30 May 2024
TM Announces a Positive Start in 1Q 2024, Sustaining its Continuous Growth Trajectory
Q 2024 Key Highlights (vs 1Q 2023)
- Operating revenue grew 1.8% to RM2.84 billion
- EBIT increased 37.5% from RM473.3 million to RM650.9 million
- PATAMI increased 28.7% from RM330.1 million to RM424.8 million
KUALA LUMPUR, 30 May 2024 – Telekom Malaysia Berhad (“TM” or “the Group”), today announced a positive start to the fiscal year, with a strong financial performance for the first quarter ended 31 March 2024 (1Q 2024).
The Group saw its revenue increase by 1.8% to RM2.84 billion, driven by solid performance from TM Global and growth in Unifi’s subscriber base. Correspondingly, Earnings Before Interest and Tax (EBIT) grew 37.5% to RM650.9 million in the quarter under review on the back of lower total Operational Cost.
TM’s Profit after Tax and Non-Controlling Interests (PATAMI) increased by 28.7% to RM424.8 million, demonstrating its sustained profitability.
Meanwhile, the Group’s Capital Expenditure (CAPEX) stood at RM204.0 million, or 7.2% of its revenue. These investments were aimed at expanding the Group’s network infrastructure nationwide and regional submarine cable systems.
Amar Huzaimi Md Deris, TM’s Group Chief Executive Officer said, “Entering 2024, the operating environment remains challenging due to increased competition and evolving market dynamics. Nevertheless, the Group has shown a positive growth trajectory in the first quarter of 2024. This is evidenced by increased revenue, improved profitability, and steady growth in our fixed broadband subscribers, reaffirming our strong position in the market.
“To sustain our positive momentum, we will continue enhancing our retail convergence offerings and value-added solutions in delivering improved customer experience. At the same time, we maintain a strong focus on modernising our data and network infrastructure, as well as enhancing our business-related offerings to meet current and future digital needs.
“Moving forward, as part of our transformative journey towards becoming a Digital Powerhouse by 2030, our priorities over the next few years include growing our core businesses, enhancing beyond connectivity by embedding Artificial Intelligence (AI) and capturing new business growth to meet future demands. In addition, we will continue to optimise costs and enhance profitability to ensure better returns for our shareholders,” Amar concluded.
The Group maintains a positive outlook for the current year, staying aligned with the previously provided 2024 guidance.
Lines of Businesses (LOBs) Performance
Unifi maintains leadership in converged services
Unifi maintained consistent year-on-year (YoY) growth with a 1.8% increase in fixed broadband subscribers, reaching a total of 3.135 million. This is driven by convergence marketing strategies, aggressive sales and customer retention programmes. It recently launched UniVerse, the best convergence plan to date for broadband, mobile, entertainment, and digital lifestyle solutions, designed to enhance connectivity, content and Home Hub needs of today’s customers. For more information about Unifi UniVerse, visit www.unifi.com.my.
During the quarter, Unifi Business, the leading digital solutions partner of over 400,000 Micro, Small and Medium Enterprises (MSMEs) nationwide, partnered with Maybank Islamic Berhad to launch ‘Go Niaga’, a mobile banking bundle to help businesses manage finances and improve income with digital payment options. It also launched e-Pharmacy Solution, a mobile app enabling e-prescriptions via teleconsultation to provide digital inclusion and accessible healthcare for prescribed medications and wellness especially to the underserved communities.
Looking ahead, Unifi will continue to solidify its role as a leader in convergence to deliver unmatched converged digital services.
TM One drives innovative solutions for enterprise and Government
TM One, the enterprise and government sector business solutions arm of TM continues to adapt to market dynamics while seeking new opportunities for growth. During the quarter under review, it recorded a revenue of RM673.0 million.
In February, TM One launched the Innovation Lab and Enterprise 5G Lab to accelerate the realisation of emerging digital services and solutions. These labs bring together the latest technologies, digital leaders, inspiring ideas and collaborative spaces to create tailored solutions for its customers and partners. These facilities were set to further develop key areas like Enterprise 5G and innovative AI-powered industry solutions to help organisations thrive in the digital era.
Moving forward, TM One will continue to strengthen its core connectivity offerings while driving innovation in digital services, expanding partnerships, and developing solutions that empower its customers.
TM Global positions Malaysia as a digital hub for the region
TM Global saw a 12.1% YoY increase in revenue to RM742.8 million in 1Q 2024, fuelled by demand for domestic and international data. It has remained as Malaysia’s preferred network infrastructure provider, catalysing the digital industry, fostering 5G ecosystem and expanding High-speed broadband (HSBB) Access in the country. Globally, it provisioned significant managed wavelength capacity for hyperscalers, connecting key regional data centres. It also recorded substantial growth in Content Delivery Network (CDN) traffic to cater to the demand from digital players, enabling Malaysia as a digital hub for the region.
TM Global recently received recognition in two categories: Telecom Company of the Year – Malaysia, and the Wholesale Company Initiative of the Year – Malaysia, at the Asian Telecom Awards held in Singapore. This is the second consecutive year TM Global has received these accolades, maintaining its leadership as a shaper of the telecommunications landscape in Malaysia and across ASEAN.
TM Global will continue to broaden its digital infrastructure solutions while forging strategic alliances with global carriers to facilitate seamless digital connectivity and services across borders.
YOU MAY ALSO LIKE
TM AND SINGTEL’S NXERA FORM JOINT VENTURE TO DEVELOP NEXT-GENERATION DATA CENTRES
KUALA LUMPUR, SINGAPORE, 18 JUNE 2024 – TM is partnering Nxera, the regional data centre arm of Singtel’s Digital InfraCo unit, in a joint venture to develop data centres in Malaysia starting with a sustainable, hyper-connected AI-ready data centre campus in Johor. This strategic partnership aims to serve the needs of hyperscalers, next-generation AI application providers and enterprises pursuing accelerated digitalisation and cloud in the region. The joint venture is a unique proposition, bolstered by the extensive subsea cable networks of TM and Singtel’s Digital InfraCo which provide global connectivity and enhanced network performance with lower latency and improved reliability. Amar Huzaimi Md Deris, TM’s Group Chief Executive Officer, said, "Establishing a hyper-connected AI-ready data centre marks the next phase in our long-standing partnership with Singtel, leveraging our strengths and commitment to elevate ASEAN as the preferred digital hub destination. TM brings the largest domestic network infrastructure, extensive international subsea cable systems and the largest interconnected DC in Malaysia, a solid backbone for this project. This will serve as a catalyst for high performance computing and lay a solid foundation for the future advancement of cloud and AI applications. This collaboration of two main telcos in the region is unique and has positive impact to the development of digital ecosystem that not only benefit the businesses but also nurturing future talent. Through this partnership, TM continues to demonstrate its dedication to delivering innovative and sustainable solutions, marking a pivotal step in our aspiration to becoming a Digital Powerhouse by 2030.” Bill Chang, CEO of Nxera and Singtel's Digital InfraCo unit, said, "We are excited to enter the Malaysian market with TM as our strategic partner. This collaboration advances our vision to be the region’s leading sustainable, hyperconnected AI-ready data centre platform, supporting businesses with the digital infrastructure needed for the growing demand for cloud, digitalisation and AI. The development of this first data centre campus in Johor, which can be expanded in phases, demonstrates our ability to scale quickly in markets that are important to our customers. With our joint industry expertise and strong track record, we will build and operate one of the most efficient, sustainable and connectivity-rich data centres in Malaysia. In addition to data centres, we will be expanding the submarine cable connectivity between Singapore and Johor to enhance digital connectivity. Our joint venture will also partner institutes of higher learning in Malaysia to nurture talent for our projects and the industry. Our strategy of developing data centre sites with close proximity to our operations in Singapore allow us to capture spill-over demand from our customers and help them scale their business with confidence.” Located in Iskandar Puteri, just 16 km from Singapore, the data centre campus will be the largest to date for both TM and Nxera. It will be built to the latest standards for reliability, security and sustainability while offering the best local and international connectivity. With its close proximity to subsea cable links between Singapore and Malaysia, the data centre will be well-placed to support the increasing demand from both countries’ digitalisation and development initiatives. The initial phase of the data centre is planned for 64MW and can be scaled up to 200MW in response to market demand. This high-power density campus will be able to host large computing and AI capabilities such as requirements by cloud hyperscalers, GPU-as-a-Service providers and features advanced technologies such as liquid cooling to support high-power density workloads and operations efficiently. The data centre will be a LEED-certified (Leadership in Energy and Environmental Design) green building, emphasising its commitment to greater energy efficiency and sustainable practices. As Malaysia’s integrated telco and technology leader, TM will contribute its expertise in the region’s network infrastructure deployment to deliver customised range of wholesale data, connectivity, data centre and platform solutions catering to both local and international needs. Additionally, TM also provides Cloud services via its sovereign Cloud Alpha Edge solution. TM currently operates seven data centres across Malaysia with 2 core data centres located in Klang Valley and Johor. Its entry into the Asia Link Cable Systems (ALC) partnership facilitates the laying of a submarine cable system spanning approximately 7,200km, with an initial design capacity of 24 Terabits/sec. Coupled with the establishment of an international Cable Landing Station at TM Exchange Kuala Sedili, Johor, these serve as vital infrastructure enhancements to accelerate the growth of the data centre industry in the state. Nxera is a rapidly growing regional platform backed by Singtel and leading global investment firm KKR, leveraging its data centre operations in Singapore to expand overseas. Customers can also tap into a host of services such as Singtel’s Paragon cloud orchestration platform and upcoming GPU-as-a-Service. They will be able to orchestrate their AI workloads in a multi-network and multi-cloud environment, serving as a catalyst for greater innovation, entrepreneurship and business excellence. Nxera is developing three new AI-ready data centres in the region in addition to 62MW of existing capacity in Singapore. This includes a new 58MW data centre in Tuas, Singapore and data centres with partners in Indonesia and Thailand. Nxera’s total pipeline capacity is set to increase from its current operational capacity of 62MW in Singapore to more than 200MW in the region in the next three years. The data centres will be served by Digital InfraCo's comprehensive network of subsea fibre-optic cables which provide customers with the best country-to-country connectivity in the Asia Pacific region.
TM and PDRM join forces to ensure a pleasant Raya celebration for all
Op Selamat 13/2018 campaign for the upcoming festive season launched to promote community safety and security Telekom Malaysia Berhad (TM) continues to collaborate with Polis DiRaja Malaysia (PDRM) for community safety and security in conjunction with the upcoming Hari Raya Aidilfitri celebration with the launch of the annual safety campaign “Op Selamat 13/2018” today. This campaign, which marks the 21st consecutive years of collaboration between both parties, aimed at increasing public awareness on road safety and home security this Raya celebration season. The campaign was launched by Tan Sri Dato’ Sri Mohamad Fuzi Harun, the Inspector General of Police. Also present was Tan Sri Dato’ Seri Sulaiman Mahbob, Chairman, TM as well as Datuk Bazlan Osman, Acting Group Chief Executive Officer, TM and other police officers of various ranks. At the event, Tan Sri Mohamad Fuzi flagged off the ‘Traffic Monitoring Team’ and a convoy of motorcyclists and cars to symbolically emphasise the campaign’s message. Speaking at the launching ceremony, Tan Sri Dato’ Seri Sulaiman said, “As a responsible corporate citizen, TM is committed to playing its role in supporting the Government’s efforts towards the nation’s well-being and once again, we continue our long standing collaboration with PDRM for Op Selamat 13/2018 safety campaign this year. The safety of road users and their homes are the utmost important thing during this festive holiday season. This is why we would like to remind all members of the public to adopt proper and courteous driving etiquette as well as be alert of any break-in attempts in your neighbouring community.” “This year also marks the 21st consecutive year of our involvement in this campaign, reflecting our unwavering support towards the Government’s initiatives to reduce the road mishaps rate and to improve home safety during festive season,” he adds. Op Selamat 13/2018 continues to bring safety messages from the previous years’ campaigns where the focus encompasses the safety of Malaysian homes while the residents are away for the festive holiday. This 13th edition of the campaign - aptly themed “Rumah Selamat & Selamat Sampai ke Destinasi” will be running for two (2) weeks beginning from 8 June until 22 June 2018. For this year’s campaign, TM is contributing various necessities for 16 operation centres, for the convenience of the police officers on-duty along the roads identified as accident-prone areas. TM is also contributing car and motorcycle stickers as well as safety booklets which will be distributed to help aide public knowledge on road safety. In fulfilling its unique role towards protecting the national interest with regards to communication infrastructure, TM also works closely with PDRM on preventive measures and initiatives towards curbing cable theft incidents, as it involves public safety particularly when it causes difficulty for local communities to communicate and seek assistance in case of emergencies.
TM Global Wins Best Operator in Emerging Market Category at Carrier Community Global Awards 2024
KUALA LUMPUR, 20 June 2024 – TM Global, the wholesale business arm of TM, Malaysia’s telecommunications leader, bagged the Best Operator in the Emerging Market award category at the prestigious Carrier Community Global Awards (CCGA) 2024. This accolade acknowledges TM Global’s dedication to delivering services in developing regions, emphasising its positive contributions to connectivity and economic growth. Khairul Liza Ibrahim, Executive Vice President of TM Global, said, “This award reinforces our commitment to advancing network infrastructure development and catalysing greater innovation. We have made significant endeavours, including strategic investments in regional subsea cable systems such as Sea-Me-We 6 and the Asia Link Cable System, which enhances global connectivity between ASEAN, Europe and North Asia. “In Malaysia, we are the largest 5G backhaul network infrastructure provider, significantly contributing to the country’s 5G network coverage. We have also established the most extensive Edge Network Facilities throughout Malaysia, bringing content closer to local communities and businesses. These efforts align with TM’s aspiration to become a Digital Powerhouse by 2030 while positioning Malaysia as a digital hub for the region,” she explained. TM Global serves as the strategic gateway for global carriers, enterprises, hyperscalers, OTT providers, and next-generation AI application providers into Malaysia and the ASEAN region. Utilising its expansive network infrastructure, TM Global delivers services such as Multi-Edge Computing and Content Delivery, strengthening its position as a key enabler of digital transformation and global connectivity. The CCGA is a distinguished event that recognises the achievements and innovations of telecom wholesale operators and ecosystem partners worldwide, and are independently judged by a panel of telecom analysts and experts from the industry.
NEWSLETTER
Just drop your details and stay updated with the world of Telekom Malaysia. We promise – no spam!