23 Nov 2023
TM Delivers Strong Performance Amidst Challenging Market Conditions in 3Q 2023
3Q 2023 Key Highlights (vs 3Q 2022)
· Operating Revenue declined 2.6% to RM3.08 billion, due to market challenges
· PATAMI grew 102.9% from RM265.2 million to RM538.2 million
· CAPEX investment stood at 15.1% of revenue or RM1.38 billion, mainly for network infrastructure expansion
KUALA LUMPUR, 23 November 2023 – Telekom Malaysia Berhad (“TM” or “the Group”) demonstrates resilience in the face of challenging market dynamics, delivering stronger financial performance in the third quarter ended 30 September 2023 (3Q 2023), compared to the corresponding period last year. This steadfast momentum solidifies TM’s position in the local and global telecommunications landscape.
The Group’s Profit After Tax and Non-Controlling Interest (PATAMI) experienced a surge of 102.9% from RM265.2 million to RM538.2 million, against a revenue of RM3.08 billion primarily attributed to a lower tax impact and reduced net finance costs.
The strong performance of two of TM’s lines of business, Unifi and TM Global played a pivotal role in this growth. Unifi’s fixed broadband subscription increased 4.6% reaching 3.12 million, while TM Global’s revenue increased due to heightened demand for both domestic and international data services.
The Group’s year-to-date (YTD) Capital Expenditure (CAPEX) investment stood at RM1.38 billion or 15.1% of the overall revenue. This strategic allocation of resources is directed towards the nationwide network infrastructure expansion and enhancement of its regional submarine cable system.
Reflecting on the 3Q 2023 performance, Amar Huzaimi Md Deris, TM’s Group Chief Executive Officer said, “I am pleased to announce the significant strides we have made amidst intensified competition. Our commitment to advancing quad-play convergence services, coupled with the introduction of attractive and competitive packages, enabled us to retain and expand our customer base, solidifying our portfolio as the true convergence champion.
“Our relentless pursuit of improving mobile coverage nationwide aligns with our dedication to inclusivity, bridging the digital divide, and fostering widespread digital adoption. By ensuring our services are accessible to all, we contribute to creating a more connected and inclusive society.
“Simultaneously, our aggressive expansion of data and network infrastructure is strategically positioned to meet the growing demands of our domestic market and attract more international players. This is a crucial step towards positioning Malaysia as a digital hub for the region, contributing significantly to the creation of a globally connected digital economy.
“TM supports the recently launched New Industrial Master Plan (NIMP) 2030 and we are well positioned to unlock technological opportunities whilst driving innovation for the nation and key economic sectors. As we continue our journey towards humanising technologies, our commitment extends beyond services to the development and refinement of smart innovative solutions. It is not just about technological advancement and improving business outcomes but also about enhancing lives, bringing positive impact to the environment and society.
“In summary, these initiatives underscore our goals to foster digitalisation and emerging technologies. Our comprehensive approach reflects TM’s position as a trailblazer in the ever-evolving landscape, with a clear focus on driving positive change and shaping the future of digital connectivity”, added Amar.
LINES OF BUSINESS PERFORMANCE
Unifi Drives Innovation and Maintains Growth Trajectory
Unifi recorded 0.7% revenue growth reaching RM1.41 billion, propelled by effective convergence campaigns and robust customer retention activities.
As leader of converged offerings, Unifi continues to elevate connectivity at home and on-the-go through the country’s best fibre network, superior 4G coverage and an expanding 5G nationwide footprint. Driven by vibrant content offerings, improved mobile coverage and competitive new packages, Unifi caters to diverse consumer lifestyles and digital experiences for Malaysians. Unifi received the Open Signal 5G Global Awards 2023, recognising it as one of the fastest 5G telcos in the world.
Unifi Business serves close to 400,000 MSMEs nationwide and further strengthened its position as a preferred digital partner. Its diverse digital solutions help MSMEs build stronger brand presence and online visibility, enhanced by ultra-speed broadband internet and 5G mobile to empower their business.
Looking ahead, Unifi is solidifying its true convergence leadership and powering the MSME digital ecosystem, driving continuous innovation for the nation’s connectivity needs.
TM One Navigates Challenges, Continues to Drive Smart Innovation
Despite intense competition, TM One remains a resilient and trusted partner for enterprises and the public sector. Recently, TM One forged a successful collaboration with the Selangor government to launch the Selangor Government Data Exchange (SelGDX) portal, positioning Selangor as the first state in Malaysia to develop a data-sharing platform across its 48 agencies and departments. The portal facilitates secure, fast, and accurate data sharing and processing with enhanced efficiency while fostering transparency and good governance.
In August, CyberSecurity Malaysia recognised TM One for its role in safeguarding the Critical National Information Infrastructure through its Security Operations Centre and Network Operations Centre. The award reinforces TM One's commitment to protecting data and devices across all network environments, contributing significantly to national security and opens the door to new cybersecurity solution opportunities.
Moving forward, TM One maintains its focus on managed converged next-gen connectivity, smart services, cloud and cybersecurity while remaining steadfast in providing fit-for-purpose solutions to enable industry digital transformation and economic growth. TM One is well positioned to support the recently launched NIMP 2030, dedicated to enabling innovative solutions for the nation and key sectors, spurring new opportunities and driving continuous innovation.
TM Global Strengthens Malaysia position as the Preferred Digital Hub for ASEAN
TM Global reported a 5.0% revenue increase to RM808.6 million from RM769.9 million, driven by encouraging demand for both domestic and international data services.
TM Global actively contributed to Malaysia’s digital transformation through continuous deployment of 5G infrastructure, HSBB access and edge facilities nationwide. These facilities set the foundation for industry players to offer new innovative 5G solutions and industry specific use cases. Despite market challenges, TM Global mitigated the risk through strong collaborations with industry players in promoting wholesale broadband solutions to drive internet inclusivity for the nation.
TM Global signed a Memorandum of Understanding with SK Telecom for the joint development of Multi-Access Edge Computing and participated in the Asia Link Cable System to enhance submarine cable capacity from Malaysia to Asia, amplifying inbound traffic, laying a solid foundation for the future of Malaysia's digital landscape.
Looking ahead, TM Global remains focused on advancing 5G and broadband infrastructure, whilst expanding its submarine cable system and building regional scale in Content Delivery Network. It will further expand its edge and data centre capabilities, positioning Malaysia as the preferred digital hub for ASEAN.
2023 Market Guidance
| Revenue Growth | Flat |
| EBIT | RM1.8bil - RM2.0bil |
| CAPEX/Revenue | 18% - 20% |
The Group is on track to achieve its 2023 market guidance, reinforcing its commitment to powering a digital future.
YOU MAY ALSO LIKE
TM Integrity Day 2023 Emphasises “Uncompromising Integrity” as Cornerstone of Corporate Governance
KUALA LUMPUR, 2 November 2023 – TM reaffirms its commitment to integrity, corporate governance, and ethical business practices as it celebrates TM Integrity Day 2023 (TMID). This annual event serves as a platform to reinforce its core values among Warga TM, business partners and its supply chain ecosystem. The theme ‘Uncompromising Integrity’ was chosen to underscore TM's dedication to upholding the highest standards of compliance and ethics in all aspects of its operations. Through these principles, TM continues to strengthen its corporate governance and culture of responsible business conduct. The event featured a forum titled “Strengthening Integrity & Governance” with insights from Tan Sri Abu Kassim Bin Mohamed, Chairman of the Advisory Board of the National Centre for Financial Crime Prevention, and Datuk Dr. Anis Yusal Bin Yusoff, Director of the Centre for Leadership and Professional Development (UM Lead). The forum was moderated by Nik Azli Bin Abu Zahar, Group General Counsel of TM. In addition to the forum, various programmes were organised, including a theatre performance by Akademi Seni Budaya dan Warisan Kebangsaan (ASWARA). Dato’ Zainal Abidin Bin Putih, Chairman of TM, emphasised in his launching speech, “High integrity and efficient governance form the bedrock of any organisation and are essential for building trust among stakeholders. Key principles such as transparency, accountability, fairness, and responsibility in delivering services to customers must be upheld to ensure the sustainability of the organisation.” He added, “Beyond qualifications and skills, another essential attribute that every individual should possess is Integrity. The absence of these qualities will not only harm the individual but also have a detrimental impact on the company's performance and reputation”. The event was broadcasted live to facilitate broader participation from Warga TM and TM’s business partners virtually. TM continues to foster a culture of integrity, accountability, and ethical conduct, ensuring a more sustainable future for all stakeholders.
TM aspires towards a human-centred technology company in delivering digital Malaysia following successful 37th AGM
2021 a milestone first-year of the New TM Transformation Telekom Malaysia Berhad ("TM" or "the Group") today successfully concluded its 37th Annual General Meeting, with all 13 Ordinary Resolutions and one Special Resolution tabled duly approved by its shareholders. The Meeting was conducted online for a third consecutive year to allow maximum flexibility for engagement with shareholders. The event saw over 1,000 shareholders attending virtually. Hosting the proceedings for the first time, Tan Sri Mohammed Azlan Hashim, Chairman of TM's Board of Directors said, "2021 has been a milestone first-year in our New TM Transformation, with the Group setting a solid foundation as a growth-oriented PLC investing for optimum long-term returns for its shareholders, while also continuing its nation-building efforts to realise a truly Digital Malaysia." Alongside the Board of Directors, key senior leaders including Imri Mokhtar, Managing Director and Group Chief Executive Officer; and Razidan Ghazalli, Group Chief Financial Officer were also in attendance to offer insights into the 2021 Audited Financial Statements and the Group's moving forward business priorities. "In 2022, we aim to continue growing our operating revenue by strengthening our core business momentum to improve profitability, enabling us to invest for future growth. Our first quarter of 2022 recorded steady revenue growth at RM2.89 billion, an increase of 2.9% from this same period last year, despite heightened competition. We also ramped up our transformation initiatives and delivered profit after tax and non-controlling interests (PATAMI) at RM339.9 million, or 4.4% higher. We will continue to optimise cost and improve productivity in our effort to raise EBIT to more than RM1.8 billion," Imri explained. He added: "We are intensifying our efforts in the remaining seven months to deliver the next chapter of our Transformation. We will look at a total CAPEX spend between 14-18 per cent of revenue, with spending primarily focused on network expansion and modernisation together with enhancing customer experience." unifi will continue to maintain its leadership in fixed broadband and enhance its Fixed-Mobile Convergence (FMC) proposition, enriched with TV and streaming content. This reflects its commitment to improve its FMC customer experience with better and seamless service. unifi will also grow its SME digital platform as a one-stop service centre for solutions catering especially to SMEs nationwide. TM Wholesale will continue to enable industry broadband and 4G network via its fibre infrastructure, with the ongoing 5G rollout further strengthening that role. On the international front, it will further serve other OTTs and hyperscalers with connectivity and data centres, moving towards establishing Malaysia as a digital hub for ASEAN via new submarine cables, enhanced data centre solutions, and edge computing. TM One, as the sole home-based cloud service provider will also offer end-to-end managed services with robust connectivity and infrastructure. In addition to ensuring data sovereignty and security for the MyGovCloud initiative, TM One will be ramping up its data centres to support the nation's Cloud First agenda. Recognising that the future is digital, TM has also invested in strengthening its digital services through Credence, a new arm that will focus on expanding the capabilities of enterprises in their digital transformation journey. Helmed by senior leaders from the technology sector, this new business will serve existing TM customers as an end-to-end Cloud and Services solution partner, offering services from tech infrastructure to business insights, IT landscape migration, SaaS, managed services as well as analytics. While improving connectivity and digitisation solutions to enable a better Malaysia, the human factor remains the true centre of TM's growth agenda. Imri concluded: "Our aspiration is to evolve towards becoming a human-centred technology company. From our beginnings as just a fixed telco, we are now a converged telco providing voice, internet and data through both fixed and mobile technology, which further delivers content, data centre and cloud services. The next step is to evolve from delivering converged connectivity into a human-centred technology company – delivering lifestyle and business solutions for our customers with innovative digital technology and applications. "In a market where telcos and other digital players now have a play in almost every solution, customer experience will be the true differentiator in attracting and retaining customers."
TM One and SME Bank collaborate to deliver technology funding to SMEs under PENJANA
TM One and SME Bank sign agreement to provide technology funding to SMEs via SME Technology Transformation Fund (STTF) TM One, the business and public sector solutions arm of Telekom Malaysia Berhad (TM) today signed a Memorandum of Understanding (MoU) with Small Medium Enterprise Development Bank Malaysia Berhad (SME Bank), an agency under the Ministry of Entrepreneur Development and Cooperative to offer technology funding for its Small and Medium Enterprise (SME) customers to accelerate their business and digital transformation. The MoU was signed by Ahmad Taufek Omar, Executive Vice President and Chief Executive Officer, TM One while SME Bank was represented by Aria Putera Ismail, its Group President/Chief Executive Officer. The SME Technology Transformation Fund (STTF), is a fund set up between SME Bank and the Ministry of Finance to offer financing assistance of up to RM3.0 million to local SMEs. This is part of the Government's Pelan Jana Semula Ekonomi Negara (PENJANA) economic stimulus package to provide financial assistance to SMEs in adopting digitalisation and/or automation in their business operations. Commenting on the collaboration, Ahmad Taufek said, "We are excited to work hand-in-hand with SME Bank to accelerate digital adoption amongst our customers particularly in the SME segment. This is in support of the Government's efforts under PENJANA to execute key initiatives to help SMEs during the COVID-19 pandemic. Our aim is to assist SMEs in addressing real business challenges and issues that they are currently facing with the digital solutions available. We have put in place dedicated teams and solutions to enable our customers to realise the full potential of their digital opportunities. Our Professional Services are a consultative approach in helping SMEs to understand how to plan their digital transformation based on their unique business requirements." Meanwhile, Aria said, "With a fund size of RM500 million, STTF is expected to directly assist SME entrepreneurs to achieve higher productivity, process efficiency, efficient cost management and greater market penetration. As at 11 November 2020, SME Bank has approved 18 applications worth RM36.55 million under the STTF fund. SME Bank's role in encouraging the SMEs to adopt digital technology was further enhanced with the introduction of ODELA, the first one-stop e-commerce platform backed by a Development Financial Institution (DFI), that enabled B2B entrepreneurs to make transactions and foster partnership across vast ecosystems. The Bank's wholesome approach in providing financing and entrepreneur development assistance further adds value and accelerate the development of digital economy thus boosting the nation's economic growth in this challenging time." STTF is to be used for financing the purchases of IT solutions and services, technology support services, computer hardware and software, equipment and/or machinery and other intangible assets to enhance productivity and efficiency. SMEs as defined by the National Entrepreneur and SME Development Council (NESDC) are eligible to apply for STTF. TM One's solutions are aimed at helping SMEs to achieve higher productivity, better cost management and improved efficiency for wider market penetration through the adoption of digitalisation and automation. As the digital enabler for enterprise and public sector customers with enterprise-grade connectivity and end-to-end cloud offerings, the Company is well positioned to enable the ecosystem for digital society, digital business and digital government. Leveraging on its complete digital solutions offerings across connectivity (Internet & Data), voice and collaboration tools, business outsourcing services, cloud services, cybersecurity and Internet of Things (IoT)-based smart services, TM One will fulfil the needs of businesses and the public sector in embracing digital convergence towards enabling Digital Malaysia. This is in line with TM Group's unique role as the nation's connectivity and digital infrastructure provider. It is also in support of Jalinan Digital Negara (JENDELA) Plan to drive Malaysia's Digital Economy through business digitalisation and new ways of working. For more information on TM One solutions and how to apply for STTF, visit www.smebank.com.my and www.tmone.com.my.
NEWSLETTER
Just drop your details and stay updated with the world of Telekom Malaysia. We promise – no spam!