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 Announces Upcoming Change In MD / Group CEO
Telekom Malaysia Berhad (TM), is pleased to announce a change in its executive leadership effective 1 August 2023. The change sees Amar Huzaimi Md Deris as the new Managing Director / Group CEO of TM, succeeding Datuk Imri Mokhtar, who completes his 3-year term on 31 July 2023. Currently heading TM's domestic and global wholesale business, Amar is another example of TM's home-grown talent, after Datuk Imri. Beginning his career with TM after graduating in 1998, Amar’s roles have ranged from financial control, internal audit, corporate and regulatory affairs, Group CEO’s office, culminating in his current P&L position at TM Global. His strategic vision, combined with operational experience and grasp of global leading technologies, ideally positions him to steer TM's evolution from a Telco to a TechCo. His achievements have not gone unnoticed, as evidenced by his recognition as one of CPA Australia's 40 young business leaders (2012) and by Capacity Media's 'Power 100' list in wholesale carrier community (2019, 2023). These accolades further attest to his leadership capabilities and the promising future he holds at the helm of TM. Speaking about his upcoming role, Amar said, "Datuk Imri has set the right path for TM, with the strengthened foundation from the turnaround and pursuit of new growth areas – charting the shift from a Telco to a TechCo. I am proud to have been part of that journey; and now, I am enthusiastic to follow through and lead TM to the next level." Datuk Imri expressed his confidence in Amar’s appointment, saying, “Amar is an exceptional TM-grown leader with a proven ability to navigate the business and deliver results. I have full confidence that TM shall attain greater success under Amar’s leadership. I extend my best wishes to Amar, the leadership team and Warga TM as they embark on the next chapter of TM’s growth journey.” The company wishes to extend its gratitude to Datuk Imri for his tenure as MD/GCEO which has seen notable turnaround and growth, and his total of 21 years serving in TM. With the appointment of Amar Huzaimi as the new MD/GCEO, TM is confident it will continue to innovate and grow, building upon its success and further enhancing its role as the enabler of Digital Malaysia.
TM PLEDGES RM4 MILLION FOR FLOOD RELIEF AND RECOVERY EFFORTS
KUALA LUMPUR, 16 December 2024 – TM announced at least RM4 million allocation, including cash assistance, to support immediate flood relief efforts for affected customers, communities, and employees nationwide. This is in support of the Sumbangan Ihsan MADANI initiative, aimed at ensuring timely support for those in need. TM installed complimentary Wi-Fi services at various flood relief centres (PPS) to ensure uninterrupted communication for flood victims and PPS’ administration. At the same time, TM’s network restoration team is working tirelessly to restore services for customers impacted by the recent monsoon flood especially in the East Coast region. This involves efforts to immediately divert key network elements for infrastructure that have been destroyed by the flood to minimise service downtime for the Government, enterprises and consumers. TM understands the challenges faced by the flood victims. Therefore, to ease their hardship, TM is committed to provide additional supports for the affected Unifi Home customers which include: • Free replacement of damaged Customer Premise Equipment (CPE) and network components, • A one (1) month subscription rebate for affected customers, and • An extension of credit terms to 60 days without service suspension. Through its social impact foundation, Yayasan TM (YTM) mobilised medical aid, food and other necessities with the support of its social impact partners. As Co-Secretariat and a member of the GLC/GLIC Disaster Response Network (GDRN) coalition, YTM assisted over 18,400 individuals via various initiatives including the MOF-GDRN Bantu Fund, to assist affected communities. Amar Huzaimi Md Deris, Group Chief Executive Officer of TM, emphasised the company’s dedication during this time of need. “We stand in solidarity with our customers, communities, and employees during these challenging times. Beyond restoring connectivity, our focus is on providing meaningful assistance to those affected, ensuring they can rebuild their lives with greater resilience. “We deeply appreciate the patience and understanding of our customers as we work to restore our networks, despite challenges due to power outages and damaged equipment in certain locations. Rest assured, our dedicated teams are fully committed to resolve these as swiftly as possible. To bolster our efforts, we have deployed the 56 Rejimen Semboyan Pakar Telekom Askar Wataniah, a team of TM volunteers, to provide on-ground assistance, deliver emergency services, and expedite restoration works. “TM is grateful to serve alongside the Ministry of Communications, Malaysian Communications and Multimedia Commission (MCMC), National Disaster Management Agency (NADMA), Malaysia Civil Defence Force (APM) and GDRN members in supporting collective efforts to assist communities in need. We extend our heartfelt thanks to these agencies and social impact partners for their dedication and collaboration in ensuring timely and effective support. “Through these partnerships, we supported more than 28,000 individuals via various disaster relief and preparedness programmes, ensuring faster distribution of aid across the country. We remain steadfast in our efforts to restore connectivity and essential telecommunications services and aiding recovery for those affected by the floods," concluded Amar. Earlier last week, Amar visited flood-affected areas in Kelantan and Terengganu, including the Central Disaster Operations Control Centre (PKOB) in Kota Bharu. During his visit, he handed over additional care packages to be stored at the control centre. These care packages will be mobilised to affected areas and distributed to the flood victims as needed. In support of its employees, TM launched an internal crowdfunding initiative to help provide affected Warga TM with essential home amenities, ensuring they could resume their daily lives as quickly as possible. This initiative aligns with TM's "Ini Cara Kita" culture statement, embodying the spirit of caring and togetherness. Additionally, TM extended financial aid to 131 Warga TM whose homes were damaged by the floods. Early flood aid and damage claims have already been disbursed, with further assistance underway. The company urges everyone to prioritise safety during this challenging season and remains committed to restoring essential services and aiding long-term recovery.
Innovating Malaysia's healthcare through 5G and digital solutions
TM One’s 5G and digital infrastructure reflects its commitment to enable smart hospitals and remote care capabilities TM One, the enterprise and public sector business solutions arm of Telekom Malaysia Berhad (TM) recently previewed the innovative future of Malaysia’s healthcare sector, powered by 5G technology and digital solutions. Collaborating with Siemens Healthineers Malaysia, TM One shared its vision at the inaugural 5G in Healthcare Symposium, organised by the Association of Private Hospitals Malaysia (APHM), where they showcased next-level innovations for the healthcare system, made possible by 5G connectivity. This gathering of healthcare providers highlighted the multiple benefits gained from digital transformation in the sector, including enhanced patient care and operational efficiencies, among others. The digitalisation of this essential sector has also proven to be particularly timely and effective in delivering health care during and post pandemic. Shazurawati Abd Karim, Executive Vice President of TM One explained the significance of 5G to Malaysian healthcare, stating that: “5G will positively impact the Internet of Medical Things (IoMT), and enable life-saving medical innovations that reflect the needs of a post pandemic society. This includes remote medical learning and remote patient monitoring, among others. Together with our partners, which includes global technology companies as well as leading local companies, we are primed and ready to help Malaysia’s private hospitals co-create solutions that will save lives and bring value to their stakeholders.” “Aside from real-time speed and breakthrough connectivity, today’s digital healthcare ecosystems depend on robust and secure infrastructure essentials. Collecting and sharing of digital patient records and hospital data requires world-class data security to mitigate cyber threats and to comply with stringent regulatory requirements. TM One’s services can be integrated with private 5G networks and offers enhanced data protection and encryption to safeguard both patients and hospitals. This will encourage patients towards adopting digital healthcare services, potentially enabling them to seek treatment earlier and save lives,” she said. Amongst the technologies demonstrated was VRAR (virtual reality/augmented reality) using a Microsoft HoloLens device, which utilises mixed-reality experiences with 3D data processing, analytics, visualisation, and simulation applications. This technology aims to humanise the diagnosis and treatment identification process and will improve the productivity of healthcare personnel by accelerating their time-to-diagnosis, surgical accuracy and reduce time-to-care which will result in improving overall patient experience. TM One also showcased a virtual medical consultation solution powered by REMEDi, a digital healthcare technology developer. Through high-speed, low-latency 5G, the solution will provide enhanced video images and sound quality for safer diagnosis of patients and effective troubleshooting. In addition, this solution can be conveniently deployed anywhere, matching the current shift towards online examinations and telemedicine. Speaking about the event, Datuk Dr Kuljit Singh, President of APHM said, “The 5G in Healthcare Symposium was a great platform for our partners, TM One and Siemens Healthineers to demonstrate the future of Malaysia’s private healthcare, providing a guide on how to transform hospitals by leveraging 5G. This sharing was truly valuable to the symposium participants.” “Having these esteemed digital leaders provided a clearer idea to the industry of how they can transform their institutions. We are both excited by the potential offered by 5G technology and confident of the expert support offered by our partners as the industry continues its digital transformation journey in delivering superior healthcare service to our patients,” he enthused. Rod Frazer, Managing Director of Siemens Healthineers in Malaysia commented, "The opportunity to aggregate healthcare data and leverage this to support the day-to-day decisions of patients and clinicians is the game changer in healthcare delivery and cost effectiveness. To shape this future, it is vital not only to work on ideas that will change the way we think about the healthcare sector in the long term but also to identify current developments such as 5G connectivity, which has the potential to transform the market. Siemens Healthineers is excited to collaborate on this initiative with APHM and TM One to facilitate such discussions in the country.” TM One’s suite of robust and secured digital infrastructure solutions enable organisations to harness the power of AI and IR 4.0 to take their transformation forward. TM’s recent partnership with Digital Nasional Berhad (DNB) to provide extensive fibre coverage for DNB’s 5G network emphasises its commitment to provide 5G infrastructure to support the digital aspiration of all Malaysians, including the digitalisation the nation’s private healthcare industry to support the vitality and wellbeing of the rakyat. For more details about TM One Healthcare solutions, visit www.tmone.com.my/industry/healthcare/
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