% lower, at RM1.60 billion.
Group Reported Earnings Before Interest and Tax (EBIT) for 1H2018 was RM444.5 million as compared to RM560.9 million in 1H2017. Stripping off some non-operational items, in particular unrealised foreign exchange loss on international trade settlement, normalised EBIT stood at RM433.0 million.
Group Reported Profit After Tax and Non-controlling Interests (PATAMI) was at RM259.1 million, whilst Group Normalised PATAMI was RM261.1 million, after setting aside non-operational items such as unrealised forex impact on borrowings and international trade settlements.
Datuk Bazlan Osman, Acting Group Chief Executive Officer, TM said: "The first six months of 2018 has been very challenging for us, from rapid developments in the market to increasing regulatory pressures. Given the current landscape, these events further add challenges to our financial performance. Being cognizant of the potential impact to TM, we had revised our 2018 Headline KPIs as well as Capex guidance in early July 2018. Alongside this revision, we also launched our Performance Improvement Programme (PIP 2018) as a broad initiative to overcome the headwinds. The PIP 2018 is guided by four (4) main pillars - Revenue Uplift, Sustained Profitability, Improved Cash Flow and Increased Productivity. We expect the regulatory and sector challenges to persist in the near-to-midterm and undertaking these PIP 2018 initiatives are necessary measures to ensure the sustainability of our business for the long term."
The total capital expenditure (CAPEX) for 1H2018 amounted to RM710 million or equivalent to 12.3% of revenue. Of the total capex investment, 18% was allocated for Core Network, 59% was for Access, and the balance 23% for Support Systems.
“Delivering convergence and going digital remains our priority. We will continue to focus on growth, yet be more prudent in our spending and sweat our existing assets. As such, we are also revising our capex guidance for the full year to 19 – 20% of revenue.”
“We currently have 2.30 million broadband customers and 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 47% compared to just 37% in 2Q 2017,” he added.
At the media briefing, TM also announced that its unifi Basic plan, which is a 60GB broadband-only unifi plan will now be extended to everyone beginning September 2018 (no longer exclusive for households with income of less than RM4,500 per month).
“Affordability and accessibility of quality highspeed broadband services is important to TM, and we are committed to lead the charge to unlock the potential of a digitally-savvy Malaysia. As such, we are happy to announce that we are extending the unifi basic plan to all,” he concluded.
Comparison: Quarter-on-Quarter (2Q2018 vs 1Q2018 Results)
For the current quarter under review, Group Revenue stood at RM2.94 billion, higher by 3.1% QoQ mainly attributed to an increase in data, internet and other telecommunication related services.
Group EBITDA rose 10.3% QoQ to RM845.9 million from RM766.7 million the previous quarter. Stripping off non-operational items, such as unrealised forex loss on trade settlement, Group Normalised EBITDA was 5.9% higher, at RM823.4 million.
Group EBIT grew by 27.2% QoQ to RM248.9 million from RM195.6 million in 1Q2018. On a normalised basis, EBIT improved by 9.6% QoQ to RM226.4 million from RM206.6 million in 1Q2018.
Group PATAMI was at RM102.0 million, lower by 35.1% QoQ from RM157.1 million in the preceding quarter, whilst Group Normalised PATAMI was RM155.8 million QoQ, higher by 48.0% QoQ, after setting aside non-operational items such as unrealised foreign exchange impact on borrowings and international trade settlements.
Comparison: Year-on-Year (2Q2018 vs 2Q2017 Results)
For the current quarter under review, Group Revenue stood at RM2.94 billion, lower by 1.5% YoY mainly due to voice and data services.
Group EBIT stood at RM248.9 million, lower by 3.2% YoY from RM257.1 million in 2Q2017. On a normalised basis, EBIT was lower by 25.6% YoY to RM226.4 million from RM304.5 million in 2Q2017.
Group PATAMI stood at RM102.0 million, less 51.5% as compared to 2Q2017; whilst Normalised PATAMI also decreased 25.1% YoY to RM155.8 million from RM208.0 million in 2Q2017.
Prospects for the Current Financial Year Ending 31 December 2018
The recent regulatory challenges and market environment have had major impact to the overall revenue estimates and earnings of TM Group in the current quarter. TM anticipates that the challenging environment will persist for both of our retail and wholesale segments. In the midst of these challenges, TM will continue our focus towards strengthening performance of our core business and operations.
YOU MAY ALSO LIKE
TM appoints Dato’ Mohd Rais Azhar as the new CTIO
Bids farewell to Dato’ Rafaai Samsi on his retirement after 40 years of service in TM Telekom Malaysia Berhad (TM) today announced the appointment of Dato' Mohd Rais Azhar as its new Chief Technology & Innovation Officer (CTIO) with effect from 18 February 2018, following the retirement of Dato' Rafaai Samsi as the CTIO of TM on 14 February 2018. Prior to this, Dato' Rais was the Deputy CTIO, and in addition to his role as the new CTIO, Dato' Mohd Rais remains the Chief Information Security Officer of TM - the position that he has served since 2017. Dato' Mohd Rais joined TM in 1988, and 2018 marks his 30th year with the Company. As TM's CTIO, he will be responsible for Network, IT and overall technical delivery, fulfilment and assurance for TM Group. In addition, Dato' Rais will strategise, formulate, direct and lead the implementation and operations of Information Security organisation. This covers Information Security Strategy, Architecture, Governance, Risk, Compliance, Development, Threat Intelligent and Operations in order to ensure the Confidentiality, Integrity and Availability of information assets protection for TM Group. Commenting on the new appointment, Dato' Sri Mohammed Shazalli Ramly, Group Chief Executive Officer, TM said, "We are pleased to congratulate Dato' Mohd Rais on his promotion as TM's CTIO. As a TM home grown leader, he has the experience and expertise to elevate innovation at TM in the era of digital natives." Dato' Rais has vast experience in Malaysia's telecommunications industry and he was also one of the pioneers in establishing Corporate Information Superhighway (COINS) team, providing the first TM's Frame Relay service back in 1997. In addition, Dato' Mohd Rais has been involved in and actively led numerous transformation projects in TM including both High Speed Broadband (HSBB) projects. Meanwhile, Dato' Sri Shazalli also expressed his utmost gratitude to Dato' Rafaai Samsi for his dedication, contribution and loyalty to the TM Group during his tenure, "We would like to express our highest gratitude to Dato' Rafaai for all that he has done for TM. In the 40 years that he has served TM and the nation, he has engineered not just our technical transformation, but more importantly, our transformation from being a network-oriented company, to one that is service-oriented." "As the former CTIO, Dato' Rafaai's behind-the-scenes contribution and efforts towards TM's success goes beyond Information Technology & Network Technology. The change that he pioneered at Customer Experience has been transformational. He has changed the mindset of Warga Keluarga TM to become even more customer-centric. This is certainly in line with our consistently above global telco average Customer Satisfaction Measure (TRI*M) index scores over the years - a testament to our concerted efforts in improving customer experience. This laid the foundation of TM as Malaysia's Convergence Champion and strengthens our brand promise of "Life Made Easier"," he added. "We are grateful for not just his professional and technical contributions to the Group, but also his efforts in nurturing talent. Dato' Rafaai has been a mentor and coach to many people in TM that are now among our current crop of leaders. The management and Warga Keluarga TM are immensely grateful to Dato' Rafaai for his leadership and all his contributions to the Company. We would like to take this opportunity to wish him all the best for his future endeavours," Dato' Sri Shazalli concluded. Profiles Dato' Mohd Rais Azhar Dato' Mohd Rais Azhar, aged 54, was appointed as Chief Technology & Innovation Officer (CTIO) and Chief Information Security Officer (CISO) effective 14 February 2018. A Bachelor of Science (Computer Science) Degree graduate from Indiana State University, USA; Dato' Mohd Rais is also the Chief Information Security Officer of TM since 1st January 2017. Prior to this, he was the Deputy Chief Technology & Innovation Officer of TM in 2017 and was appointed as Vice President of Network Architecture and Technology in 2010. Dato' Rais is the Chairman of TM Technical Security Council and a board member of Telekom Research & Development Sdn Bhd, a wholly owned subsidiary of TM. In 2017, Dato Rais attended Leading Digital Business Transformation programme at IMD Business School in Lausanne, Switzerland as part of his executive education. Dato' Rafaai Samsi Dato' Rafaai holds a Bachelor of Science (Hons.) in Electronic Engineering from Brighton University, United Kingdom and a Masters in Communications Management from the University of Strathclyde, United Kingdom. He started his career in telecommunications with the then Jabatan Telekom Malaysia in 1978. He was later appointed CEO of TM - NTT Communications Corporation's joint venture company in July 1997 before returning to TM in July 2001, where he was assigned as General Manager of a number of divisions including State Business Operations, Market Development and Domestic Carrier Business Division. He was then appointed Vice President, Marketing and Sales for the Wholesale segment in October 2006 and subsequently promoted to Executive Vice President to lead the Wholesale Line of Business on 1 July 2008. Dato' Rafaai was assigned as Deputy CTIO to run the day-to-day operations and turn-around initiatives of the IT and Network Technology Division since January 2013. He was assigned as Head of Customer Experience Management and Transformation reporting directly to TM Group CEO on 1 July 2014 and at the same time, remained as the Deputy CTIO. He was also the Chairman of Service Management Council (SMC) responsible for TM's overall customer service management. Before his retirement from TM, Dato' Rafaai was TM's Chief Technology & Innovation Officer (CTIO) and Chief Customer Experience Officer since 18 February 2017.
unifi choices for different home needs and affordability
New unifi 100Mbps plan at RM 129 per month, complements unifi Basic plan for all Following hot on the heels of unifi Basic for all Malaysians, Telekom Malaysia Berhad (TM) recently introduced the new unifi 100Mbps plan at RM129 per month - delivering broadband experience of 100Mbps with unlimited usage, access to unifi PlayTV packages for everywhere, anytime entertainment as well as free 600 minutes of voice calls. This new unifi 100Mbps plan represents a refreshed, simplified and great value all-in-one home offering. Imri Mokhtar, Executive Vice President of unifi, said: “We are constantly innovating by listening closely to our customers - understanding the household needs for fast unlimited broadband, endless entertainment and connecting with one’s family and friends. Recently on 12th July 2018, we had announced our plans to upgrade our existing unifi home customers to higher broadband speeds (currently in pilot phase), so that they could enjoy the better experience a higher speed broadband can offer. Now, we are opening up this experience to new unifi home customers by offering them this 100Mbps unifi plan - as a start.” “Our customer insights show that more and more Malaysia homes are opting for high speed broadband to fuel their daily digital lifestyle - especially driven by the rising usage of streaming services and digital games (e-sports) as part of today’s household lifestyle,” he added. Imri explained: “As the nation’s partner in unleashing the digital potential of a fully connected Malaysia, it is our obsession to enable every Malaysian household to enjoy the benefits of digital technology. Through unifi 100Mbps at RM129 per month, we are setting a new benchmark of speed and affordability - 60% lower than previous 100Mbps plan. We believe that 100Mbps will soon become the starting high speed for Malaysian households as more and more digital applications and content demand greater bandwidth, speed and reliability. Hence, we are anticipating our customers’ needs with this new 100Mbps plan, with higher speed plans coming to you very soon.” To date, more than 1.2 million customers nationwide are enjoying unifi broadband. After a strong market presence serving these 1.2 million early digital adopters, we are opening up to all the more affordable entry-level unifi Basic plan, priced at RM79 per month with 60GB quota, to serve a larger market segment to be onboard the high speed broadband experience. With the new unifi 100Mbps plan and unifi Basic for all, unifi is now able to serve the needs and affordability of a wider base of Malaysian homes. For example, the unifi Basic plan perfectly caters to smaller households that only require approximately 60GB a month for their specific lifestyle needs at this point of time. As the household grows, they can now comfortably move over to the new unifi 100Mbps which fits more arrays of digital lifestyle needs, including access to unifi’s PlayTV content and free voice calls. “We believe that internet connectivity is the basic enabler in growing a more digital Malaysia, leading to a seismic shift in consumer lifestyle. Today, consumers are increasingly benefitting from internet services. They value instant gratification and dislike disruptions to their connected lives. From unifi’s perspective, what consumers want is a converged digital lifestyle where everything is at their fingertips everywhere, anytime. That is exactly what we are offering them,” Imri said, in closing. To learn more about the latest unifi offerings, log on to unifi.com.my
Unifi perfecting convergence with many amazing firsts; 1st mobile liberation, 1st live interactive show
unifi celebrates brand repositioning exercise by rewarding customers with 1 million complimentary 20GB SIMs up for grabs! unifi, the premier high-speed broadband service under Telekom Malaysia Berhad (TM) today unveils its refreshed brand look and feel, welcoming a new era in connectivity, anchored towards Accelerating Convergence and Empowering Digital. The launch showcased unifi’s latest look and offerings from home, wifi, mobile and TV. This is following the announcement of its rebranded unifi mobile (formerly known as webe) in November 2017 and its award-winning TV and video streaming service, HyppTV, to unifi TV on 12th January 2018. The launch of the refreshed unifi look and offerings was graced by Dato’ Sri Mohammed Shazalli Ramly, Managing Director / Group Chief Executive Officer, TM and Datuk Bazlan Osman, Executive Director / Deputy Group Chief Executive Officer, TM; together with Imri Mokhtar, Executive Vice President, unifi; Jeremy Kung, Executive Vice President, unifi TV; Moharmustaqeem Mohammed, Chief Executive Officer, unifi mobile as well as TM’s senior management. Commenting on the launch, Imri enthusiastically said, “unifi kicks off 2018 with a refreshed look and feel and the completion of the single brand approach to mobile and TV in addition to home and wifi. With this strategic repositioning, we are now the one and only brand in Malaysia that offers truly seamless Internet connectivity everywhere; at home, public WiFi, mobile services as well as a wide array of world-class content, under one roof. unifi is perfecting the convergence experience to enable the digital aspirations of our customers. In doing so, it further strengthens our role as the key enabler in realising the nation’s Digital Economy aspirations as well as accelerating the adoption of a truly converged digital lifestyle and Internet of Things (IoT).” “This is the first roll out of the year of our various initiatives - with the refreshed look of unifi home’s “Perfect Squad”, unifi mobile’s first ever mobile liberation “#BEBAS” and unifi TV’s innovative Live Interactive gameshow “Teka Tekan”, promising RM20,000 daily cash prizes to viewers. As we move forward into the year, we will continue working towards enriching more of our customers’ moments. A multitude of exciting initiatives have been planned for this year. So our customers can really look forward to more experiences in perfect oneness, only with unifi,” he added. Today, unifi is introducing “The unifi Perfect Squad” a.k.a. ‘Skuad Sempurna unifi’ #pasangsekarang (#installnow). This is in continuation of its Year End Promotion campaign that extended our reach to areas where there are still plenty of available unifi ports around the country. The ‘Skuad Sempurna unifi’ is activated to engage with households within the optimum radius of the ports to enjoy various special packages such as unifi Advance from only RM139 per month. The squad will be making rounds at these potential areas to sign up new customers and setting up appointments for our installers to come and complete service activation. The packages also come with an array of unifi TV pack choices, devices and call plans. For more information on unifi, log on to www.unifi.com.my or visit unifi social media pages at www.facebook.com/weareunifi (formerly Everyone Connects), www.twitter.com/unifi (formerly @TMCorp) and www.twitter.com/HelpMeunifi (formerly @TMConnects), and unifi.com.my/youtube. unifi mobile (formerly known as webe) has continued to show an encouraging performances ever since the launch of its no data-quota plan in 2016. This fully digital service will create another breakthrough in the country’s telecommunications industry with the introduction of new unifi mobile #BEBAS - the very first product that liberates what customers would expect from a mobile product. It is neither a prepaid or post-paid product, but instead a hybrid that enables customers the freedom to select their very own preferred data needs and usage requirements without any contracts and commitments. The new unifi mobile #BEBAS boasts #anythingiwant #paywhenever #noexpiry (#pilihapasaja #bayarbilabila #kredittakmati); all within its newly unveiled mobile app, mobile@unifi. Breaking the norm of conventional mobile and fully on digital, the new unifi mobile #BEBAS allows consumers to enjoy uninterrupted connectivity on-the-go. To mark the launch of the new unifi mobile #BEBAS, unifi will be giving away 1 million complimentary 20GB SIM cards for all Malaysians! Customers just need to download the mobile@unifi app available on AppStore or PlayStore, and place their order. Upon registration, customers may collect their SIM cards at any TMpoint outlets nationwide or opt for delivery to their doorstep for only RM10.60 (inclusive of GST). For more information on unifi mobile, visit www.unifi.com.my/mobile or unifi mobile social media page at www.facebook.com/unifiMobile. Staying true to its promise to come out with more interactive and innovative offerings, the newly rebranded unifi TV (formerly known as HyppTV) has launched Malaysia’s first-of-its-kind LIVE interactive gameshow called Teka Tekan, which allows viewers to engage with the show from the comfort of their homes and stand a chance to win RM20,000 cash prize daily. The show has premiered starting 15 January 2018, on HyppSensasi (Channel 116). Teka Tekan gameshow is open to all unifi TV customers. All they have to do is grab their unifi TV’s remote control and answer five (5) questions during the live game show by pressing the # button, and then the corresponding coloured button on their remote control for the answers. To make it even livelier, the game show will be hosted by four (4) local celebrities namely Acong Sweet Child, Farouk Hussein, Shuib Sepahtu and Anas Ridzuan. Teka Tekan is also brought to you by Huawei, as the sponsor for this first ever LIVE interactive gameshow. For more information on Teka Tekan, visit www.tekatekan.unifi.com.my. In conjunction with Teka Tekan’s inaugural airing, HyppSensasi HD is also offering FREE viewing in order for all our viewers to participate in the amazing game show, and to also enjoy other local entertainment programmes exclusively available on the channel. Besides the newly rebranded unifi TV, the mobile app HyppTV Everywhere is also now known as unifi PlayTV. With this, customers can continue to enjoy world-class entertainment and award winning shows through its value for money channel packages in full HD from either Live TV, Video On Demand or Interactive channels offering while enjoying the service uninterrupted regardless of any weather. For more info on unifi TV, log on to www.unifi.com.my/tv and visit unifi TV social media page at www.facebook.com/unifiTV (Facebook). TM serves its customers with relevant convergence propositions via the 5 pillars of Smarter Living, Smarter Businesses, Smarter Cities, Smarter Communities and a Smarter Nation - delivering a seamless digital experience and integrated business solutions to cater to individual lifestyle and business communication needs - towards making “Life Easier”.
NEWSLETTER
Just drop your details and stay updated with the world of Telekom Malaysia. We promise – no spam!