27 Aug 2021

Solid first half 2021 for TM: revenue up +8.2%, EBIT up +29.9%, dividend declared

Solid first half 2021 for TM: revenue up +8.2%, EBIT up +29.9%, dividend declared Article Header
TM

First half 2021 Key Highlights (vs first half 2020)

  • Group Revenue grew 8.2% to RM5.57 billion from RM5.15 billion
  • Cost optimisation continues to yield results. Group Reported Earnings Before Interest and Tax (EBIT) increased by 29.9% to RM977.3 million, from RM752.4 million last year 
  • Group Reported Profit After Tax and Non-controlling Interests (PATAMI) rose 27.3% to RM544.0 million, compared to RM427.2 million last year
  • Record breaking unifi customer growth; fixed broadband customer base grew 15% to 2.55 million
  • Declares interim dividend of 7.0 sen per share totalling RM264.2 million in line with dividend policy
  • Continues to focus on value creation and ESG for sustainable growth

Telekom Malaysia Berhad's (TM) revenue for the first half of 2021 (1H2021) grew strongly by 8.2% to RM5.57 billion, compared to RM5.15 billion in the same period last year. In a statement today, the company said this achievement was driven by growth across all its customer segments – unifi, TM ONE and TM WHOLESALE.

On the back of this higher revenue and better cost efficiency, Group EBIT rose by 29.9% to RM977.3 million, from RM752.4 million last year. Subsequently, Group PATAMI grew 27.3% to RM544.0 million, from RM427.2 million in the same period last year.

The Company continues to invest in future growth by modernising its network and technology platforms, to deliver the best current and future solutions for its multi-segment customers. CAPEX spending in the first half of the year stood at RM597.0 million or 10.7% of revenue.  Of the amount invested, 65% was for network access, 16% for core network, and the balance 19% for support systems.

Fibre broadband of choice – highest ever new unifi customers recorded in 2Q2021

unifi recorded several operational milestones with more than 210,000 new customer activations in the second quarter of 2021 (2Q2021). This is the highest number of unifi activations in a quarter in its 11-year history. unifi achieved an important milestone of 2.0 million customers in May 2021. By the end of June, the overall fixed broadband customer base had gone up to 2.55 million, representing a solid 15% growth over the past 12 months since June 2020.

This growth was enabled by the higher number of ports added in 2Q2021 and wider fibre network coverage, exceeding the targets committed in the JENDELA plan, achieving 138% of its commitment in 1H2021.

unifi also increased its sales and installation capacity to meet strong fibre broadband demand. unifi also saw positive uptake of device bundles with the enhanced unifiYourWorld campaign offering smart lifestyle devices, unlocking the unlimited possibilities to enrich users' digital lifestyle and needs.

unifi brought live streaming of the recent Olympic Games Tokyo 2020 on 13 HD channels for free via unifi PlayTV app and unifi Plus Box, to enable Malaysians to support our athletes competing at the games.

Customer touchpoints and support remains in operation with stricter SOPs

As more Malaysians are working from home, conducting business online, participating in online learning and keeping the family entertained while staying safely at home, TM observed that internet usage went up by 45% since the start of MCO in March 2020.

All customer support services remain in operation with stricter SOPs to continuously serve customers. Customer care lines remain open and attended to over 3.6 million customer interactions in 1H2021.

TMpoint outlets and key partner stores remain open for service applications and essential transactions while adhering to strict SOPs. TM is also expanding and renovating selected TMpoint outlets with localised flavour, self-serve kiosks and implementing many other improvements to enhance its customers' experience.

New service installation and restoration activities remain available for customers with SOPs in place to ensure the safety of both, customers and TM personnel. Notably, TM activated unifi Rovers nationwide to help customers sign up easily.

Due to the higher volume of interactions during this pandemic period, customers are encouraged to use self-serve digital channels such as the unifi portal and myunifi app which are available 24/7 for service registration, service diagnostics, account-related enquiries and payment. A more simplified and personalised digital bill was also introduced for bill payment convenience of customers.

TM ONE is committed to accelerating MyDIGITAL aspirations with cutting-edge digital infrastructure and solutions

TM ONE continues to be the digital enabler and trusted partner for enterprise and public sector customers by providing dependable connectivity and delivering new customer projects in 1H2021. As customers pursue to accelerate their digitalisation adoption, this has translated into new contracts and renewals.

Following its appointment as the sole Malaysian Cloud Service Provider (CSP) under the MyDIGITAL blueprint, TM ONE sees growing demand for its Cloud services from enterprises and government agencies. In addition, TM ONE also served international demand to fulfil hyperscaled requirements as the local data centre provider.

With its complete suite of cybersecurity solutions under TM ONE CYDEC, TM ONE has formed alliances with strong global and local cybersecurity players to further enhance its ability to detect and eliminate cyber threats for enterprise and public sector customers. This will help pave the way for digital trust and cyber resiliency to help nurture a safer and more robust national cyber ecosystem.

TM WHOLESALE strengthens domestically, further builds partnership ecosystem globally

Domestically, TM WHOLESALE continues its growth momentum as the preferred infrastructure partner for High Speed Broadband (HSBB) access services. It also achieved further expansion of infrastructure coverage and capacity for Next Generation Backhaul services for several mobile network operators. TM WHOLESALE also secured bandwidth capacity upgrades for major Domestic Wholesale Data solutions and services.

Internationally, TM WHOLESALE strengthened its partnership ecosystem with more global telcos and hyperscalers for International Data services. TM WHOLESALE also secured more deals with global telcos and hyperscalers for International Ethernet services. It also expanded its digital media delivery network ecosystem with growth from domestic and international digital content players.

Focused on value creation and ESG for sustainable growth

TM continues to focus on Environmental, Social and Governance (ESG) principles of sustainable and ethical business practices in serving the nation:

  • Governance: TM is committed to uncompromising integrity. All its suppliers have signed the TM Integrity Pledge and more than 90% of Warga TM have progressively completed the Uncompromising Integrity e-learning module. TM also ensures that its corruption mitigation practices are independently certified - having completed the Anti-Bribery Management System (ABMS) certification and the Organisational Anti-Corruption Plan (OACP).
  • Social: TM aims to deliver social impact by ensuring the wellbeing of its Warga TM and the nation. TM is committed to bridging connectivity through the JENDELA plan. TM remains fully supportive of the Government's recovery plan - "Pelan Pemulihan Negara" - via its connectivity, digital infrastructure and solutions as well as various social contributions.
  1. Environment: TM continuously strives to reduce its annual carbon emissions from electricity usage through the retirement of old networks, implementation of an Energy Management System and improvement of energy-saving practices.

TM is continuously improving these sustainability efforts while at the same time upholding its commitment to its stakeholders.

Imri Mokhtar, Managing Director and Group Chief Executive Officer of TM commenting on the results:

"I am pleased to report that we have recorded a solid performance in the first half of the year and we are on track to meet our 2021 targets in line with market guidance. Coming off an exceptional first quarter, we recorded notable improvements in our 1H 2021 revenue and profitability against the same period last year.

"This was driven by higher revenue achieved by all of our customer segments – unifi, TM ONE & TM WHOLESALE and better cost efficiency. The current nationwide movement control order (MCO) has certainly influenced our business landscape and customer operations, but we are delighted with the momentum of our value programmes and the commitment of our frontliners.

"Our revenue in 1H2021 recorded an increase of 8.2% at RM5.57 billion against RM5.15 billion in the same period last year, driven by revenue growth from all customer segments. Our EBIT has increased by 29.9% from RM752.4 million to RM977.3 million.

Malaysia's economic growth outlook for 2021 continues to be challenging with the prolonged movement restrictions brought about by Covid-19. Notwithstanding the headwinds, our role remains. We will continue to serve the nation by meeting the demand for internet and data, both at the retail and wholesale fronts. This is evident through the acceleration of the number of ports deployed and the fibre network expansion under our Jalinan Digital Negara (JENDELA) commitment, which is well ahead of schedule. We remain steadfast and will leverage our comprehensive connectivity, digital infrastructure and other smart solutions to support the nation's digital aspirations under the MyDIGITAL blueprint.

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29 Sep 2021
TM & Astro collaborate to deliver high quality digital experience

TM provides Astro with full suite of wholesale infrastructure and connectivity solutions to enable Astro to serve its customers with reliable broadband and content services. Telekom Malaysia Berhad (TM) and Astro Malaysia Holdings Berhad’s wholly-owned subsidiary, MEASAT Broadcast Network Systems Sdn Bhd (Astro) today inked deals to collaborate in delivering a high quality digital experience to all Malaysians. The collaboration also signifies both companies' commitment to support the “Jalinan Digital Negara” (JENDELA) initiative in providing wider broadband coverage and a better experience nationwide. The agreements were signed by Imri Mokhtar, Group Chief Executive Officer of TM and Amar Huzaimi Md Deris, Executive Vice President, TM WHOLESALE while Astro was represented by Henry Tan, Group Chief Executive Officer and Shafiq Abdul Jabbar, Group Chief Financial Officer. Through this strategic collaboration, TM, via TM WHOLESALE, its global and wholesale business arm, will provide Astro with a full suite of infrastructure and connectivity solutions that comprises the whole range of wholesale services inclusive of high speed broadband (HSBB), bandwidth, backhaul and Internet access. This extensive and robust fibre network infrastructure will enable TM together with Astro to provide high-quality and reliable connectivity to their end-users. With TM’s HSBB service, Astro also will be able to provide broadband services to its customers without having the need to build a new infrastructure while extending its coverage to wider areas across the country via a fibre network. As for Internet services, TM’s internet access solution will enable Astro to offer high performance internet connectivity and a comprehensive solution to its customers. To complete the services, TM will also provide Astro with its Content Delivery Network (TM CDN), a newly developed content platform service that delivers seamless, faster and secure digital content. This will enable Astro to strengthen its video streaming efficiency to its current service offerings. Commenting on the collaboration, Imri said: “TM as the leading infrastructure partner for High Speed Broadband wholesale services, leveraged its superior network nationwide to support the industry’s broadband growth. We are also the primary mobile backhaul infrastructure provider for the industry with extensive coverage and capacity. As the digital infrastructure accelerator in Malaysia, we have always been a strong advocate of infrastructure sharing. Thus we are honoured to be given this opportunity to leverage each other’s expertise to provide Malaysians with high quality broadband and content services that we have. This strategic collaboration also demonstrates our commitment to ensure Malaysians are provided with a seamless and “always-on” connectivity experience. We are happy to work with Astro and this is yet another testament to our pivotal role as the enabler of Digital Malaysia aspirations.” Meanwhile, Henry Tan said: “This strategic partnership with TM lays the foundation for Astro to be an internet service provider. Astro’s goal is to provide Malaysians with the best digital experience and broadband value proposition. Leveraging on the strength of TM’s wide HSBB network will enable Astro to realise new revenue streams, scaling our broadband service with content bundles, or standalone broadband and other product lines. This deal gives us more flexibility to offer great value and convenience to our customers.”

16 Nov 2021
unifi encourages MSMEs to maximise Government Digitalisation Grant and accelerate their digitalisation journey with its suite of digital-first solutions

Government’s announcement to increase digitalisation grant to RM200 million next year is a big step in the right direction ​unifi is set to accelerate MSMEs in their digitalisation plans with its complete range of digital-first solutions. This comes after the Government’s announcement to raise the Digitalisation Grant for Malaysian micro, small and medium enterprises (MSMEs) to RM200 million next year. The increase is a big step in the right direction and is expected to have a significant impact on the push for digitalisation especially in a period when businesses are looking at technology to fast track their road to recovery and beyond. Along this road to recovery, unifi Business has positioned itself to become the preferred digitalisation enabler for MSMEs with its digital-first solutions while playing its part as a responsible corporate citizen in supporting the Government’s push to digitalise MSMEs. Anand Vijayan, Chief Commercial Officer of Telekom Malaysia Berhad (TM) said MSMEs should fully utilise this opportunity to accelerate their digitalisation journey and unifi Business is here to support them. “The decision to raise the digitalisation grant to RM200 million is a big move in the right direction and we’re ready to support the needs of MSMEs in Malaysia that want to accelerate their digitalisation journey.” “As a government-appointed Technology Service Provider Partner (TSP) under the MSME Digitalisation Grant, we have the complete range of digitalisation solutions for MSMEs in every step of their digitalisation journey,” said Anand during a virtual media briefing session held today. Since unifi launched its bespoke initiative that leverages on the Digitalisation Grant in August this year, the response from MSMEs have been overwhelming, further strengthening the brand’s position as the digital partner of choice among the MSMEs. Currently, unifi serves a significant portion of the nation’s MSME ecosystem with more than 375,000 MSMEs subscribed its solutions nationwide. Under this Grant, MSME entrepreneurs can subscribe to unifi Business Solution packages with savings of up to 50% across 12 months. In addition, unifi is offering prizes worth RM1.5 million to encourage MSME entrepreneurs to start digitising their businesses. Meanwhile, Mohamad Yusman Ammeran, unifi Head of SME Segment who was also present at the session said feedback from MSMEs showed that digitalisation served as a booster that helped these businesses recover and thrive. “The pandemic has transformed the business landscape in Malaysia and digitalisation is the way forward. We see a positive impact in the many businesses that we’ve supported during this very challenging period and I’m happy to see that many not only recover but have thrived thanks to our digitalisation solutions despite the challenges,” said Mohamad Yusman. unifi has a host of solutions to cater to the different needs of individual MSMEs. These include Microsoft 365 which allows businesses to increase productivity with real-time solutions to connect and collaborate anytime, anywhere. This solution also offers access to files in real time across multiple devices while ensuring a high degree of data integrity. For new businesses venturing into the digital marketplace, unifi offers a comprehensive Digital Marketing Solution where they can enhance their online presence with increased visibility especially on social media. Another unifi Business innovation is the cari@unifi Premium Listing site, a solution that allows businesses to reach a wider customer base through online listings and articles on the hugely popular local e-commerce platform, cari@unifi. In addition, unifi also organises complimentary awareness and training programs for MSMEs to increase their digital proficiency. On top of that, unifi has business consultants at 83 MSMEs Corners nationwide to provide advice and guidance to business owners – the only technology company in the country to provide such services. To encourage sign-up for the Digital Grant, unifi is also offering exciting prizes to successful applicants under its “Sign Up & Drive Away” contest. Prizes include nine (9) four-wheel drive (4WD) vehicles during the contest period which will end 31 December 2021. Other interesting prizes include laptops, smartphones and tablets. For more information on unifi Business Solutions and SME Digitalisation grant offerings, please visit www.unifi.com.my/business/smegrant.

26 Nov 2019
TM reports operational improvement for 3Q 2019 amidst challenging environment

Telekom Malaysia Berhad (TM) today announced its financial results for the quarter ended 30 September 2019. ​Financial and Operational Highlights as at Year-to-Date (YTD) September 2019 vs YTD September 2018: Group Revenue of RM8.40 billion, 3.8% lower against YTD September 2018 – in line with guidance- mainly due to lower contribution from all lines of products except data and non-telecommunication related services. Group Reported Earnings Before Interest and Tax (EBIT) for YTD September 2019 increased to RM1.20 billion, from Loss Before Interest and Tax (LBIT) of RM187.3 million over the corresponding nine (9) months period last year, on the back of lower operating cost, from the Group's various cost optimisation initiatives.  Group Reported Profit After Tax and Non-controlling Interests (PATAMI) showed significant improvement with a 718.9% growth YTD to RM683.8 million, from RM83.5 million in the corresponding period last year. Stripping off non-operational items, Normalised PATAMI stood at RM810.9 million, higher by 53.7% against the same period last year. The total capital expenditure (CAPEX) was within guidance at 8.8% of revenue or RM736.0 million. Out of the amount spent, 16% was made for Core Network, 58% for Access and the balance 26% was made for Support System. unifi updates: Increased YTD convergence penetration to 55% of TM Households compared to 48% in 30 September 2018. Total broadband customers as at 30 September 2019 was more than 2.15 million. #khabarbaik customer experience related initiatives in 3Q2019: Streamlined all Streamyx packages to a new unifi Lite plan at RM69/month for existing Streamyx customers. Introduced unifi Air to elevate the internet experience of existing Streamyx customers residing in TM's LTE coverage areas. Launched an all-in-one app; myunifi for an easy experience in managing unifi account. TM ONE updates: Signed a series of MoUs and cross-industry strategic digital collaborations with Ministry of International Trade and Industry (MITI), Ministry of Rural Development, Global Health, UMW Corporation Sdn. Bhd. (UMW), Open University Malaysia (OUM), Bintang Urusjuta (M) Sdn Bhd and Digital Perak Corporation Holdings (DigitalPerak). TM ONE further demonstrated its capability to enable digital businesses and government with ten (10) smart solutions and end-to-end Hyperconnected Ecosystem. Held its annual flagship event LEAP Summit 2019 themed "Creative Disruption – Get Ready for It!" to share the successes and lessons from global creative disruptors and provide in-depth insights on industry trends towards Industrial Revolution 4.0 (IR 4.0). TM GLOBAL updates: TM as the National Telecommunication Infrastructure Provider continues to serve as the industry backbone - serving and collaborating with all other licensed operators in Malaysia as the strategic enabler of the Government's National Fiberisation and Connectivity Plan (NFCP) towards reaching more underserved areas nationwide and supporting 5G requirements with its ready and upgraded network infrastructure.   Dato' Noor Kamarul Anuar Nuruddin, Group Chief Executive Officer, TM, commenting on the results: "Overall, in 3Q 2019 we saw continued improvements in our fundamentals. I'm pleased to report that our cost management initiatives under our performance improvement plan carried out since last year continues to yield results with profitability improvement. We have managed to keep a closer eye on our operational efficiencies to deliver sustained profitability with lower YTD OPEX/revenue. However, in line with sector contraction, our revenue challenges still persist on the retail front, in line with our expectations and 2019 market guidance. Our CAPEX for YTD September 2019 is well within guidance, totalling 8.8% of revenue, and on track as we continue our targeted investments to ensure we deliver better service experience for all our customers. We continue to offer attractive unifi products and promotions to acquire more customers, whilst addressing Streamyx customers and coverage pain points with price adjustments and our wireless offerings. Over the last three months, we have expressed our intention to be the key driver for Malaysia's Digital Nation aspirations. TM is ready to propel the nation into Industrial Revolution 4.0 (IR4.0) with our proposal to be the nation's infrastructure provider in both the fixed and mobile space. This commitment is reinforced with our participation in the 5G demonstration projects and our preliminary moves toward building infrastructure readiness. In the next few months, we will be showcasing our 5G use cases in SS15, Subang Jaya, Selangor and Langkawi, Kedah in collaboration with local municipal councils and other potential partners. The use cases will cover Big Data Analytics, Smart City, Smart Tourism and Smart Agriculture clusters. The deployment of our tested and proven 5G-enabled smart solutions for the showcase are testament of our commitment in humanising technology towards making life easier, and enriching the quality of life for all Malaysians." Prospects for the Financial Year Ending 31 December 2019 The Group's performance improvement initiatives and efficient cost management continue to improve our profitability. Our focus remains toward our customers, and to strengthen the Group's performance by investing to improve customer experience across segments to grow our revenue.

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