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.
TM recognised as employer of choice at Graduates’ Choice Awards 2020 and World HRD Congress 2020
The Company was voted as among the top by university students across Malaysia. Telekom Malaysia Berhad (TM) was recently chosen as one of Malaysia's Most Attractive Graduate Employers to Work for in 2021 in conjunction with the 3rd Graduates' Choice Awards 2020, organised by Talentbank. The Company was ranked first in the Government-Linked Companies (GLC) category and top three (3) in the Telecommunications Category. Recognised by over 750 organisations nationwide, the Graduates' Choice Award is an esteemed award which gives recognition to outstanding organisations that demonstrate exceptional employer branding as voted by over 24,000 university students across Malaysia. In addition, TM was also recently awarded three (3) awards at the 11th Asia's Best Employer Brand Awards in the following categories: Best Employer Brand Excellence in Training Innovation in Recruitment Hosted by the Employer Branding Institute, World HRD Congress and Star of the Industry Group, Asia's Best Employer Brands Awards recognises efforts of organisations in the Asian region that have demonstrated excellent employer branding through effective talent strategies, talent development and talent innovation. The event was recently held virtually in conjunction with the 29th World HRD Congress 2020, one of the largest Human Resource global conferences, where leaders and professionals in Human Resource field from over 133 countries gather to discuss about Human Resource best practices. Meanwhile, earlier in February this year, in conjunction with the 28th World HRD Congress, TM received two (2) more awards namely Best Workplace Practices at the Global HR Excellence Awards and Employer of Choice at the HR Tech Award & Conferences held in Mumbai. Commenting on the awards, Farid Basir, Chief Human Capital Officer, TM said, "As the enabler of Digital Malaysia, these awards are a solid testament of the Company's commitment and efforts in nurturing digitally-skilled Warga TM across all functions. We are also continuously strengthening our employees' capabilities and competencies towards building a future-proof workforce, not only for the Company but also for the country." "The driving force behind our success thus far is our people, Warga TM, who make up the great team within TM. All these acknowledgements are dedicated to their hard work and determination in giving the best to our customers, the communities and to the nation. As an employer of choice, we have put in place various initiatives to develop and equip Warga TM with the necessary skills and knowledge for the future through trainings and upskilling programmes," he added. Besides that, specifically for youths and graduates seeking for job opportunities, TM has also organised various initiatives and programmes which include the Professional Training and Education for Growing Entrepreneurs (PROTÉGÉ) Programme in collaboration with the Government, launching of TM Executive Leadership Industry Trainee (ELIT) programme for Yayasan TM scholars, career webinars and participation in virtual career fairs. This aligns with the Company's aspiration to be positioned as an Employer of Choice for future talents.
TM Bags Dual Platinum Wins at the Putra Brand Awards 2023
KUALA LUMPUR, 23 January 2024 – TM is proud to receive the prestigious Platinum Award in the Communication Networks category at the recent Putra Brand Awards 2023. This accolade is further elevated by the simultaneous achievement of its educational arm, Multimedia University (MMU), which also secured the Platinum Award in the Education & Learning category. The Platinum Award in the Communication Networks category underscores TM’s position as a trusted provider of superior connectivity and innovative solutions in the telecommunications sector. This recognition from one of the region's most respected award platforms reflects TM’s commitment to quality, customer satisfaction, and technological advancements. MMU’s success in winning the Platinum Award in the Education and Learning category signifies TM’s diverse capabilities and its strong foothold in the educational sector. As a leading institution, MMU is at the forefront of integrating advanced technology and research in education, shaping future generations with its pioneering initiatives. Amar Huzaimi Md Deris, TM Group Chief Executive Officer said, “These awards are a clear reflection of our commitment to realising our brand promise ‘Your Next is Now’ and they mark a significant milestone on our strategic path in becoming a digital powerhouse by 2030. They validate our efforts to deliver excellence in every aspect of our work. It not only celebrates our excellence in telecommunications but also highlights our impactful contribution to education. We are thankful to our customers, partners, and especially the voters, whose continuous support has been pivotal in achieving this honour.” The Putra Brand Awards, distinguished for highlighting brand strength based on consumer preference, involve a stringent selection process that emphasises consumer trust and brand excellence. Winning in two distinct categories demonstrates TM’s versatile expertise and leadership in multiple domains. TM sincerely appreciates all its customers and stakeholders for their loyalty and trust, which have been instrumental in achieving these awards. These accolades reinforce TM’s dedication to maintaining the highest standards in both its telecommunications services and educational endeavours.
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