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 INKS AGREEMENT WITH MALAYSIAN GOVERNMENT TO DELIVER NATION’S NEXT GENERATION EMERGENCY SERVICES 999 (NG999)
KUALA LUMPUR, 1 JULY 2024 – TM and the Government of Malaysia today signed an agreement to develop and operate the nation’s new emergency response system, the Next Generation Emergency Services 999 (NG999). This will serve as a replacement for the existing MERS999. Witnessed by Deputy Minister of Communications, YB Teo Nie Ching, the agreement was signed by the Secretary General of the Ministry of Communications, Datuk Mohamad Fauzi Md Isa and TM One's Executive Vice President, Shazurawati Abd Karim. Also in attendance was TM’s Group Chief Executive Officer (“Group CEO”) Amar Huzaimi Md Deris. NG999 is an integrated strategic digital system that will enhance the sharing of resources and data between emergency responders and relevant central agencies. The new system will integrate web-based digital maps, caller IDs, geolocation services and mobile smart apps into emergency incident handling, helping to improve emergency response time nationwide. Amar Huzaimi Md Deris, TM’s Group CEO said, “TM is honoured to be given opportunity to continue as the trusted partner by the Malaysian Government, advocating the success of Malaysia’s emergency services. NG999 is an initiative to upgrade the existing MERS999, delivering more efficient and swifter emergency responses in the future. “TM’s comprehensive role will cover network and platform infrastructure, call management, and other support services, allowing us to provide continuous efficacy to the public and emergency responders. This opportunity to revitalise our emergency services is another milestone in TM’s commitment towards Digital Malaysia by leveraging the advancement of AI, reflecting our aspiration to become a Digital Powerhouse by 2030.” Malaysia’s emergency responses have transformed significantly driven by the growing use of mobile and smart devices. The implementation of Malaysia’s world class NG999 system follows the latest international best practices such as the European Emergency Number Association’s NG112 and the National Emergency Number Association’s NG911 in North America. NG999 will also leverage advanced technologies including data analytics and AI to deliver swifter and more effective emergency responses. This ensures that in critical moments, emergency responders can make every second count. Tapping into the experiences of various Government and law enforcement agencies, emergency dispatchers and TM, the enhancement to the nation’s emergency call services is not just a technology upgrade but a reaffirmation of TM’s commitment to serve the nation. Aligning with the country’s increasing mobile usage, TM will introduce a new mobile app for NG999 that enables updates through text, photos and videos for registered users. This will enhance communications between callers and emergency responders, helping the latter in their tactical deployment.
TM Future Skills Programme continues with a project based learning e-showcase event
Two (2) schools participated in E-Showcase PBL-TM Future Skills 2020, the highlight of a 3-month online learning programme for teachers and students of the schools Telekom Malaysia Berhad (TM) continues its efforts to equip the younger generation with Industrial Revolution 4.0 (IR4.0)-centric knowledge through initiatives under its TM Future Skills programme. Most recently, students from Sekolah Jenis Kebangsaan Cina (SJKC) Jalan Davidson, Kuala Lumpur and SJKC Tsun Jin, Kuala Lumpur demonstrated their talents in 3D programming and printing skills in a two (2)-days online event held in collaboration with Bangsar / Pudu District Education Office (PPDBP). The event, titled E-Showcase Project Based Learning (PBL)-TM Future Skills 2020, saw the participation of 60 teachers and students from both schools. The students showcased their 3D innovation projects and at the same time, shared and displayed their knowledge and skills in Science, Technology, Engineering and Mathematics (STEM) subjects. Izlyn Ramli, Vice President, Group Brand and Communication, TM, said: “We are delighted with the schools’ acceptance and active participation in the TM Future Skills Programme. Our Corporate Social Responsibility (CSR) programmes under the education pillar are always aimed at supporting the nation’s education system towards preparing not only the students, but also the teachers and society at large, with IR4.0 skills. We hope this programme will help to enhance the students' future skills and increase their interest in STEM subjects. This befits our role as a responsible nation builder where we will continue to serve and enable Digital Malaysia through innovative and inclusive digital solutions.” Teah Lay Theng, Headmistress of SJKC Jalan Davidson, said: “The PBL approach was chosen for the programme as it can bring out the most from the students in terms of innovation and creativity. The use of digital equipment is also able to improve the digital skills and competencies of our students in producing the innovations.” Meanwhile, Ng Mooi Hong, Headmistress of SJKC Tsun Jin, said: “In the current pandemic environment, teachers need to be creative in imparting knowledge and running the programmes that can develop the potential of our students. With this programme, we hope to inoculate the interest, highlight the potentials and empower the students with STEM subjects.” The E-Showcase PBL-TM Future Skills 2020 was the highlight of three (3) months long online learning programme for teachers and students of the two (2) schools. Throughout the programme, the teachers and students from both schools learned about digital technology in TM 3Ducation – the 3D printing module to be implemented in their PBL. Due to the ongoing pandemic Covid-19, TM’s strategic partner for TM Future Skills, Creative Minds, conducted the training sessions for all the teachers and students, including parents, through an online platform. Not being in class physically following the closure of schools nationwide has also not deterred these young innovators. They persevered in conducting research and continued to experiment and collaborated with each other virtually for the past 3 months. At the same time, School Improvement Specialist Coach (SISC+) from PPDBP closely supervised the activities and monitored the progress of the participants. Streamed live via YouTube, the E-Showcase garnered more than 6,000 viewers throughout the 2-day event and the channel has cumulated more than 7,800 views to date. The panel of judges for the E-Showcase consisted of SISC+ from PPDBP and led by Izad Ismail, Head of Corporate Responsibility, TM. TM Future Skills programme is an initiative that aims to empower students by equipping them and teachers with IR4.0-centric kits and knowledge, such as the TM 3Ducation – 3D printing module and the TM Nano Maker, a real-time data logging tool for STEM. This is to prepare them to be part of a digital-ready community and future-proof workforce which has always been one of the pillars under TM’s Digital Malaysia aspiration. As a key enabler of this, TM has always been an avid supporter of innovation and technology in Education. Through programmes like TM Future Skills, the Company endeavours 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. For more information on the Company's other Corporate Responsibility initiatives, visit www.tm.com.my.
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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