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.
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TM takes a bold step in the enterprise business: hires key senior tech leader from the region Krish Datta as EVP into the leadership team for enterprise digital business: watch out what is happening next
Telekom Malaysia Berhad (TM) announced the appointment of Krish Datta, an established regional technology leader, as Executive Vice President of Digital Services. Krish brings deep expertise in building technology businesses from infancy to regional leadership alongside a broad, diverse set of experiences and skills to the newly created role. “I am delighted Krish has joined TM. He is a proven technology executive who has been instrumental in building and leading technology companies,” said Imri Mokhtar, Group CEO of TM. “In this new role, Krish will deepen our commitment and ability to enable our Enterprise and Public Sector customers’ digital transformation as we help them improve and accelerate every area of their business with simplicity and confidence. “While our focus remains on our core business, we have charted big, bold moves for the future as TM continues on our growth path. Our foray into enterprise digital services will open up new opportunities for TM to expand our customer base. More importantly, it will also enable us to better serve our existing customers by offering them solutions that will boost their business performance and at the same time, provide data-driven insights to make critical business decisions. “Krish at the helm of our new digital services arm marks the start of an exciting new chapter for us. As our customers in the Enterprise and Public Sector space continue to build the future of business, he will help TM realise our opportunities in B2B digital services. I am excited to see what Krish and his team will deliver!” “I am excited to join TM, for more than one reason.” said Krish Datta. “I love building sustainable tech businesses, and this opportunity to build a technology-focused team offers me the ability to create, from the inside, another reliable TM brand, a new identity for Enterprise Technology along with a scope to help a country I love.” With over 34 years of technology industry experience, Krish has built and led several enterprise technology-based businesses across ASEAN, India, Japan, Australia, and the Middle East. He is a passionate business and people leader who has demonstrated a successful track record in Asia with well-established global MNCs and start-up companies. Krish was in SAP Asia Pacific for over 16 years holding various leadership positions. He established SAP in Indonesia, Philippines, Vietnam and went on to hold the position of President, SAP Southeast Asia, responsible for all aspects of the business from sales, marketing, sales operations, presales, partner and eco-system, finance, support, HR, and consulting. Upon leaving SAP in 2011, he started a Goldman Sachs-backed data management services and software provider, Back Office Associates (now known as Syniti) in Asia Pacific, Japan, and Middle East region as its CEO. He went on to build the business over the next eight years and exited after building a manicured business, including key technology and delivery capabilities which included global delivery centres in India, Philippines, and P&L across nine countries. He became the Co-Founder and Chief Executive Officer of Xampr which started a no-code low-code mobile platform for mobile application development, focusing on integration, last-mile process and flexible template-based workflow and adoption. An art lover he also founded online art platform Mayinart. Krish holds an MBA in Marketing and Strategy from the European Business School, University of Surrey, UK and a First-class Honours Degree in Applied Physics/Classical Physics from the University of Calcutta, India. He has also completed the Global Leadership Development Program from INSEAD, France.
Statement from TM on Government's decision to retain Single Wholesale Network (SWN) for 5G
1. TM welcomes and supports the Government's decision to continue with the Single Wholesale Network (SWN) model for the deployment of 5G in the country. We believe this reflects the national aspiration for an inclusive digital Malaysia. 2. The SWN model reflects the shared responsibility to meet the collective objectives of 5G for Malaysia: Telcos to focus on investing and developing innovative 5G products and solutions for end customers. DNB shall focus on network-build towards faster rollout of coverage and capacity in a cost efficient manner. TM will continue to provide the fiber backhaul as committed in the signing of the agreement with DNB on 16 Dec 2021. This is another example of public-private partnership in the rollout of critical telecommunications infrastructure to boost economic development and enhance the well-being of Keluarga Malaysia. 3. We look forward to rolling out 5G-enabled products and solutions to our unifi and TM ONE customers. As such, we are currently undertaking internal customer and network trials to bring an improved convergence proposition of fiber plus 5G services to our unifi and TM ONE customers. This is subject to finalising our wholesale agreement with the DNB.
TM and Huawei collaborate to accelerate 5G commercialisation in Malaysia
Both parties exploring a working mechanism to cover spectrum, business case, ecosystem and key technologies towards empowering Digital Malaysia. Telekom Malaysia Berhad (TM) and Huawei Technologies (M) Sdn Bhd (Huawei) have recently signed a Memorandum of Understanding (MoU) to collaborate in accelerating 5G commercialisation in Malaysia as the country moves towards a Digital Nation. The MoU was signed by both companies at TM-Huawei Tech Summit held recently. Ir. Ts Azizi A. Hadi, Chief Network Officer, TM signed the MoU on behalf of TM while Mr. Zac Chow, Vice President Huawei Malaysia, represented Huawei at the signing ceremony. Commenting on the collaboration, Dato' Noor Kamarul Anuar, Group Chief Executive Officer, TM said, "It is an exciting development for us to collaborate with a global player like Huawei to accelerate the offering of 5G services to Malaysians. As a national telecommunications infrastructure provider of Malaysia's Digital Nation aspirations, 5G technology will complement our existing wired-based offerings, world class connectivity as well as digital infrastructure. It will enable us to deliver more innovative digital solutions to all our customers across various segments. TM via its innovative and comprehensive products and solutions will continue to lay the foundation for Industrial Revolution 4.0 and rolling out 5G nationwide - serving a more digital society and lifestyle, digital businesses and industry verticals, as well as digital Government. This collaboration augurs well for the accelerated deployment of future 5G network, applications and solutions for Malaysian homes, businesses and beyond, in line with our aspiration to power Digital Malaysia." Meanwhile, Michael Yuan, Chief Executive Officer of Huawei said: "TM and Huawei have been working hand-in-hand for 15 years. We have been working together to connect more people than ever before. We are now at the crossroads of digital transformation. Huawei will fully support TM's aspiration to power Digital Malaysia, and will work together with TM to building a better connected and intelligent Malaysia via 5G." Under the MoU, both parties intend to explore on collaborating by leveraging on each other's core expertise and capabilities to explore a working mechanism covering spectrum, business case, ecosystem and key technologies. This would include collaborating for a joint study on 5G spectrum and its evolution; possible joint development of new services concepts and business case of selected 5G use cases which include but not limited to Fixed Wireless Access (FWA), Smart Cities and Vehicle-to-Vehicle or Vehicle-to-Infrastructure (V2X); joint study in the areas of 5G Ecosystem Innovation; and explore future cooperation on full-fledged 5G end-to-end system. Through this collaboration, a joint working group will also be set up to identify areas of copper line services with the aim towards improving customer experience through FWA technology and/or services. "With this collaboration, we further strengthen our role as a national telecommunications infrastructure provider of Malaysia's Digital Nation aspirations, where TM has established the communications backbone of Malaysia with the widest connectivity and convergence network. As a responsible nation-builder, we will continue to serve as a strategic enabler of the National Fiberisation and Connectivity Plan (NFCP), backed by our solid infrastructure towards empowering Digital Malaysia" Dato' Noor Kamarul Anuar concluded.
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