25 Aug 2023

TM Records Stronger 2Q 2023 Financial Performance; Sustaining the Group’s Growth Momentum

TM Records Stronger 2Q 2023 Financial Performance; Sustaining the Group’s Growth Momentum Article Header
TM

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

28 May 2024
Unifi Launches UniVerse, Presenting Its Best Convergence Offerings for Today’s Digital Customers

KUALA LUMPUR, 27 MAY 2024 – Unifi launches UniVerse, a suite of its best convergence offerings for home internet, mobile, entertainment and lifestyle solutions to meet the diverse needs of today’s digital customers. UniVerse enhances customer value, experience, and convenience by offering integrated fixed-mobile and fixed-content solutions that deliver great savings, unparalleled connectivity, and top-tier after-sales support. These innovative packages also incorporate Unifi's lifestyle solutions for smart home, smart devices, online gaming, and beyond. Anand Vijayan, TM’s Chief Business & Consumer Officer, said, “UniVerse is our most comprehensive suite of packages, integrating connectivity, entertainment, and lifestyle solutions for home, work and play. As the champion of convergence in Malaysia, these new offerings enable connected communities, reflecting TM’s aspiration to become a Digital Powerhouse by 2030, and advancing our nation towards its next digital evolution.” Unifi’s UniVerse Packages UniVerse brings together Unifi's award-winning connectivity, entertainment, and lifestyle solutions suited to the needs of diverse customers. Featuring 19 international streaming apps and 77 premium channels, Unifi TV is the largest platform for converged entertainment offerings in Malaysia. UniVerse’s lifestyle offerings encompass a diverse array of devices and smart home features, such as Smart Motion Sensors, Outdoor Security Wi-Fi Cameras and Smart Speakers, that provide immersive digital experiences at home and on-the-go. Ensuring excellent customer experience, Unifi will provide 24-hour service restoration, convenient Easy-Fix solutions and Proactive Service Alerts via the MyUnifi app, as well as hands-on support from the Unifi Elite Crew . Unifi was recently recognised with Ookla's Fastest Wi-Fi Provider in Malaysia award, and Open Signal's recognition of Unifi Mobile as the World's No.1 Fastest 5G Download Speed provider. Details of Unifi’s UniVerse Packages For individuals, UniVerse offers a limited-time promotion package of Unifi Home 300Mbps with UNI5G Postpaid 39, and a 24-month Netflix subscription on us, priced at RM169.00 (normal price at RM206.00). For families, UniVerse offers the most affordable entertainment package with Unifi Home 300Mbps and Unifi TV Family Pack, priced at RM159.00 (normal price at RM199.00). The package includes 77 premium channels and 6 streaming apps including Unifi TV, HBO GO, BBC Player, beIN SPORTS CONNECT, SPOTV NOW and SIAR. For tech-enthusiasts, UniVerse offers a Smart Home premium pack. This includes a full home surveillance plan with TP-Link Smart Hub with Chime, TP-Link Smart Motion Sensor, two TP-Link Smart Door/Window Sensors, TP-Link AI Home Security Wi-Fi Camera Premium, TP-Link Outdoor Security Wi-Fi Camera and Xiaomi Smart Speaker IR Control. Existing Unifi customers can elevate their experience by subscribing to the Unifi Smart Home package starting from RM16.00 on top of their current plans. Meanwhile, new customers can subscribe to this package with Unifi Home 300Mbps for RM159.00 (normal price at RM176.50). The package offers professional installation and 24/7 customer service support by Unifi’s Elite Crew. For more information, visit https://unifi.com.my

25 May 2021
TM successfully concludes its 36th Annual General Meeting; ‘new TM’ transformation journey on track

Amidst challenging environment, the Company remained resilient and paved its way forward with ‘New TM’ transformation to set the Company on a sustainable growth trajectory Telekom Malaysia Berhad Group of Companies (TM Group) today concluded its 36th Annual General Meeting (36th AGM) with all 12 Ordinary Resolutions tabled duly approved by its shareholders. The Meeting, conducted via online for the 2nd consecutive year in view of the Movement Control Order (MCO), saw virtual participation by more than 1,000 shareholders. Commenting on the proceedings, Tan Sri Dato' Seri Mohd Bakke Salleh, Chairman of TM said: "We are very pleased that TM once again was able to conduct its AGM virtually and engage with our shareholders without being physically present at the meeting venue. This reflects our commitment towards ensuring the safety and health of our shareholders as well as stakeholders by complying with the guidelines set by the Securities Commission Malaysia (SC), National Security Council (NSC) and Ministry of Health (MoH)." Also participating in the online AGM was Imri Mokhtar, Managing Director / Group Chief Executive Officer, TM as well as other members of the TM Board. Razidan Ghazalli, Group Chief Financial Officer, TM was also present. "Amidst the market and pandemic challenges, we remained resilient and recorded an improvement in our 2020 performance, as our cost optimisation initiatives continue to drive profitability. Building on current momentum, we have embarked on the next phase of our exciting journey with the 'New TM' Transformation Programme. Guided by our compass of Purpose, Customers, Performance and People, we will focus on Connectivity Excellence, Solutions Excellence and Customer Experience Excellence to set us apart from the competition," added Tan Sri Dato' Seri Bakke. The 'New TM' transformation is anchored on 40+ Value Programmes, driven by a dedicated Transformation Office; with a new cadence towards a higher execution tempo, which is already showing early traction. TM is also reshaping its workforce into a stronger execution engine, embracing a more agile work culture with future-ready skills. This will set TM on a sustainable growth trajectory, to create shareholder value and continuously enable a more Digital Malaysia. TM, in its role of enabling Digital Malaysia, is ready to support the Government's digitalisation agenda, particularly the Jalinan Digital Negara (JENDELA) and the comprehensive Malaysia Digital Economy Blueprint – MyDIGITAL as well as other Government's digital and stimulus plans, towards accelerating the socio-economic recovery and fast-track the nation into a technologically-advanced economy by 2030. TM is well positioned to play a significant role in MyDIGITAL – focusing on digital connectivity (fibre, 5G, international connectivity), digital infrastructure (Cloud, Data Centre and Cybersecurity) as well as digital skillsets and talents (via Multimedia University and TM Digital Academy). The Company was also appointed as the sole Malaysian Cloud Service Provider (CSP) under MyDIGITAL, at par with the other global players. TM believes that such public and private collaboration will propel the country towards a full-fledged Digital Malaysia by 2030 – a more digital society, digital business, digital industry and digital Government. Despite the MCO, TM was able to publish a fully Integrated Annual and Sustainability Report (IAR) for this year. The theme of this year's IAR is "Reach Further", a reflection of the ripple effect brought about by the report cover. The idea is to inspire Malaysians to go further in pursuing their dreams through Digital Malaysia, as reflected through the visuals in the separators of a Digital Society, Digital Businesses and Digital Government presented in the book. This theme and narrative are carried consistently from our report cover, separators and throughout the strategic narrative of the report. To read and download TM's IAR 2020, visit https://tm.com.my/investor-relations/financial-information/annual-reports.

24 Dec 2021
TM restores 85% of flood-impacted services and ramps up outreach to affected customers, communities and employees

​Following up from the statement issued by Telekom Malaysia Berhad (TM) on December 19, 2021, we have since accelerated our focus on supporting the escalating needs of our customers, communities and employees impacted by the tragic event of the floods. As of today, 85% or 84,274 of our affected customers are now back online thanks to the exhaustive efforts made by TM’s engineering and support teams, enabling the successful restoration of our core services. We will continue this rigorous service restoration exercise to ensure the remainder of our customers are able to be connected soonest. For our affected customers, we have allocated:     RM13 million to replace for free, damaged Customer Premise Equipment (CPE) and network components;     A waiver of two (2) weeks subscription from customer bill estimated at RM5 million; and     Credit term extension to 60 days to further ease the financial burden of customers. In the affected regions, TM has restored a majority of its impacted primary network sites. The flood had impacted more than 15 network sites and hill stations across four (4) states, due to power outages and in some areas, high water levels and severe road conditions, preventing our network team from accessing these locations. As part of the pledges made by members of the GLC/GLIC Disaster Response Network (GDRN) currently at RM58.4 million, the TM Board has allocated RM2 million in aid of the recovery, rebuilding and flood relief efforts. TM, via Yayasan TM (YTM) is also joint chair and secretariat for GDRN. Together with YTM, partner NGOs and the Malaysian Armed and rescue Forces, we have also distributed over 3,500 care packs consisting of hot meals, dry rations and hygiene items, and COVID-19 self-test kits provided by Pharmaniaga to the flood-stricken areas in Klang Valley and Hulu Langat. Our committed team of over 260 staff volunteers (TM Reaching Out Volunteers – TM ROVers) are currently assisting communities with the daunting task of cleaning up their homes, including 830 of our own employees whose premises have been damaged. TM will also ensure compensation via financial aid to the affected staffs, and the provision of temporary shelter at the MMU campus. Imri Mokhtar, Group Chief Executive Officer of TM said, “The immense challenges faced by fellow Malaysians during this unfortunate situation calls for corporations and businesses to come together to respond swiftly to alleviate the struggles of many, leveraging on our resources and means where possible.” “As co-lead of the GDRN, TM is grateful to serve alongside its members in addressing the needs of those trying to rebuild their lives in the aftermath. The worse may not be over, and TM is mindful of our role to support our customers, communities and employees as we recover as a nation.” “We appreciate the patience shown by all as we work hard to get our networks back up and running and ensure uninterrupted services in face of power shutdown and damaged equipment in some of our locations,” he added. TM will continue to play its aid and recovery efforts towards community wellbeing. More regular update is available on TM social media channels or visit our website https://unifi.com.my/unifi-alerts for updates.

NEWSLETTER

Just drop your details and stay updated with the world of Telekom Malaysia. We promise – no spam!​