25 May 2023
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.”
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TM AND ZTE MALAYSIA ENTER INTO A STRATEGIC PARTNERSHIP TO DEVELOP NEXT-GENERATION TECH THROUGH HYBRID CLOUD 5G CORE NETWORK
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TM Demonstrates Commitment to Long-term Value Creation and Nation-Building at its 40th AGM
KUALA LUMPUR, 27 May 2025 – Telekom Malaysia Berhad (“TM” or “the Group”) demonstrated its firm commitment to delivering long-term value creation while enabling inclusive digital progress for the nation. TM returned approximately RM1.5 billion in value, benefiting various stakeholders through dividends and contributions that supported national socioeconomic progress. At the same time, TM prioritised strategic investments in business growth, community development, social impact programmes, and employee development, further generating a multiplier impact on the broader national economy. These efforts reflect TM’s focus on delivering sustainable returns to shareholders while staying true to its core purpose of creating value for all stakeholders as a nation-builder. “At TM, we see ourselves as facilitators of national progress, driving inclusive digital transformation that empowers enterprises, enriches communities and bolsters economic resilience. We are fully aligned with this vision - staying agile, expanding our capabilities and setting new benchmarks in service excellence to ensure that Malaysia remains at the forefront of the digital economy. This is what it means to be a world-class organisation,” said Dato’ Zainal Abidin Putih, Chairman of TM. This was underscored at TM’s 40th Annual General Meeting (AGM) held today at Multi Purpose Hall, Menara TM, Kuala Lumpur, where all 14 resolutions tabled were duly passed by shareholders. The meeting was chaired by Dato’ Zainal Abidin Putih, with the Board of Directors and Amar Huzaimi Md Deris, Managing Director and Group Chief Executive Officer, in attendance. Empowering Communities through Digital Access and Inclusion Beyond profits, TM is committed to driving digital inclusivity for all including nurturing future-ready talent, empowering communities, and expanding inclusive digital access across the country. For example, TM is expanding its digitalisation efforts and community-building in Pulau Tioman, starting with Kampung Mukut. Similar programmes are being considered for other islands already connected through TM’s submarine cable infrastructure. TM is also committed to develop schools on these islands, with a focus on nurturing youth through STEM education and digital exposure. “Our goal is to build digital ecosystems that empower local communities, helping them shift from traditional livelihoods to sustainable, future-ready opportunities,” said Amar. These efforts are further supported by the TM Future Skills (TMFS) School Programme, where TM has created three ‘nucleus’ schools designed as regional hubs for innovation via the TMFS Digital Hub. TM also plans to onboard 25 new schools in 2025. Meanwhile, Yayasan TM has launched the Yayasan TM TVET Madani initiative to enhance the skill sets and employability of TVET graduates, while its education arm, Multimedia University (MMU) collaborates with schools nationwide to provide early exposure to STEM subjects through workshops and career guidance. At the same time, TM continues to provide tailored digital solutions to more than 400,000 MSMEs nationwide, helping them grow and thrive in the digital economy. Under its talent development agenda, TM has contributed RM641 million to date to nurture close to 19,000 talents, many of whom now contribute to the broader digital economy and are part of the leadership in corporate organisations and national institutions. “This is how we demonstrate that success and achieving higher purpose can go hand in hand,” said Amar. Championing Sustainability and Responsible Growth Sustainability remains core to TM’s long-term strategy. The Group’s Sustainability Framework, introduced in 2024, is built on two key objectives: enabling sustainable growth for customers and communities, and ensuring resilience across the business and value chain. In its data centre operation, TM sources 50% of its data centre energy from renewable resources and implements water harvesting and recycling systems for water conservation. TM is also targeting global benchmarks with a planned Power Usage Effectiveness (PUE) of 1.4 for its expansion projects, with the upcoming Johor facility, developed in collaboration with Singtel’s Nxera, targeting even lower PUE. Technologies such as intelligent cooling systems, solar panels and energy-efficient servers further reduce environmental impact and operational costs, ensuring TM’s growth aligns with global sustainability objectives. TM’s commitment to sustainable practices was recognised at multiple awards in 2024, including the Gold Award for its Smart Forestry AI tool under the Environment & Natural Resources Sub-Category: Climate Change Mitigation and Adaptation in the MTE 2024 SDG International Innovation Awards. This recognition affirms the Group’s leadership in sustainability, aligned with Malaysia’s environmental goals and net-zero ambitions. “We believe sustainability is fundamental, not just an afterthought. Our goal is to grow responsibly, delivering technology that benefits both the economy and the environment,” said Amar. Strategic Execution for Long-term Value Creation 2024 marked the first full year of implementation of its PWR 2030 strategy, which is the Group’s roadmap to becoming a Digital Powerhouse by 2030 and positioning Malaysia as the digital hub for ASEAN. “This phase is about solidifying our foundation to protect the existing core business to better position us in capitalising emerging opportunities such as hyperconnected data centres, AI and GPU-as-a-Service which are among the new growth areas for TM,” said Amar. During the year, TM made significant progress in strengthening its core businesses across B2B, B2C and C2C amidst intensified market competition. Key milestones include strengthening the convergence proposition, advancing digital solutions such as smart services, cloud, cybersecurity, as well as enhancing digital infrastructure such as domestic fibre network, mobile backhaul to support 5G, submarine cable systems and data centres. These strategic developments reinforce TM’s commitment to advancing Malaysia’s digital future while uplifting the broader ecosystem, with Warga TM continuing to be the driving force behind the Group’s growth and success. As TM continues its journey, the Group remains focused on delivering long-term value creation while creating meaningful impact for the nation. “TM is not merely a provider of technological infrastructure, but as an essential enabler and catalyst for a vibrant digital ecosystem, connecting Malaysia to the world and the world to Malaysia. As we move forward into the next phase of our journey, every initiative we undertake moves us closer to becoming a Digital Powerhouse by 2030, one that drives national progress, fosters innovation and ensures Malaysia remains at the forefront of the global digital economy,” said Amar, concluding his presentation at the TM’s 40th AGM.
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