26 Nov 2024
TM Reports Steady 7.9% Growth in EBIT for First Nine Months of 2024, Maintains Positive Year-End Outlook
3Q YTD 2024 Key Highlights (vs 3Q YTD 2023)
- Operating revenue stood at RM8.66 billion
- EBIT increased 7.9% to RM1.81 billion
- Fixed broadband subscribers grew 1.6% to 3.167 million
KUALA LUMPUR, 26 November 2024 – Telekom Malaysia Berhad (“TM” or “the Group”) announced its financial results for the first nine months of 2024, reporting a steady 7.9% increase in Earnings Before Interest and Tax (EBIT) year-to-date (3Q YTD 2024), reaching RM1.81 billion on the back of RM8.66 billion in revenue. This result underscores the Group’s ability to sustain stable revenue and maintain resilience amidst intensifying competitive pressures and a challenging operating environment, positioning the company for a strong close to the year.
The Group recorded a Profit after Tax and Non-Controlling Interests (PATAMI) of RM1.29 billion, which is lower than the previous year due to a one-off tax credit received in 2023. Excluding the one-off tax credit and foreign exchange impact, the Group’s PATAMI shows solid growth year-on-year. Meanwhile, Capital expenditure (CAPEX) in 3Q YTD 2024 amounted to RM767 million, representing 8.9% of total revenue.
Amar Huzaimi Md Deris, TM Group Chief Executive Officer said, “The Group continues to demonstrate resilience, with an encouraging YTD increase in EBIT, driven by continuous business improvements, cost optimisation, and operational efficiencies. This is further reinforced by our strong balance sheet and cash reserves, highlighting the Group’s healthy financial position.
“Our broadband subscriber base continues to grow steadily, driven by the Unifi UniVerse campaign - our best convergence offerings to date, further solidifying our position as the leading convergence provider with the only quad-play services in Malaysia. We also continue expanding collaborations with enterprises and government agencies to accelerate digital adoption in key verticals such as 5G, Smart Services, Healthcare, and Education. At the same time, we remain steadfast in preparing robust infrastructure to connect the world to Malaysia, including submarine cables and data centres to drive the nation’s digital transformation and strengthen its role as the digital hub for ASEAN.
“As we enter the final quarter of 2024, we are adopting a more proactive approach to boost revenue through fixed-mobile convergence and leveraging new technologies like 5G, cloud and Artificial Intelligence (AI) solutions to enhance customer experiences. In summary, with a clear strategy and strong execution, combined with a focus on disciplined cost efficiency, we are confident in sustaining TM’s growth momentum, keeping us firmly on track to becoming a Digital Powerhouse by 2030,” Amar concluded.
The Group maintains a positive outlook to close the year and remains on track to achieve its market guidance issued for 2024.
Lines of Businesses (LOBs) Performance
Unifi Strengthens Position as the Market Leader in Converged Services
Unifi recorded a 1.6% increase YTD in fixed broadband subscribers, reaching 3.167 million in 3Q YTD 2024. This growth demonstrates Unifi’s effective strategy in acquiring and retaining customers driven by its UniVerse campaign, including the Unifi Device Fiesta offering. The mobile segment has also expanded, fuelled by enhanced postpaid and prepaid offerings; the 200GB 5G Monthly Data Pass for just RM1 for UNI5G Postpaid 39 customers, and the UNI5G WOW Prepaid plan with 5G and 4G data. Moreover, Unifi TV’s Aneka Plus Pack was also relaunched to include Vidio, Indonesia’s leading streaming platform, providing customers with even more entertainment options.
Additionally, Unifi Business recently announced a strategic partnership with TNG Digital to accelerate 5G adoption and transform eWallet experiences for MSMEs in Malaysia. These initiatives, along with Unifi’s broader offerings highlight its commitment to delivering comprehensive, high-quality services that meet the evolving needs of Malaysia’s digital market, further cementing its role as the nation’s true convergence champion. For more information, visit https://unifi.com.my/all-in-one, https://unifi.com.my/tv/ and https://biz.unifi.com.my/
TM One Drives Digital Transformation for Enterprises and Government
TM One, the Group’s enterprise and Government sector business solutions arm, recorded a 2.0% increase in revenue, reaching RM2.12 billion in 3Q YTD 2024 with improved contributions from digital services and key customer projects. During the quarter, TM One drove the successful Private 5G network deployment at PETRONAS LNG Complex Bintulu and subsequently delivered the first 5G Private Campus Network in Malaysia at the Universiti Teknologi Petronas (UTP) for the PETRONAS-UTP 5G Innovation Lab. Additionally, it partnered with KPJ Healthcare Bhd to deliver advanced Software-Defined Wide Area Network (SD-WAN) Internet Services integrated with enhanced firewall capabilities to accelerate KPJ’s digital transformation.
TM One also launched the first AI-enabled Global Business Services (GBS) Centre in the East Coast to foster investment growth in the East Coast Economic Corridor. It further strengthens its commitment to empowering the local talent ecosystem and promoting digital inclusivity through a strategic partnership with the Ministry of Education to enhance Malaysia’s digital competencies via TVET programmes. These initiatives reflect TM One’s commitment to driving Malaysia’s digital transformation, empowering businesses, communities, and the government.
TM Global Strengthens Malaysia’s Position as a Digital Hub for the Region
TM Global, the Group’s wholesale business arm recorded a positive quarterly growth, with a 4.7% increase in revenue in Q3 2024 to RM787.0 million, driven by the increased demand for international data as well as the expansion of high-speed broadband and 5G infrastructure. It has deployed fibre optic network hubs in Sarawak, helping to bridge the digital divide and promote greater digital inclusion.
Recently, TM Global announced the data centre expansion of its Klang Valley Data Centre (KVDC) in Cyberjaya and the Iskandar Puteri Data Centre (IPDC) in Johor to deliver a combined IT load of about 20MW to cater to rising domestic and international data hosting needs. Furthermore, it upgraded its northern edge capabilities to bring content closer to users. These initiatives, along with submarine cable expansion, reflect TM Global’s commitment to meeting the growing needs of global carriers, hyperscalers, and technology providers, while supporting the broader growth of the nation’s digital ecosystem.
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LAPSE OF CONDITIONS PRECEDENT LONGSTOP DATE FOR THE SHARE SUBSCRIPTION AGREEMENT WITH DIGITAL NASIONAL BERHAD
On 10 May 2023, TM filed a Bursa Announcement to notify that the longstop date to fulfil all conditions precedent in the Share Subscription Agreement (SSA) for the subscription of a 20% equity stake in Digital Nasional Berhad (DNB) had lapsed. Consequently, TM issued a termination notice to DNB, effective immediately. Nonetheless, TM looks forward to the next process and discussion with the Government and the industry on 5G participation across Phase 1 (towards 80% service coverage by DNB) and Phase 2 (shift to two networks), as announced by the Government on 3 May 2023. TM is committed to continue playing an active role in the 5G implementation, leveraging its nationwide fibre infrastructure, extensive digital platforms (data centre, edge nodes) and rollout experience. In the meantime, TM customers of Unifi Mobile and TM One will continue to enjoy 5G services and solutions, as the 5G wholesale Access Agreement remains in place. TM is committed to serve as the nation’s trusted partner to grow Malaysia’s overall connectivity and digital ecosystem, including 5G. We are committed to shaping a Digital Malaysia through technology that empowers communities, businesses and Government.
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.
TM stays committed to serve customers during full Movement Control Order
As an essential services provider, TM continues its operations subject to FMCO guidelines With the nation going into Full Movement Control Order (FMCO) starting 1 June 2021, Telekom Malaysia Berhad (TM) remains committed to serving the nation as we understand connectivity is especially crucial to our customers during this period. As the safety and health of its employees, contractors and customers continue to be the utmost priority, TM is taking the necessary precaution steps to protect their wellbeing when carrying out their tasks. With the FMCO implementation, TM will continue with Special Working Arrangements for its workforce nationwide until further guided by the Government. TM employees at the frontline and supporting critical functions are given the option of flexible working hours or split working teams. Meanwhile, other employees will continue to work from home utilising digital and online productivity tools available. TMpoint outlets and key partner stores are open for service applications and essential transactions subject to government and local authority regulations. Our service installation and restoration activities remain available for customers with Standard Operating Procedures (SOPs) in place to ensure the safety of both TM personnel and its customers. Commenting on TM's preparedness to serve the nation during the FMCO, Shanti Jusnita Johari, Chief Marketing Officer, TM said, "As the nation's essential service provider and the enabler of Digital Malaysia, we understand the importance of getting connected as more people are working from home, participating in online learning, conducting business via online and keeping the family entertained while staying safely at home. Therefore, we are committed to ensuring all our customer support services remain in operation and taking proactive measures to monitor our network to provide uninterrupted best internet experience for homes and businesses." "As more users are at home during this period and utilisation is expected to increase, customers may need extended support to optimise their WiFi setup at home. unifi customers can book Wi-Fi optimisation services from the unifi Elite team to further enhance their internet experience at home. The first 100 slots are now complimentary and interested unifi home broadband customers can book the slot by completing the online form at unifi.com.my/bookunifielite. Existing unifi customers can also access the self-serve channels at both unifi Community and EasyFix portal which provide customers with tips and guides to tackle their usage experience issues quickly." "Our contact center remains open, primarily for assurance support. Due to the higher volume of interactions during this period, customers are encouraged to utilise our digital channels which are available 24/7 for account-related enquiries, management and payment," added Shanti. unifi currently offers #unifiyourworld that comes with up to RM200/month savings and unifi Mobile 99 is now priced at RM59/month with no contract for existing unifi customers. For business customers, they can sign up for unifi's business packages which now come with high-performance Mesh Wi-Fi and business solutions. Updates on Latest Developments of All TM Customer Service Operations during the FMCO period Digital Channels For more information, query, customer service, subscription and any support related needs, please visit www.unifi.com.my. Customers can also reach out to unifi via our digital channels as follows: myunifi app (available for Android and iOS) unifi portal – unifi.com.my unifi online community forum at community.unifi.com.my Email – help@tm.com.my Facebook – https://www.facebook.com/weareunifi/ Twitter – https://twitter.com/helpmeunifi. TMpoint All TMpoint outlets nationwide (except in Sarawak) are open following the allowed operating hours by the National Security Council and local authority regulations. Only essential transactions are available which include new service applications, payments at kiosks and collection of SIM cards. TM Contact Centres at 100, Live Chat, Social Media and e-mail Operations Hours: 7.00 a.m. to 9.00 p.m. and 24/7 for Live Chat Installations and Restorations All installation and restoration activities at customers' premises will continue with the customer's consent and verification of their household status via MySejahtera app. However, the services are not available in Enhanced Movement Control Order (EMCO) Locality and Home Surveillance Order (HSO) zones. Payment Channels All TM Payment Kiosks at TMpoint outlets are in operation. Alternative cash payment channels are at 7-Eleven, MyNews, Speedmart 99, KK Mart, MyNews and Petronas. Alternative digital payment channels via Autopay, unifi self-care portal at unifi.com.my, myunifi app, online payment channels from any of your preferred bank via JomPAY with TM's biller codes (8888 for unifi Home, 2345 for Streamyx & Voice and 3608 for unifi Mobile) and via e-Wallet (Boost app). TM would like to wish all its customers and stakeholders a safe and healthy stay at home under the FMCO and to remind them to continue to take precautionary measures such as social distancing and good personal hygiene to curb the spread of the virus. The Company will continually monitor for developments on the ongoing situation and adapt its services to help customers, whenever needed as the safety of its employees and members of the public are of paramount importance to us.
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