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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YTM and Istana Negara equips higher risk communities with disaster preparedness
Facilitates the development of localised Emergency Response Plans Over the years, Yayasan TM (YTM) has been actively involved in disaster emergency response efforts and lent its helping hand to affected communities in various ways. With many tragic losses of life and property due to natural disasters, it is imperative to help the public better understand the importance of preparedness, the risks involved and build capacities for pre-emptive and early action, including identifying vulnerabilities and potential impact on people and assets. Through its latest initiative, the YTM-Istana Negara Community Based Disaster Risk Reduction and Management Programme (CBDRRM), organised in collaboration with Istana Negara, the programme is aimed at empowering communities especially women and children as well as building community resilience during disasters with the necessary knowledge and skills in disaster preparedness - in alignment to the Government's aspiration to nurture a disaster preparedness culture among Malaysians. For the inaugural edition of the programme, YTM identified three (3) high risk areas in Kuantan, Maran and Bentong districts in Pahang. This is also a continuation from the support to the local communities post-flood early this year where YTM, together with Istana Negara provided basic necessities, workforce and monetary assistance to citizens in Karak, Ulu Tembeling and Kuantan districts. “This CBDRRM programme is both important and timely, in view of frequent heavy rain and storms of late. We hope that the local communities will fully utilise the skills and knowledge obtained from the initiative, to be better prepared for in the event of any flood incidents in their respective areas, minimising the impact and ultimately, saving lives,” said Izlyn Ramli, Director of YTM. “We were delighted to find that these modules were very helpful for them based on their feedback. Meanwhile, we remain on the ready to deploy response and humanitarian aid should the need arise,” she added. The first one was held in August 2022 for the community in Perumahan Awam Kos Rendah (PAKR) Sungai Pandan, Kuantan, which saw a total of 120 participants attending, while the second was held in Maran in September. With the support of the National Disaster Management Agency (NADMA) as well as the TM Reaching Out Volunteers (TMROVers), the programme was conducted by 12 humanitarian experts with vast disaster response experience, including risk and reduction management from Red A Humanitarian Global. The modules highlighted the importance of disaster preparedness, hands-on session to develop localised Emergency Response Plans, water safety and practical swimming, as well as simulation exercises. The participants were also briefed on mental health management and creating children-friendly spaces (CFS) as an added element. For any emergency response plan to work, active participation from the community becomes crucial. During the programme, the communities were also connected to their local government agencies such as the Malaysian Fire and Rescue Department (BOMBA), Royal Malaysia Police (PDRM), Malaysia Civil Defence Force (APM), Jabatan Pengairan & Saliran (JPS) Negeri Pahang for better disaster response in the future. The third and final session was organised recently in Bentong in collaboration with Istana Negara and attended by 125 participants. Via the three (3) series of CBDRRM in Pahang, YTM have reached a total of 458 community members and local government agencies; inclusively, empowering 123 female participants and 167 children and teenagers. This initiative is aligned with our aspiration to build capacity in disaster preparedness among community members, especially women and children, who are considered first responders’ priority when a disaster occurs. YTM will continuously support the community for better disaster preparedness and response through community leadership and self-empowerment.
Unlimited Support For Harimau Malaya With Unstoppable Uni5g
KUALA LUMPUR, 12 October 2023 – TM is pleased to announce an immersive digital experience that can be enjoyed by local football fans and Harimau Malaya supporters in a combined effort with the Football Association of Malaysia (FAM). As the Official Technology Partner for FAM and Harimau Malaya, TM, through Unifi Mobile, has teamed up with Fresnel Group of Companies to revolutionise the home football viewing experience. With innovations such as 360° Live Streaming of matches and a Virtual Reality (VR) Tour of the National Stadium Bukit Jalil powered by 5G, fans will enjoy an enhanced experience when cheering for our national team during the upcoming Pestabola Merdeka, both at home and on-the-go. On 13th October, fans can experience the Malaysia vs India match from diverse angles in a stunning 8K quality made possible through 360° Live Streaming, enabled by 5G technology. This immersive experience is delivered through dual 360° cameras strategically positioned at the National Stadium Bukit Jalil’s grandstand and goalposts, offering a one-of-a-kind viewing experience that allows fans to be virtually part of the action and feel the pulsating energy of the stadium. Malaysians are invited to immerse into this experience by tuning in to Unifi’s YouTube channel (youtube.com/@UnifiYourWorld) or visiting unifi.com.my/harimaumalaya. Hardcore football enthusiasts should also not miss the opportunity for an interactive VR Stadium Tour, exclusively accessible through Unifi Mobile Prepaid’s Limited Edition Harimau Malaya starter packs. This unique experience offers fans the chance to explore National Stadium Bukit Jalil – the proud home of Harimau Malaya. Fans will gain access to iconic behind-the-scenes locations including locker rooms and training facilities, previously unseen by the public. Through UNI5G, fans can virtually experience the excitement of the pitch as if they were physically present there, all from the comfort of their own homes or while on the go. Shanti Jusnita, TM’s Chief Marketing Officer said, “We are proud to partner with FAM and Fresnel Group of Companies in supporting Harimau Malaya and our local football scene. We have always seen football to be a bridge where Malaysians come together to support our Harimau Malaya team. As an enabler for Digital Malaysia, we are doing our part to innovate the digitisation of home football by bringing 5G applications and experiences to Malaysians through our UNI5G.” Unifi has been crowned the 2023 award winner by Ookla® for delivering the best mobile video experience in Malaysia. As the nation comes together to rally behind our Harimau Malaya team during Pestabola Merdeka, fans can be confident they are backed by the nation’s leading mobile video experience provider. In addition, through the Unifi Mobile Roar Louder campaign, fans visiting the Unifi Mobile booth at the Pestabola Merdeka from 13 to 17 October will have an exclusive chance to grab the coveted Limited Edition Harimau Malaya Jersey, Harimau Malaya Mafla, general access tickets and an instant RM5 cashback when they purchase UNI5G Prepaid Monthly Unlimited Plan, which includes Unlimited 4G+5G Data, Unlimited Calls and 5GB Hotspot – all for only RM45. Datuk Haji Hamidin Haji Mohd Amin, President of FAM said, “We are glad to see the efforts and outcome from the partnership we have with TM at this point. We are excited to present to our local football fans this 360° immersive viewing experience. Offering this experience with the long missed Pestabola Merdeka will hopefully be something unforgettable.” Fans are also invited to visit the Unifi Mobile booth at the National Stadium Bukit Jalil on 13 - 17 October to participate in various exciting activities. To know more about Unifi Mobile Prepaid and its exclusive offering, visit unifi.com.my/prepaid. *Unifi is Malaysia’s Speedtest Awards™ winner for Best Mobile Video Experience during Q1-Q2 2023 period. Based on analysis by Ookla® of Speedtest Intelligence® data for Q1–Q2 2023. Ookla trademarks used under license and reprinted with permission.
TM Global Expands Network Infrastructure To Boost High-Speed Connectivity For Sabah And Sarawak
KUALA LUMPUR, 30 October 2023 – TM Global, the wholesale domestic and international business arm of TM, today announced the successful deployment of two additional International Internet Gateways (IGW) in Sabah and Sarawak. These IGWs will serve as crucial hubs for international Internet traffic exchange, reflecting the business’ commitment to continuously expand its local network infrastructure and offer high-speed Internet connectivity in East Malaysia. This network expansion will enable TM’s customers in East Malaysia and the neighbouring region to access global internet traffic via the most efficient route. By reducing the need to route traffic back to West Malaysia, these IGWs will significantly enhance connectivity speed and reliability for businesses, service providers and their end-customers. The two IGWs are located in Penampang (Sabah) and Stampin (Sarawak), strengthening TM Global’s existing Internet Exchange (IX) nodes across Sabah and Sarawak. The existing nodes in Sabah are in Kota Kinabalu, Inanam, Elopura, Menggatal and Putatan. Meanwhile, in Sarawak the nodes are in Kuching, Bintulu, Miri, Petra Jaya, Kuala Baram and Tabuan Jaya. Commenting on the initiative, Khairul Liza Ibrahim, TM Global’s Executive Vice President said, “As a strategic partner to enable Malaysia’s digital agenda, the deployment of these new IGWs reinforces our mission to connect Malaysia globally. “More importantly, these IGWs help bridge the digital divide between urban and rural areas in Sabah and Sarawak, benefitting densely populated areas and enhancing Internet coverage for communities in smaller towns and remote locations. This will help drive digital opportunities for education, job prospects and entrepreneurship that will uplift these communities into the digital economy. “This amplified network reach also empowers TM Global to curate a more enriched digital experience, facilitating the global dissemination of substantial content at faster speeds while minimising latency. This advancement aligns with the progressive trajectory of 5G technology, demonstrating our unwavering dedication to position Malaysia as a trusted digital hub within the ASEAN region,” she concluded.
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