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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Statement on discontinuation of new registration for unifi LITE and Business Broadband
As we embrace the digital lifestyle, we can expect an increase in consumer demand for faster connectivity. To satisfy this need, Telekom Malaysia Berhad (TM) through unifi continues to drive digital connectivity through the accelerated expansion of fibre network nationwide. This is also in support of the Jalinan Digital Negara (JENDELA) action plan to deliver enhanced connectivity experience to all Malaysians. Towards this end, as well as in answering the Malaysian Communications and Multimedia Commission (MCMC)'s call for the provision of high-speed broadband services, unifi has discontinued new registrations for its copper-based broadband services, namely unifi Lite (Streamyx) and Business Broadband. We wish to inform that all our existing unifi Lite and Business Broadband customers will be migrated to the fibre-based unifi service in phases, expected to be completed by 2025. We will reach out to these customers via emails, letters, calls and SMSes, to ensure a seamless migration experience. Until then, all existing unifi Lite and Business Broadband customers will still enjoy their broadband service as is, with no disruption. Should these customers be interested to upgrade their subscription to any of the fibre-based unifi packages that provide more value for their money before the migration exercise, they can reach out to us via 100, Live Chat at unifi.com.my, the myunifi app, or just visit any nearest TMpoint.
TM launches first phase of 5G services for unifi mobile customers and businesses
Strengthening Unifi’s fixed-mobile convergence offering, TM aims to deliver seamless 5G transition and spur Malaysia’s 5G adoption and digital capabilities Telekom Malaysia Berhad (“TM” or “the Group”) is uniquely positioned to accelerate Malaysia’s 5G adoption, as the Group leverages its convergence leadership in delivering seamless fixed and mobile services to customers and businesses. Following the signing of DNB’s Access Agreement on 30 October 2022, TM launched the first phase of its 5G services today, offering unlimited 5G data to existing Unifi Mobile Postpaid customers, as well as new Postpaid and Prepaid customers. “DNB’s Access Agreement provides a level playing field for telcos to access the single 5G network equally, to deliver a wider range of innovative services,” said Imri Mokhtar, TM’s Group CEO. “Leveraging this equal entry into 5G plus our current suite of connectivity and digital solutions, TM will be better placed to drive innovation and digital transformation at a national level, aligning with key digital programmes such as JENDELA and MyDigital to competitively position Malaysia as a technology hub.” “5G will reinforce TM’s leadership in fixed-mobile converged services for our consumer and MSME segments, strengthening our mobile capabilities to provide the widest and fastest all-in-one solution for fixed broadband, mobile service and digital content that meets today’s digital lifestyles and workstyles,” Imri added. Acknowledging that one of the critical factors in 5G adoption is the willingness of customers to purchase new 5G-enabled devices, Unifi Mobile will also offer bundled 5G service-and-device plans, catering to a range of price points to ensure customer affordability from all backgrounds. With 5G currently covering more than 33% of populated areas throughout Malaysia, this first phase is key to grow TM’s reach and presents the opportunity for a new push in Unifi’s convergence play, riding on its strength of 3 million households and close to 400,000 MSME customers. 5G will also strengthen Unifi’s proposition as a preferred digital partner for MSMEs, to provide complete one-stop services to accelerate their business growth. Additionally, via TM One, its enterprise and Government sector arm, TM recently launched its 5G Sphere, a circle of leading technology and smart solution partners to form an ecosystem that will accelerate the co-creation of 5G innovative use-cases, taking enterprise 5G transformation from ideation to realisation. To date, there are 39 partners in this programme. TM’s nation-building efforts with the Government will also speed-up the availability of smart city, smart industry and 5G-enabled applications, creating a more sustainable and inclusive digital society and economy. Simultaneously, TM continues to modernise the country’s fibre network architecture, integrating automation and virtualisation technologies to boost back-end infrastructures that will support the anticipated demand for 5G services and capabilities. Ahead of this commercial launch, TM took strides to ramp up its 5G capabilities to grow its mobile and fixed-mobile convergence position, having recently appointed a seasoned industry leader, Jasmine Lee, as its Executive Vice President, Mobile and Chief Executive Officer of webe, as well as onboarding senior mobile talents to strengthen its innovation and competitiveness. “As we transform to become a human-centred TechCo, TM’s 5G commitment goes beyond connectivity to enabling our interconnected society reshape the way we live and work. We recognise the value that this next-gen technology will bring to communities, businesses and the Government, and will continue to explore new ways to make 5G and digital progress accessible to all,” Imri concluded.
TM’S PAKEJ PERPADUAN JALUR LEBAR TETAP (HOME INTERNET) AIMS TO DRIVE DIGITAL INCLUSIVITY FOR MALAYSIANS
Telekom Malaysia Berhad (TM) has today announced the launch of its Pakej Perpaduan Jalur Lebar Tetap (Home Internet) for underserved communities in Malaysia, in response to the challenges faced by these key communities in the digital age. The offering is aligned with the Ministry of Communications and Digital’s efforts to address concerns of underserved Malaysians from the B40, the elderly, OKU, and army-police veterans in accessing reliable and affordable internet services. Following Minister of Communications and Digital, YB Fahmi Fadzil’s announcement today during the launching ceremony in Bakar Arang, Sungai Petani, Kedah, Pakej Perpaduan Jalur Lebar Tetap is now available for subscription nationwide. This collaboration between TM and the Government demonstrates the shared commitment to deliver digital inclusivity throughout Malaysia. Underserved communities often experience adversity in accessing the benefits of the digital world and uninterrupted connectivity. Students from low-income households, for example, face challenges in accessing online learning platforms, while job seekers may struggle to find employment opportunities or even in starting up small e-Commerce businesses to support their livelihoods. Additionally, a lack of access to digital services and information can limit options for essential services, such as healthcare and Government services. Via this offering, TM seeks to bridge the digital divide through hyperconnectivity and empower these communities with the necessary tools and resources to succeed in the digital age. “As a conscientious corporate entity, TM has a social responsibility to create a meaningful impact on the community. Unifi’s fixed broadband services will be available at a more affordable rate, ensuring that more Malaysians have access to reliable internet connectivity. This will not only enhance their online experience but also enable them to participate in the digital economy, which is crucial for the country's economic growth,” said Tengku Muneer Tengku Muzani, TM’s Chief Corporate and Regulatory Officer. “Access to good connectivity will enable greater access to education and job opportunities, as well as information and services that are increasingly being delivered online. It will also allow individuals to stay connected with their loved ones, regardless of physical distance. Furthermore, it will provide a platform for underserved communities to voice their concerns and engage in broader societal discourse.” “TM stands as the foremost provider of fixed broadband services in Malaysia, delivering superior connectivity and services, bridging the digital divide. As a Public Listed Company (PLC) and Government-Linked Company (GLC), TM is uniquely positioned to balance the interests of its stakeholders, ensuring commercial sustainability while enabling digital inclusivity and driving national development initiatives. With a commitment to excellence and innovation, TM remains dedicated to delivering the best broadband experience and driving a Digital Malaysia. We remain committed to providing innovative solutions and services that cater to the evolving needs of all Malaysians. We believe that everyone should have equal access to the benefits of the digital world, and are proud to be at the forefront of this effort,” added Muneer. Unifi’s Pakej Perpaduan Jalur Lebar Tetap offers an unlimited fixed broadband package at RM69 with savings of RM480 across 24-months, for all new and existing Unifi customers from those key target segments. Registration is open until 31 December 2023 for all eligible subscribers, but will be limited to only one (1) package per person. Earlier in March, TM also announced Pakej Perpaduan Prabayar Mudah Alih (Prepaid Mobile) and together, these services will enable ubiquitous connectivity and reinforces TM’s fixed-mobile convergence leadership, offering integrated fixed broadband, mobile services, and digital content to more Malaysians. Both of these offerings will be provided through Unifi Home and Unifi Mobile respectively. “The benefits of this initiative are manifold, and we hope to better empower underserved communities and give them access to the resources and opportunities that the internet has to offer. This initiative is a testament of our commitment to social responsibility and in creating a more connected world. It also speaks to our vision of becoming a human-centred TechCo, leveraging technologies to provide equal opportunities for every Malaysian. Through our role in digital nation building, we are committed to serving the nation’s interest more directly and to bring greater impact to our diverse communities,” concluded Muneer. For more information on Unifi’s Pakej Perpaduan Jalur Lebar Tetap, visit the Unifi portal at unifi.com.my or any TMpoint outlets nationwide. Alternatively, you may also reach us through our digital channels: · Live Chat at maya.unifi.com.my or via MyUnifi app · Facebook at facebook.com/weareunifi · Twitter at @helpmeunifi
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