30 May 2024
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.
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TM migrating unifi customers to private IP for more seamless connectivity and better security
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TM Sustains EBIT Growth in 1H 2024, Declares Higher Interim Dividend of 12.5 sen per Share
1H 2024 Key Highlights (vs 1H 2023) · Operating revenue remained steady at RM5.74 billion · EBIT increased by 14.5% to RM1.26 billion · Fixed broadband subscribers grew by 1.2% to 3.143 million · Interim Dividend declared at 12.5 sen per share, up from 9.5 sen in the previous year KUALA LUMPUR, 26 August 2024 – Telekom Malaysia Berhad (“TM” or “the Group”) today announced its financial results for the first half ended 30 June 2024 (1H 2024), remaining resilient amidst a challenging market environment. The Group recorded a 14.5% growth in Earnings Before Interest and Tax (EBIT), reaching RM1.26 billion compared to RM1.10 billion in the same period last year, driven by continued focus on enhancing operational efficiency and effective cost management. Meanwhile, TM’s operating revenue for 1H 2024 remained steady at RM5.74 billion, reflecting consistent performance. Profit after Tax and Non-Controlling Interests (PATAMI) in 1H 2024 decreased by 8.6% to RM821.2 million due to a one-off tax credit in 2023. Nevertheless, the Group’s fundamentals remained strong and continued to underpin its growth trajectory. In line with this, TM has declared a higher interim dividend of 12.5 sen per share, amounting to RM479.7 million, an increase from 9.5 sen per share interim dividend declared in the previous year. Amar Huzaimi Md Deris, TM Group Chief Executive Officer, said, “Our latest Unifi UniVerse continues to excite the market. Its comprehensive suite of convergence offerings provides a seamless experience that meets the diverse needs of digital consumers. As a result, we have seen growth in our customer base, strengthening TM’s position as Malaysia’s true convergence champion. “We are also advancing Malaysia’s digital infrastructure through the development of the Next Generation Emergency Services 999 (NG999) in collaboration with various Government agencies. Leveraging advanced technologies such as data analytics and AI, this initiative will significantly improve the nation’s emergency response capabilities in replacement of the existing MERS999. “We proactively explore new business opportunities through strategic partnerships such as the recent collaboration with Singtel’s Nxera to build a sustainable, hyperconnected AI-ready mega data centre in Johor. This initiative will support high-performance computing and future cloud and AI applications for hyperscalers and tech providers. Simultaneously, we remain committed to supporting Malaysia’s 5G ecosystem, ensuring that Malaysians benefit from the latest advancements in connectivity and digital services. “We are focused on strengthening our core fundamentals, managing costs effectively, and seizing growth opportunities to ensure we stay well-positioned for the future. We remain steadfast in driving our aspiration to become a Digital Powerhouse by 2030, while positioning Malaysia as the digital hub for the region,” said Amar. Capital expenditure (CAPEX) in 1H 2024 amounted to RM460 million, representing 8.0% of total revenue. The Group plans to ramp up this investment towards the end of the year, focusing on enhancing its network infrastructure both nationwide and regionally. This includes the development of new submarine cable systems and the expansion of data centres. The Group maintains a positive outlook for the current year, aligning with its 2024 market guidance. Lines of Businesses (LOBs) Performance Unifi Maintains Leadership in Converged Services Unifi recorded a 1.2% increase in fixed broadband subscribers, reaching 3.143 million in 1H 2024, supported by customer acquisition and retention strategies. Unifi also gained positive traction with its latest mobile proposition and will continue improving and adapting its mobile offerings to better meet customer needs. During the period, Unifi launched UniVerse, a suite of its best convergence offerings for home internet, mobile, entertainment and lifestyle solutions and introduced the newest UNI5G WOW Prepaid offering with unlimited 5G + 4G data with uncapped 5G speed and rewards, catering to needs of today’s digital customers. Unifi’s most recent offer is the limited-time promotion of 200GB 5G Monthly Data Pass for just RM1. This fantastic add-on gives UNI5G Postpaid 39 customers an extra 200GB of high-speed 5G data every month, enhancing their mobile experience significantly. For more information, visit https://unifi.com.my and https://unifi.com.my/mobile/postpaid. Unifi’s excellence was recognised with several awards including the Best Fixed Business Service Provider and Best Home Broadband Service Provider at the recent PC.com 2024 Readers’ Choice Awards, Ookla's Fastest Wi-Fi Provider in Malaysia award, and the World’s No.1 Fastest 5G Download Speed provider from Open Signal. TM One Drives Digital Transformation for Enterprises and Government TM One sustained a positive momentum in 1H 2024, achieving a 2.1% increase in revenue compared to the same period last year, reaching RM1.41 billion amidst a challenging business environment. During the period, TM One launched the Innovation Lab and Enterprise 5G Lab, collaborative spaces designed to accelerate the realisation of emerging digital services and solutions such as Enterprise 5G and AI-powered industry solutions for both enterprises and government sectors. 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TM Global is expanding its digital infrastructure, including international connectivity and data centre services, to meet the global carriers and hyperscalers’ demands. Key initiatives include the development of a mega data centre in Johor in partnership with Singtel’s Nxera, as well as expansion of its existing Klang Valley Data Centre (KVDC) and Iskandar Puteri Data Centre (IPDC). It has also made progress in deploying extensive 4G and 5G backhaul sites nationwide and increasing high-speed broadband access in Malaysia, in supporting digital inclusivity across the nation. TM Global was recognised in multiple awards - Telecom Company of the Year – Malaysia, and the Wholesale Company Initiative of the Year – Malaysia, at the Asian Telecom Awards as well as Best Operator in Emerging Market Category at the Carrier Community Global Awards 2024.
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