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.
YOU MAY ALSO LIKE
TM accelerates digital adoption amongst Pekan Rabu entrepreneurs
More than 300 local entrepreneurs at Pekan Rabu are set to move to the next level in digitalisation with the availability of 800Mbps unifi connectivity through collaboration with Koperasi Pekan Rabu. Telekom Malaysia Berhad (TM) continues to expand its unifi broadband connectivity to the Pekan Rabu entrepreneur community towards increasing digital adoption amongst them through a collaboration with Koperasi Pekan Rabu at Kompleks Pekan Rabu, Alor Setar, Kedah. The programme was launched by YB Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz, Minister of Finance in a ceremony compliant with the Standard Operating Procedure (SOP). Also present were Dato' Asri Hamidon, Secretary-General of Treasury; Dato' Paduka Ammar Dato' Shaikh Mahmood Naim, State Secretary of Kedah; Imri Mokhtar, Group Chief Executive Officer, TM; Romani Wan Salin, Information, Communications and Multimedia, Domestic Trade and Consumer Affairs Committee Chairman and Azhar Abdul Rahman, State Director, Malaysian Communications and Multimedia Commission (MCMC). Commenting on the programme, Imri said: "The pandemic has changed our lifestyle and accelerated digital adoption among the communities and businesses. We are excited to join hands with Kedah State Government and Koperasi Pekan Rabu to provide one (1) year free high speed WiFi connection of 800Mbps at Pekan Rabu. We hope this can boost the digital journey of business communities there and enable the entrepreneurs to further enhance their businesses with digital solutions. We will also upskill the Pekan Rabu entrepreneurs with training sessions on digital applications such as our cari@unifi digital marketing platform and Instaweb for website building." "As the national connectivity and digital infrastructure provider, we remain committed to our unique role in supporting the Government's nation-building initiatives such as MyDIGITAL – Malaysia Digital Economy blueprint towards establishing a digital economy and empowering Digital Malaysia," he added. With the availability of the high speed connectivity, Pekan Rabu business operators are set to move to the next level with digital enhancement while maintaining its authenticity as an iconic, must go location in Kedah for its traditional, aesthetic and locally-produced products.
TM aspires towards a human-centred technology company in delivering digital Malaysia following successful 37th AGM
2021 a milestone first-year of the New TM Transformation Telekom Malaysia Berhad ("TM" or "the Group") today successfully concluded its 37th Annual General Meeting, with all 13 Ordinary Resolutions and one Special Resolution tabled duly approved by its shareholders. The Meeting was conducted online for a third consecutive year to allow maximum flexibility for engagement with shareholders. The event saw over 1,000 shareholders attending virtually. Hosting the proceedings for the first time, Tan Sri Mohammed Azlan Hashim, Chairman of TM's Board of Directors said, "2021 has been a milestone first-year in our New TM Transformation, with the Group setting a solid foundation as a growth-oriented PLC investing for optimum long-term returns for its shareholders, while also continuing its nation-building efforts to realise a truly Digital Malaysia." Alongside the Board of Directors, key senior leaders including Imri Mokhtar, Managing Director and Group Chief Executive Officer; and Razidan Ghazalli, Group Chief Financial Officer were also in attendance to offer insights into the 2021 Audited Financial Statements and the Group's moving forward business priorities. "In 2022, we aim to continue growing our operating revenue by strengthening our core business momentum to improve profitability, enabling us to invest for future growth. Our first quarter of 2022 recorded steady revenue growth at RM2.89 billion, an increase of 2.9% from this same period last year, despite heightened competition. We also ramped up our transformation initiatives and delivered profit after tax and non-controlling interests (PATAMI) at RM339.9 million, or 4.4% higher. We will continue to optimise cost and improve productivity in our effort to raise EBIT to more than RM1.8 billion," Imri explained. He added: "We are intensifying our efforts in the remaining seven months to deliver the next chapter of our Transformation. We will look at a total CAPEX spend between 14-18 per cent of revenue, with spending primarily focused on network expansion and modernisation together with enhancing customer experience." unifi will continue to maintain its leadership in fixed broadband and enhance its Fixed-Mobile Convergence (FMC) proposition, enriched with TV and streaming content. This reflects its commitment to improve its FMC customer experience with better and seamless service. unifi will also grow its SME digital platform as a one-stop service centre for solutions catering especially to SMEs nationwide. TM Wholesale will continue to enable industry broadband and 4G network via its fibre infrastructure, with the ongoing 5G rollout further strengthening that role. On the international front, it will further serve other OTTs and hyperscalers with connectivity and data centres, moving towards establishing Malaysia as a digital hub for ASEAN via new submarine cables, enhanced data centre solutions, and edge computing. TM One, as the sole home-based cloud service provider will also offer end-to-end managed services with robust connectivity and infrastructure. In addition to ensuring data sovereignty and security for the MyGovCloud initiative, TM One will be ramping up its data centres to support the nation's Cloud First agenda. Recognising that the future is digital, TM has also invested in strengthening its digital services through Credence, a new arm that will focus on expanding the capabilities of enterprises in their digital transformation journey. Helmed by senior leaders from the technology sector, this new business will serve existing TM customers as an end-to-end Cloud and Services solution partner, offering services from tech infrastructure to business insights, IT landscape migration, SaaS, managed services as well as analytics. While improving connectivity and digitisation solutions to enable a better Malaysia, the human factor remains the true centre of TM's growth agenda. Imri concluded: "Our aspiration is to evolve towards becoming a human-centred technology company. From our beginnings as just a fixed telco, we are now a converged telco providing voice, internet and data through both fixed and mobile technology, which further delivers content, data centre and cloud services. The next step is to evolve from delivering converged connectivity into a human-centred technology company – delivering lifestyle and business solutions for our customers with innovative digital technology and applications. "In a market where telcos and other digital players now have a play in almost every solution, customer experience will be the true differentiator in attracting and retaining customers."
TM enhances young graduates employability with its TM Protégé Programme
TM PROTÉGÉ Ready to Work (RTW) programme is in line with Government’s effort to raise the employability level of graduates Telekom Malaysia Berhad (TM) continuously empower Malaysian graduates with its education-oriented and skill enhancement programmes. Most recently, the Company enrolled participants for its Ready to Work (RTW) programme, namely Professional Training and Education for Growing Entrepreneurs or PROTÉGÉ, in line with the Government's effort in raising the employability level of the graduates. This PROTÉGÉ programme or previously known as Program Skim Latihan 1Malaysia (SL1M) is under the supervision of PROTÉGÉ Secretariat and the Ministry of Entrepreneur Development and Cooperatives (MEDAC). The main objective of this programme is to improve the marketability and entrepreneurial skills of unemployed graduates, including through on-job-trainings and guidance programmes in collaboration with industry experts. It is also aimed at producing more entrepreneurs and job creators who are competitive, meet the current industry need and ready for the global market. TM recently held an engagement session - 'Majlis Ramah Mesra TM bersama PROTÉGÉ' - with the participants of its latest TM PROTÉGÉ Programme intake at Dewan Tun Canselor, Multimedia University (MMU), Cyberjaya. Farid Basir, Chief Human Capital Officer, TM attended the event and shared some tips and thoughts on career growth and development with the participants. Also present at the event were Norhadznita Hj Mohammad Ilham, Head Secretariat PROTÉGÉ, MEDAC, Prof. Dato' Dr Mazliham Mohd Su'ud, President of MMU, Norkhairul Wahab, Chief Executive Officer, MMU Cnergy and Badrul Hisham Bahari, Chief Executive Officer, GITN Sdn Bhd. Commenting on the PROTÉGÉ programme, Farid said, "The creation of a digitally-ready community and future-proof workforce has always been one of the pillars under the Company's Digital Malaysia aspiration. While we continue to evolve as an organisation, we have always been committed to our role towards building the nation. Through programmes like TM PROTEGE, TM aspires to empower the leaders of tomorrow with relevant skills in innovation and technology towards serving a more digital society and lifestyle, digital businesses and industry verticals, as well as digital Government. This includes nurturing a highly skilled workforce and accelerating digital adoption via on job training with industry guidance and professionals expertise. Our involvement in PROTÉGÉ reflects our staunch support towards the Government's efforts in increasing the employability of the young graduates and equipping them for Industrial Revolution 4.0 (IR4.0). This is befitting our role as the national connectivity and digital infrastructure provider, empowering Malaysia's Digital Nation aspirations." Since 2011, under the SL1M programme, TM has trained 2,846 graduates. The initiative was then continued with PROTÉGÉ, which saw 140 participants selected for the first intake in February 2020. They are currently undergoing on-the-job training at TM and GITN Sdn. Bhd, a subsidiary of TM. In September 2020, the programme continues with its second intake of 169 participants who are now attending soft skills training at MMU, Cyberjaya. The eight (8) months intensive programme consists of soft skills classroom and online training for one (1) month, followed by on-job-training (OJT) for seven (7) months. There are seven (7) core soft skills modules involved including communications, technical and management skills required by the industry as well as effective work ethics. The OJT will prepare the participants with a career mindset and enable them to experience the real working environment. This second intake is expected to graduate in April 2021. For graduates who are interested to participate in the next intake, just look out for the enrollment alert at https://tmcareer.tm.com.my. TM PROTÉGÉ is among the major initiatives under TM's Graduates Employability Programme. Other initiatives are unifi Sales Apprentice Programme, participation in virtual career fairs, such as Talentbank Digital Career Fair, Graduan Virtual Digital Career Fair and career webinars with universities. In the near future, TM will also introduce a new graduates' trainee programme for the undergraduates. In the meantime, TM, through its education arm, MMU will continue to support the Government's aspiration towards a digital era ready workforce particularly in the fields of IT, communications and multimedia especially in the current Industrial Revolution 4.0 (IR4.0) era. Since its establishment 22 years ago, MMU has produced over 60,000 graduates with high marketability, including for major players in the industry. Additionally, since its establishment in 1994, TM's foundation, Yayasan Telekom Malaysia (YTM) has awarded education sponsorship to more than 15,000 deserving students of high academic calibre to pursue their studies at government schools and universities in Malaysia and abroad, with a total sponsorship value of over RM549.5 million. YTM continues to focus on nurturing the right talent that will ultimately contribute to the growth of the Company, industry and nation. For more information on TM's Corporate Responsibility initiatives including education sponsorship, visit www.tm.com.my.
NEWSLETTER
Just drop your details and stay updated with the world of Telekom Malaysia. We promise – no spam!