25 Aug 2023
TM Records Stronger 2Q 2023 Financial Performance; Sustaining the Group’s Growth Momentum
KUALA LUMPUR, 25 August 2023 – Telekom Malaysia Berhad (“TM” or “the Group”) recorded a stronger financial performance in the second quarter of the year that ended 30 June 2023, compared to the same period in the previous year.
Its operating revenue grew 0.3% to RM3.10 billion, propelled by Unifi’s expansion which saw a substantial increase to 3.11 million fixed broadband subscribers. The growth was also due to TM Global’s solid 10.0% revenue growth driven by higher demand for domestic and international data services.
Profit After Tax and Non-Controlling Interest (PATAMI) rose 50.4% from RM378.0 million to RM568.7 million due to lower net finance cost and the recognition of tax credits from unutilised tax losses.
TM’s Capital Expenditure (CAPEX) allocation for the first half of 2023 stood at RM942.8 million, which accounts for 15.6% of the overall revenue for the expansion of network infrastructure to enhance nationwide coverage.
Meanwhile, Earnings Before Interest and Tax (EBIT) was lower by 10.3% at RM630.0 million from RM702.7 million, due to higher preventive maintenance costs to better serve our customers and higher depreciation from revision of asset useful life.
TM declared a higher Interim Dividend of 9.5 sen per share. This is a testament of the Group’s positive financial performance and its ongoing commitment to shareholder value.
Commenting on these results, Amar Huzaimi Md Deris, TM’s Group Chief Executive Officer said, “We are pleased with this quarter’s performance, which is marked by overall positive results across our Lines of Business (“LOBs”). These achievements further strengthen TM’s growth momentum in facing a more competitive market.”
“In the coming months, TM expects to face a more challenging marketplace but remains confident in our overall positive financial performance. The Group remains steadfast to continue strengthening its core business to be commercially sustainable whilst also continuing to contribute to the nation’s growth.
“TM is excited by the huge potential of fixed, mobile and lifestyle convergence in the digital market, as well as digital infrastructure and solutions for MSME, enterprise and government sectors, whilst pursuing to capture opportunities from International partners including hyperscalers.
“We also remain committed to continuously invest in expanding our network to enable the nation’s progress towards a Digital Malaysia. TM will continue to collaborate closely with the Government to serve as the nation’s trusted partner to grow Malaysia’s overall connectivity and digital ecosystem, including 5G,” Amar concluded.
LINES OF BUSINESS PERFORMANCE
Unifi drives growth with enhanced services and market leadership
Unifi’s revenue increased 0.5% to RM1.41 billion, driven by growth in fixed broadband subscribers reaching 3.11 million from consumer and Micro Small & Medium Enterprises (“MSME”) segments.
Reinforcing its market leadership in fibre broadband services, Unifi unveiled its Ultra Gigabit Broadband Plans with 1Gbps and 2Gbps packages designed to empower digital households and expedite the growth of MSMEs.
Unifi also strengthened its position by introducing innovative Uni5G postpaid and prepaid all-in-one 4G and 5G mobile plans, enhancing its fixed-mobile convergence value proposition.
Unifi’s lifestyle services arm, Unifi TV, continued its pursuit of enriching user experiences by integrating popular streaming apps such as Netflix into its diverse portfolio. This move bolsters Unifi TV’s value proposition and adds to the variety of content available to users.
The availability of a comprehensive convergence proposition encompassing gigabit fixed broadband, innovative 5G mobile packages and lifestyle services is the only offering of its kind in the industry. This is delivered over the best fibre network, superior 4G network coverage and expanding 5G nationwide footprint that offers elevated connectivity experiences at home and on-the-go.
As a market leader, Unifi Business launched its Digital Marketing Solution (“DMS”) to encourage the MSME segment develop stronger brand presence and online visibility. As the latest addition to its line-up of connectivity and business solutions, DMS complements and augments Unifi Business’ existing offerings and will propel digital adoption among businesses.
Earning further accolades, Unifi Business received the “Best Business Fixed Broadband Service Provider” award from PC.com during the period under review.
TM One Drives Innovation with Smart Solutions and Private 5G Advancements
TM One experience a decline in revenue by 11.4% to RM732.0 million in 2Q 2023 as a result of price reductions in connectivity services and lower one-off revenue from customer projects.
To mitigate this, TM One is driving the rapid development of smart innovative solutions for verticals such as smart cities, healthcare, agriculture and industries. As a trusted digital partner for large enterprises and government, TM One is also leading Private 5G propositions and solutions across diverse industries spanning across oil & gas, transportation hubs and manufacturing to drive the country’s advancement.
As the largest local cloud provider, TM Cloud Alpha remains the preferred local sovereign hyper-scaled cloud for data residency and locality in Malaysia.
It has also reinforced its role in shaping Malaysia’s modern urban landscapes by being the strategic partner for smart city low-carbon initiatives with local councils. Along with its growing local and global partnerships, it has been appointed to implement and support various digital transformation programmes for its customers.
In recognition of its industry excellence across a suite of end-to-end next generation business solutions, TM One received the accolade for "Best Enterprise Telco" from PC.com.
TM Global on track to make Malaysia the preferred digital hub for ASEAN
TM Global recorded a 10.0% solid revenue growth from RM739.9 million to RM813.6 million, contributed by higher demand for both domestic and international data services.
TM Global remains steadfast in solidifying its stature as Malaysia’s preferred network infrastructure provider, catalysing digital industry and 4G/5G ecosystem while simultaneously positioning the country to become a digital hub for ASEAN.
TM Global continues to deploy its 4G/5G fibre backhaul rollout and drive greater demand for High Speed Broadband Access (HSBA) ports, reinforcing its commitment to support the Government’s aspirations for digital inclusivity in the country.
Beyond borders, TM Global has reinforced its position by enriching the platform play services via strategic collaborations with partners on A2P SMS Gateway in Philippines and Content Delivery Network (CDN) Last Mile Delivery in Thailand.
Additionally, TM Global continued to cater to mega bandwidth requirements with dynamic and customised solutions for hyper-scalers as well as global service providers, cementing its significance on the international stage.
YOU MAY ALSO LIKE
TM Announces Upcoming Change In Chairmanship
Telekom Malaysia Berhad (TM), is pleased to announce the appointment of Dato’ Zainal Abidin Putih as its new chairman effective 1 August 2023. He will succeed Tan Sri Azlan Hashim, who completes his 2-year term on 31 July 2023. Dato' Zainal Abidin brings a wealth of experience and distinguished track record in the corporate sector. He is currently Chairman of Financial Reporting Foundation (FRF), Land and General Berhad, Touch 'n Go Sdn Bhd and Tokio Marine lnsurans (Malaysia) Bhd, as well as Board Member of Khazanah Nasional Berhad and several private limited companies. He has also previously served as Chairman of Pengurusan Danaharta Nasional Berhad, CIMB Bank Berhad, Malaysian Accounting Standards Board (MASB) and President of Malaysian Institute of Certified Public Accountants (MICPA). As Chairman, Dato' Zainal Abidin will be responsible for overseeing the overall governance and strategic direction of TM. He will work closely with the Board of Directors and management team to drive TM's next wave of growth and strengthen its market position. Tan Sri Azlan, who shall complete his term as Chairman on 31 July 2023, expressed his confidence in the appointment of Dato' Zainal Abidin and stated, "I am delighted to hand over the reins to Dato' Zainal Abidin. His extensive experience and deep understanding of the corporate sector make him the ideal candidate to lead TM into its next phase of growth. I have full confidence in his ability to guide the company towards greater achievements and new horizons." Dato' Zainal Abidin expressed his gratitude for the opportunity and said, "I am honored to assume the role of Chairman of TM. I am excited to build upon the strong foundation laid by Tan Sri Azlan and work together with the Board and management team to create new opportunities and achieve even greater heights. It is an exciting time to be joining TM, especially as we build on the company's recent successes." TM extends its appreciation to Tan Sri Azlan Hashim for his invaluable contributions, dedication, and leadership during his tenure as Chairman. His vision and strategic guidance have played a pivotal role in the company's recent growth and success.
TM lauds the government’s national recovery plan; stays committed to serve customers
Telekom Malaysia Bhd (TM) lauds the Government on the announcement of the National Recovery Plan which outlines the four-phase exit strategy and conditions for Malaysia to overcome the socio-economic impact of the COVID-19 pandemic. TM is fully supportive of the recovery plan that is anchored on three conditions – the number of daily cases reported, the medical healthcare capacity (ICU) and the national vaccination rate. Commenting on the announcement, Imri Mokhtar, Managing Director and Group Chief Executive Officer, TM said: "We welcome the clarity provided by the Government on the National Recovery Plan. It is indeed a necessary response to the serious economic and social impact of the coronavirus pandemic. We hope that through the effective implementation of this plan, the nation will be able to emerge from the COVID-19 pandemic to a reasonable level of normality by year end, revive the economy and place the country on a new growth trajectory." "TM as an essential services provider continues to ensure Malaysians remain connected in the safety of their homes and that all our customer support services remain in operation throughout each phase of the recovery plan. As the enabler of Digital Malaysia, TM is committed to playing our part to support all our customer segments across homes, businesses, industry as well as the public sector with connectivity and digital infrastructure and solutions towards economic recovery. All of us at TM pray for the safety and health of all Malaysians nationwide; stay safe and ensure that we get vaccinated - together may we return stronger," he concluded. TM is taking proactive measures in its operations to ensure homes and businesses stay connected; strictly adhering to the Standard Operating Procedures (SOPs) and guidelines set by the National Security Council (MKN). TMpoint outlets and key partner stores are open for service applications and essential transactions subject to government and local authority regulations. Service installation and restoration activities remain available for customers with SOPs in place to ensure the safety of both TM personnel and its customers. TM customer care lines remain open. Additionally, customers are encouraged to utilise our 24/7 self-serve digital platforms for service registration, service diagnostics, account-related enquiries as well as payment. TM supports the National Immunisation Programme and encourages Malaysians to register for vaccination to ensure the country can achieve herd immunity. TM also runs its own internal vaccination drive and thus far, 65% of Warga TM has registered. TM will also be running an internal campaign to rally its TM Volunteers by participating in the Malaysia Vaccine Support Volunteers (MyVAC) programme for The Special Committee On COVID-19 Vaccine Supply (JKJAV) to assist with the vaccination process at Vaccine Delivery Center (PPV) locations across the country. TM is also offering its suitable venues nationwide for PPV, drive through and mobile unit stations. Today, its Multimedia University Melaka campus begins its operations as a PPV facility for JKJAV. TM also connects PPVs nationwide with internet access services to enable the frontliners, medical teams, volunteers as well as members of the public to stay connected during the vaccination process. More than RM8.0 million has been channeled for nation building initiatives to date; in terms of medical and non-medical humanitarian aid for communities in need during the pandemic. Most recently, TM has also set up Tabung Solidarity COVID-19 TM as a continuation of the employee donation drive last year, which has already raised and disbursed RM800,000 to various causes. Thus far, TM Board members and Warga TM have pledged another RM600,000 for the fund through voluntary salary and allowance deduction. The contribution is matched by the company to total RM1.2 million to date. The donation will be channelled to the government's Akaun Amanah Bencana. TM also continues to support the nation and communities in need through connectivity initiatives such as Jaringan Prihatin, CERDIK and MYBAIKHATI. TM reiterates its commitment to ensure the safety and health of customers and Warga TM with special working arrangements implemented and enhanced SOPs towards business and customer service continuity. The Company will continually monitor for developments on the ongoing situation, adhere to the SOPs under the specific phases detailed out by MKN and adapt its services to help customers, whenever needed as the safety of its employees and members of the public are of paramount importance.
TM One Smart Healthcare solutions to enhance digital patient experience at Ramsay Sime Darby Health Care
Malaysia’s first healthcare provider to leverage TM One Smart Patient Suite solution TM One, the enterprise and government sector solutions arm of Telekom Malaysia Berhad (TM), today inked a Memorandum of Understanding (MoU) with Ramsay Sime Darby Health Care (“RSDH”) to collaborate on Smart Healthcare and other business solutions for the RSDH group of hospitals. The MoU was signed by Shazurawati Abd Karim, Executive Vice President of TM One, and Peter Hong, Group Chief Executive Officer, RSDH. Aimed at improving patient experience and enabling innovative transformation for essential in-patient services, the collaboration marks the first in Malaysia to leverage TM One’s Smart Patient Suite solution, by harnessing the power of the Internet of Things (IoT) to provide automation and surround control. Shazurawati Abd Karim, Executive Vice President, TM One said, “We are honoured to be working with RSDH to serve as the enabler of their next advantage today and tomorrow, bringing Malaysian healthcare and digital progress for all. TM One’s Smart Patient Suite, under its Smart Healthcare solutions, enables users to customise their in-patient environment for a more positive patient care experience.” Peter Hong, Group Chief Executive Officer, RSDH, said, "We are pleased to mark a milestone with this collaboration, as ParkCity Medical Centre will be the first hospital under the Group to pilot TM One’s Smart Patient Suite solution. Given the evolving nature of the healthcare system, we strive to continuously offer solutions that will elevate our patients' experiences by accommodating their needs through the adaptation of digital technology. Backed by TM One’s comprehensive digital support, we are confident that this will contribute to driving the evolution of Malaysia’s healthcare ecosystem moving forward.” TM One is also looking into the co-creation of smart solutions that will offer predictive and preventive intervention, as well as improve monitoring and medication adherence. Wellness wearables, for example, will allow high-risk patients who have received care at medical facilities to transition as outpatients quicker and continue self-monitoring in the comfort of their homes, with healthcare professionals leveraging real-time analytics for patient care administration. “Technology is reshaping the relationship between patients, healthcare providers, and the healthcare system, enabling us to move towards patient-centric, prevention-focused and outcome-driven healthcare. The Internet of Medical Things (IoMT), will empower healthcare providers with data and analytics to improve the quality of patient care while maximising operational efficiency,” added Shazurawati. This two-year collaboration with RSDH follows the launch of TM One’s Sphere Programme, which brings together Malaysia’s leading technology and smart solution partners to create an ecosystem that will help springboard enterprise and government sector innovative transformation. Since its launch in October 2022, the alliance has registered close to 50 partners. “At TM One, we look forward to collaborating with partners to offer innovative healthcare solutions to the public. The digital transformation of enterprises and the government sector will change the way they serve today’s digitally-enabled customers and communities,” Shazurawati concluded.
NEWSLETTER
Just drop your details and stay updated with the world of Telekom Malaysia. We promise – no spam!