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 R&D recognised at MDEC’s Inaugural Malaysia Digital Economy Industry Awards 2022
Acknowledgement for its support for the agency and contribution to the development of the digital ecosystem Telekom Research & Development Sdn Bhd (TM R&D), the innovation arm of Telekom Malaysia Berhad (TM) recently received the ‘Data Sharing Technology Excellence’ award in recognition of its contribution as a partner to the Malaysia Digital Economy Corporation (MDEC) in growing the data ecosystem in Malaysia. The recognition was given away at the inaugural Malaysia Digital Economy Industry Awards 2022 organised by MDEC, to show appreciation and recognise industry players who have been supporting the agency as well as contributing to the development of the digital ecosystem. Present to accept the award from Dato’ Seri Haji Mohammad Mentek, Secretary General of the Ministry of Communications and Multimedia, was Dr. Sharlene Thiagarajah, Chief Executive Officer of TM R&D. Commenting on the milestone achievement, Dr. Sharlene said, “This recognition reaffirms our efforts in developing digital ecosystems to facilitate Malaysians in embracing a more digital lifestyle. It is a proud moment for us at TM R&D and we look forward to continue working closely with MDEC and other agencies with similar aim, contributing our expertise to accelerate data technology adoption and facilitating talent development as well as industry-academic collaboration.” In 2020, TM R&D was appointed as MDEC’s Data Technology Partner under its Data Technology Partnership Programme. The appointment allows TM R&D to work hand-in-hand with MDEC and enterprises in multiple collaboration activities, leveraging on each other’s core expertise and capabilities to accelerate the adoption of data technology among businesses toward boosting Malaysia’s digital economy. TM R&D and MDEC also joined forces to launch a one-stop data exchange platform under MDEC’s #DigitalVsCovid initiative to facilitate and accelerate data sharing. The goal was to bolster research efforts in combating COVID-19. The development of the Data Exchange Platform was among the initiatives aimed at expediting access to data for developers, students, scientists and medical practitioners as well as government agencies. This will help them gather new insights easily on the pandemic and, eventually, pave the way for major breakthroughs. The Data Exchange Platform was built on TM R&D’s Open Innovation Platform (OIP), Malaysia’s first Open Software Development Platform. It consists of a data brokerage platform, an Application Programming Interface (API) store-front and an end-to-end (e2e) ecosystem for the rapid development of smarter 4th Industrial Revolution (IR4.0) services that enable the creation of new revenue opportunities. Established in 2001, TM R&D is the innovation arm of TM Group focusing on creating smarter ecosystems to make business and life easier for a better Malaysia. TM R&D’s solutions are clustered around four pillars namely Intelligent Platforms, Data Brokerage, Connectivity/Tools and IR4.0/Digital Solutions. Growing from strength to strength, TM R&D has won multiple global awards and generated more than 2,800 Intellectual Property Rights (IPRs) and 1,400 digital assets to date. TM R&D’s innovations are developed in-house and cut across multiple industries such as Utilities, Retail, Agriculture, Healthcare and Education, with safety and productivity as its top priority.
TM & TNB in collaboration to accelerate broadband reach for the nation
Both GLCs to capitalise on combined capabilities to ensure successful delivery of Nationwide Fiberisation Plan Telekom Malaysia Berhad (TM) and Tenaga Nasional Berhad (TNB) today signed a Memorandum of Understanding (MoU) to jointly develop an implementation plan to deliver on the Government's Nationwide Fiberisation Plan (NFP). This collaboration will capitalise on the combined strength of both Government-Linked Companies (GLCs) in terms of reach, infrastructure and expertise. In particular, the synergies will enable the most efficient cost structure, and further accelerate the fibre broadband network reach. This is in line with the Government's aspirations to drive Malaysia's Digital Economy; as envisioned under both the NFP as well as the High Speed Broadband (HSBB) projects. Further, the roll-out under TM and TNB, as two of Malaysia's leading institutions, ensures the safety and security of the nation's strategic and critical infrastructure. The proposed network will also continue the existing open access participation of industry players to promote private sector competition in retail broadband. The MoU was signed by Dato' Sri Mohammed Shazalli Ramly, Managing Director/ Group Chief Executive Officer of TM, and Datuk Seri Ir. Azman Mohd, President/ Chief Executive Officer of TNB. The MoU is subject to a definitive agreement to be signed between the parties upon finalisation of the commercial terms. Further announcements will be made in due course, as and when appropriate.
TM shines the spotlight on an unsung hero this Hari Kebangsaan through interactive 360º wayang kulit performance
Most of us are familiar with the many great gentlemen heroes who fought for the nation’s Independence, such as Tunku Abdul Rahman and Dato' Onn Jaafar. This year, however, Telekom Malaysia Berhad (TM) is shining the spotlight on one of the women “Tokoh Kemerdekaan”, Tan Sri Hajah Zainon Binti Sulaiman, also known as Ibu Zain, who played a pivotal role in inspiring Malaysians to unite and stand up as one. Her inspiring yet lesser-known story was captured in a Hari Kebangsaan and Hari Malaysia film titled “Ibu, Kisah Seorang Tokoh Kemerdekaan”, to celebrate the spirit of Malaysia’s independence and as an example of strength through unity. Aptly and equally inspiring too is that the film is narrated by her own daughter, Fadzilah Amin (Tok Lah), one of the most respected lecturers and educators in the country. The film is part of TM‘s Mengukir Malaysia initiative to celebrate and preserve our local culture through innovative technologies that enhances and elevates its delivery and enables Malaysians of all ages to better appreciate the richness of Malaysia’s heritage. Aimed at reconnecting people with the nation’s history and preserving the country’s rich heritage, TM brought to life the art of Wayang Kulit (shadow play), one of the earliest forms of animation in Southeast Asia, to tell the story of Ibu Zain. The project was born from one premise: ‘What if we could shine a light on a forgotten Malaysia hero through an art form that is also fading?’ Shanti Jusnita Johari, Chief Marketing Officer, TM, said, “Through our Mengukir Malaysia initiative, we aspire to leverage technologies that not only changes the way we live, work and play, but also enhances our perspectives and ideas, drawing from our local culture and history to remind us about what’s made us a great nation. “This Hari Kebangsaan and Hari Malaysia, we wanted to remember and celebrate Malaysia’s many unsung heroes, such as Ibu Zain, who made our country great. We hope that through this short film, people will be encouraged to learn more about this historical icon as we commemorate her legacy via Wayang Kulit, one of the first forms of storytelling by our ancestors which we must also preserve.” In ensuring that the film stays true to the ancient art of Wayang Kulit, TM found the perfect partner in Tintoy Chuo and his Tok Dalang from Fusion Wayang Kulit, who are renowned for their unique take on the art of Wayang Kulit. Their efforts to bring Wayang Kulit into the digital 21st century has garnered international attention, putting Malaysian Wayang Kulit on the world map. For this collaboration, TM and Tintoy Chuo weaved in virtual reality technology, bringing the Wayang Kulit experience to school children from across the nation’s 13 States. Sharing Ibu Zain’s story in a way that harmonised both heritage and digitalisation was one of the messages TM aimed to highlight about Malaysia’s unique make up and to celebrate both its history and aspirations during this Hari Kebangsaan. On top of the Hari Kebangsaan film, audiences can also visit www.tm.com.my/mengukirmalaysia to immerse themselves into the world of Wayang Kulit, Ibu Zain and TM‘s Mengukir Malaysia initiative through videos, a 360º interactive Wayang Kulit experience, behind the scene content and many more. Fans of Wayang Kulit can also visit TM‘s social media pages to use the Wayang Kulit filters and be part of the show.