25 May 2022

TM records steady performance in 1Q2022 with revenue & PATAMI up 2.9% & 4.4%; maintains focus on its growth strategies execution

TM records steady performance in 1Q2022 with revenue & PATAMI up 2.9% & 4.4%; maintains focus on its growth strategies execution Article Header
TM

In the second year of its Transformation, the Group is on track to achieve its 2022 market guidance, focusing on strengthening its core businesses and investing in new growth areas

Telekom Malaysia Berhad (TM) continued its growth trajectory and long-term business sustainability, recording a steady performance in its First Quarter ended 31 March 2022 as compared to the same period last year (YoY).

The Group's operating revenue increased by 2.9% to RM2.89 billion, compared to RM2.81 billion in the same quarter last year, driven primarily by increased demand for voice, Internet and multimedia. Despite rising competition to offer converged solutions among telco and other technology players, TM continued to deliver strong customer growth across its operations.

Capitalising on its core businesses and investing into new growth areas, TM further ramped up its transformation initiatives, delivering profit after tax and non-controlling interests (PATAMI) for the quarter at RM339.9 million or 4.4% higher than the RM325.5 million recorded in 1Q2021. The Group also recorded lower financial costs subsequent to the early redemption of its RM2.0 billion sukuk in March 2021, as well as lower foreign exchange translation losses on borrowings. The Group has applied the Cukai Makmur statutory tax rate accordingly for the current quarter.

Accelerating into the second year of its Transformation, TM brought forward its manpower optimisation to enable earlier realisation of expected benefits to the Group. This, along with foreign exchange impact on trade settlement has led to a 5.0% decrease in EBIT at RM560.4 million for 1Q2022 compared to RM589.7 million in the same quarter last year. Excluding these costs, the Group's underlying EBIT is 14.0% higher at RM650.2 million compared to RM570.5 million in 1Q 2021. Free Cash Flow is lower by 15.1% at RM658.8 million compared to RM775.7 million due to higher CAPEX as the Group continues to invest in business expansion and meeting customers' demands through technology refresh and network delivery, ensuring steady growth.

unifi: Double-digit revenue and subscriber growth

unifi continued its growth performance, recording revenue increase of 10.6% from RM1.25 billion to RM1.38 billion in the current quarter. Sustained by increasing demand from Internet, voice and sales of devices, with cumulative fixed Internet subscribers increasing by 17.5% against the corresponding quarter last year. unifi remains the largest growth contributor for the Group.

unifi will continue to maintain its leadership in fixed broadband and enhance its Fixed-Mobile Convergence (FMC), 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 (TMW): Higher revenue from increased demand for data services

TM Wholesale (TMW) also recorded a growth performance for 1Q2022, with revenue increasing by 1.2% from RM631.9 million in 1Q2021 to RM639.5 million, mainly contributed by higher revenue from voice and data services. This was underpinned by increasing demand from High-speed Broadband Access (HSBA) and higher International Voice and Data.

To date, TMW continues 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 continue to serve other OTTs and hyperscalers with connectivity and data centres, while regionally, TM Wholesale aspires to establish Malaysia as a digital hub for ASEAN via new submarine cables, enhanced data centre solutions and edge computing.

TM One: Renewed focus on growing B2B digital solutions market

TM One, the Group's enterprise and public sector arm, recorded a 7.4% decrease in revenue from RM925.2 million to RM856.8 million in 1Q2022 due to decline in data services revenue.

Strengthening and growing its B2B digital solutions, TM One has focused its efforts on high potential industry verticals, namely healthcare, manufacturing, education, oil & gas, banking, financial services & insurance (BFSI) and public sector. It has entered a partnership with Tune Protect and Huawei Malaysia that saw Tune Protect becoming the first organisation in Malaysia to host an insurance core system on public cloud (Cloud αEdge).

Commentary and Outlook from Imri Mokhtar, TM Group Chief Executive Officer

"With our economy and borders reopening, TM is powering Malaysia's journey on its road towards recovery, by ensuring the vision of an inclusive and extensive Digital Malaysia becomes a reality.

"Into the second year of our Transformation, we are focused on strengthening our core business while investing into new growth areas to meet customers' demands. In ensuring sustainability in the long run, we continue to grow our profitability to invest and seize opportunities arising from digital acceleration.

"One of these opportunities is in the exciting space of digital solutions and services for enterprises. Building on TM One's existing capability and relationships with enterprises and the public sector, we will deliver speed and agility through our new digital arm Credence: a corporate start-up led by technology leaders.

"unifi continues to better its fixed broadband and Fixed-Mobile Convergence value proposition to improve customer experience, while expanding our offerings to provide quality entertainment to customers at home or on-the-go.

"We have also achieved some key milestones in our sustainability efforts. TM One has successfully secured the Green Electricity Tariff from Tenaga Nasional Berhad for its data centres in Kuala Lumpur, Cyberjaya and Johor Bahru, contributing to a lower carbon footprint as the demand for cloud storage inevitably increases. This is in addition to the existing Green Building Index (GBI) certification earlier obtained for its core data centres. TM's broader ESG commitment also remains consistent with Malaysia's initiatives towards achieving net-zero Greenhouse Gas emission for the country by 2050.

"Meanwhile, TM Wholesale continues to establish Malaysia as a regional digital hub via new submarine cables, edge computing, data centres and supporting international connectivity. On the domestic front, TM Wholesale continues performing its role as the enabler for industry broadband, 4G and 5G network via fibre infrastructure that will transform the nation's connectivity capabilities."

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16 Aug 2024
TM AND TANAH MAKMUR COLLABORATE TO BRING HIGH-SPEED CONNECTIVITY TO FLAGSHIP KOTASAS DEVELOPMENT

KUALA LUMPUR, 16 AUGUST 2024 – TM via its leading digital convergence arm, Unifi, is collaborating with Tanah Makmur Berhad, to provide fibre broadband services to more than 1,700 residences at the flagship Kota Sultan Ahmad Shah (KotaSAS) township in Bandar Baru, Kuantan. The agreement was exchanged between Unifi’s Vice President for Product & Innovation Armizy Abdullah Shukri, and Tanah Makmur’s Group CEO YH. Dato’ Shahrul Nizam Abdul Aziz, witnessed by YB. Dato’ Ir. Razali bin Kassim, EXCO, Pahang State Public Works, Transport and Health, and YH. Dato’ Kamarul’ Arifin bin Ahmad, Pahang State Investment Officer. Leveraging TM’s role as the nation’s leading digital infrastructure provider, Unifi will provide customised high speed broadband plans to residences. Homeowners and residents will have access to Unifi’s broadband services immediately, empowering their digital lifestyles. The inclusion of broadband services will also reinforce KotaSAS’ proposition to deliver high-value properties with reliable connectivity, strengthening its status as Pahang’s new administrative centre. Anand Vijayan, TM’s Chief Business & Consumer Officer, said, “Unifi is committed to providing the best digital infrastructure and connectivity services, enhancing the quality of life and economic opportunities within the KotaSAS community. This partnership will offer the same unmatched value, seamless integration, and superior customer support that we promise all our customers. This is another milestone in TM’s efforts to empower Malaysians with digital access for a better future, and aligns with our Digital Powerhouse aspiration to advance Malaysia for the next digital revolution.” YH. Dato’ Shahrul Nizam added, “We are pleased to work with TM and Unifi once more in delivering a seamless customer experience, ensuring future residents benefit from high-speed connectivity. The introduction of fibre broadband is just the beginning of our journey towards elevating KotaSAS as Pahang’s new administrative and economic capital, setting the stage for future smart city initiatives, energy-efficient systems, and digital public services. With digital services transforming homes, communities and businesses, KotaSAS is poised to not only be Pahang’s foremost township, but a central hub for socio-economic growth in the East Coast region.”  In addition to fibre broadband, KotaSAS residents will also gain access to Unifi’s converged offerings including the best 5G & 4G mobile services, the largest platform of premier channels and streaming apps in Malaysia, as well as comprehensive smart home solutions. Recently named the Best Home Broadband Service Provider at the 2024 PC.com Awards, Unifi continues to innovate and deliver outstanding services and value to communities throughout Malaysia.

15 Oct 2018
TM R&D wins prestigious MSC Malaysia APICTA 2018 for the innovation of Smart Safety Helmet

Places TM R&D as the Champion of Research & Development in 2018   TM Research & Development (TM R&D), the research arm and a wholly-owned subsidiary of Telekom Malaysia Berhad (TM) recently won the Cross Category: Research & Development for its innovative Smart Safety Helmet during the 19th MSC Malaysia Asia Pacific ICT Awards (MSC Malaysia APICTA) 2018 organised by the National ICT Association of Malaysia (PIKOM). Winning this prestigious award places TM R&D as the champion of Research & Development in 2018. In addition, TM R&D  has been selected to represent Malaysia in the Cross Category: Research & Development at the International APICTA Awards 2018 in Guangzhou, China. Present to accept the award was Dr. Sharlene Thiagarajah, Chief Executive Officer of TM R&D. Developed by TM R&D, Smart Safety Helmet is a data driven smart industrial or safety helmet, an Internet of Things (IoT) solution that provides live, wireless monitoring and array of sensors including accident impact and geolocation which can be used to perform various analysis towards creating a safer worksite. It sends telemetry to the cloud and processes the data for the benefit of the employer as well as the staff. It has all the safety helmet features, location tracking services, attendance, violation detection and a video camera for remote coaching and emergency observation of the workforce. This Smart Safety Helmet innovation is the first Smart Safety Helmet in Malaysia and it is now ready to be deployed for industry players across various sectors such as Oil & Gas, Construction, Chemical & Manufacturing Industry and many more. Commenting on the milestone achievement, Datuk Bazlan Osman, Acting Group Chief Executive Officer of TM said, “We are excited and thrilled to know that TM R&D has won the award. It was such a great honour and it is the first of many other innovations that will be introduced by our R&D arm. We are certainly proud of this recognition and TM R&D’s outstanding achievement in the ICT industry.” “TM will continue to introduce more innovative and converged propositions to empower Smarter Living, Smarter Businesses, Smarter Cities, Smarter Communities and a Smarter Nation - delivering a seamless digital experience and integrated business solutions to cater to individual lifestyle and business communication needs - towards making “Life and Business Easier for a Better Malaysia”,” he added. Meanwhile, Dr. Sharlene shared, “It is indeed a proud moment for us at TM R&D, as well as for TM Group. We have received tremendous interest for its novel design and unique key features that promote safety and collaboration while working on the field, regardless of industry. The invention of this smart helmet without doubt will increase operational efficiency at the work place and enhance productivity level of the workforce.” The Smart Safety Helmet started off as a challenge in speed and innovation, where the team worked towards creating a first working prototype within two (2) weeks. It later became part of one of the five (5) pillars of smart solutions under the Memorandum of Understanding (MOU) signed between TM and Petronas to increase operational excellence and enhance customer experience. Gaining huge interests from large corporations, the Smart Safety Helmet was invited to be featured at the recent 4th Malaysia Oil & Gas Services Exhibition and Conference (MOGSEC) as part of TM’s product showcase. MSC Malaysia APICTA provides recognition to outstanding achievements of individuals, students, entrepreneurs, SMEs and organisations with operations in Malaysia who have contributed to the development of the MSC Malaysia initiatives or in building applications and services for the benefit of Malaysia. It recognises creativity, innovation, and excellence in the Malaysian ICT arena. MSC Malaysia APICTA also provides an opportunity and an ideal environment for individuals and companies to gain local, regional and international exposure through on-going promotional activities, and through participation at the international Asia Pacific ICT Alliance Awards (APICTA). Winners of the MSC Malaysia APICTA Awards will represent Malaysia at the annual International APICTA Awards. For more information about TM R&D and its products and services, log on to www.tmrnd.com.my

26 Dec 2024
TM ONE AND SARAWAK DIGITAL ECONOMY CORPORATION (SDEC) BERHAD EXTEND COLLABORATION TO SPUR STATE’S DIGITAL ECONOMY

KUALA LUMPUR & KUCHING, 26 DECEMBER 2024 – TM One, TM’s enterprise and government sector solutions arm, and Sarawak Digital Economy Corporation Berhad (SDEC) have announced the next phase in their strategic partnership to elevate Sarawak’s digital economy, digital society, and government services through enhanced connectivity. The parties recently exchanged a master service agreement to expand Sarawak’s digital infrastructure, aimed at enhancing connectivity and accelerating the adoption of advanced technologies and smart services in driving the state’s digital transformation. The collaboration aligns with the Sarawak Digital Economy Strategy and Post-COVID Development Strategy 2030. This collaboration includes TM One’s Metro-E solution, a flexible, secure, and high-performance bandwidth connectivity scalable to up to 10 Gbps. Its dedicated access for critical applications, proactive security monitoring and nationwide coverage addresses the service levels needed for enterprises and government agencies alike. Shazurawati Abd Karim, TM One’s Executive Vice President, said, “We are pleased to partner with SDEC in advancing Sarawak’s digital transformation. The Metro-E project will bolster Sarawak’s digital economy, fostering innovation, improving access to digital services and bridging the digital divide across locations. High-speed connectivity at these 81 sites is essential for the adoption of advanced technologies, improving customer experiences and operational efficiency. This collaboration solidifies TM One’s commitment to Sarawak’s sustainable long-term growth and digital aspirations, aligning with the state’s 2030 strategies.” The five-year project will also deliver high-speed internet connectivity to underserved and rural areas, supporting key sectors such as education, healthcare, and local businesses. This will facilitate cloud computing, telemedicine, online education, and a variety of other digital solutions, furthering Sarawak’s digital progress. The partnership reaffirms TM One and SDEC’s commitment to transform Sarawak, empowering local communities and businesses, as well as enhancing government services through digital technologies. This collaboration is another milestone in TM’s commitment to enabling Malaysia’s digital transformation and to lead industry growth through digitalisation and sustainability, a pivotal part in TM’s efforts towards becoming a Digital Powerhouse by 2030.

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