25 Aug 2023
TM Records Stronger 2Q 2023 Financial Performance; Sustaining the Group’s Growth Momentum
KUALA LUMPUR, 25 August 2023 – Telekom Malaysia Berhad (“TM” or “the Group”) recorded a stronger financial performance in the second quarter of the year that ended 30 June 2023, compared to the same period in the previous year.
Its operating revenue grew 0.3% to RM3.10 billion, propelled by Unifi’s expansion which saw a substantial increase to 3.11 million fixed broadband subscribers. The growth was also due to TM Global’s solid 10.0% revenue growth driven by higher demand for domestic and international data services.
Profit After Tax and Non-Controlling Interest (PATAMI) rose 50.4% from RM378.0 million to RM568.7 million due to lower net finance cost and the recognition of tax credits from unutilised tax losses.
TM’s Capital Expenditure (CAPEX) allocation for the first half of 2023 stood at RM942.8 million, which accounts for 15.6% of the overall revenue for the expansion of network infrastructure to enhance nationwide coverage.
Meanwhile, Earnings Before Interest and Tax (EBIT) was lower by 10.3% at RM630.0 million from RM702.7 million, due to higher preventive maintenance costs to better serve our customers and higher depreciation from revision of asset useful life.
TM declared a higher Interim Dividend of 9.5 sen per share. This is a testament of the Group’s positive financial performance and its ongoing commitment to shareholder value.
Commenting on these results, Amar Huzaimi Md Deris, TM’s Group Chief Executive Officer said, “We are pleased with this quarter’s performance, which is marked by overall positive results across our Lines of Business (“LOBs”). These achievements further strengthen TM’s growth momentum in facing a more competitive market.”
“In the coming months, TM expects to face a more challenging marketplace but remains confident in our overall positive financial performance. The Group remains steadfast to continue strengthening its core business to be commercially sustainable whilst also continuing to contribute to the nation’s growth.
“TM is excited by the huge potential of fixed, mobile and lifestyle convergence in the digital market, as well as digital infrastructure and solutions for MSME, enterprise and government sectors, whilst pursuing to capture opportunities from International partners including hyperscalers.
“We also remain committed to continuously invest in expanding our network to enable the nation’s progress towards a Digital Malaysia. TM will continue to collaborate closely with the Government to serve as the nation’s trusted partner to grow Malaysia’s overall connectivity and digital ecosystem, including 5G,” Amar concluded.
LINES OF BUSINESS PERFORMANCE
Unifi drives growth with enhanced services and market leadership
Unifi’s revenue increased 0.5% to RM1.41 billion, driven by growth in fixed broadband subscribers reaching 3.11 million from consumer and Micro Small & Medium Enterprises (“MSME”) segments.
Reinforcing its market leadership in fibre broadband services, Unifi unveiled its Ultra Gigabit Broadband Plans with 1Gbps and 2Gbps packages designed to empower digital households and expedite the growth of MSMEs.
Unifi also strengthened its position by introducing innovative Uni5G postpaid and prepaid all-in-one 4G and 5G mobile plans, enhancing its fixed-mobile convergence value proposition.
Unifi’s lifestyle services arm, Unifi TV, continued its pursuit of enriching user experiences by integrating popular streaming apps such as Netflix into its diverse portfolio. This move bolsters Unifi TV’s value proposition and adds to the variety of content available to users.
The availability of a comprehensive convergence proposition encompassing gigabit fixed broadband, innovative 5G mobile packages and lifestyle services is the only offering of its kind in the industry. This is delivered over the best fibre network, superior 4G network coverage and expanding 5G nationwide footprint that offers elevated connectivity experiences at home and on-the-go.
As a market leader, Unifi Business launched its Digital Marketing Solution (“DMS”) to encourage the MSME segment develop stronger brand presence and online visibility. As the latest addition to its line-up of connectivity and business solutions, DMS complements and augments Unifi Business’ existing offerings and will propel digital adoption among businesses.
Earning further accolades, Unifi Business received the “Best Business Fixed Broadband Service Provider” award from PC.com during the period under review.
TM One Drives Innovation with Smart Solutions and Private 5G Advancements
TM One experience a decline in revenue by 11.4% to RM732.0 million in 2Q 2023 as a result of price reductions in connectivity services and lower one-off revenue from customer projects.
To mitigate this, TM One is driving the rapid development of smart innovative solutions for verticals such as smart cities, healthcare, agriculture and industries. As a trusted digital partner for large enterprises and government, TM One is also leading Private 5G propositions and solutions across diverse industries spanning across oil & gas, transportation hubs and manufacturing to drive the country’s advancement.
As the largest local cloud provider, TM Cloud Alpha remains the preferred local sovereign hyper-scaled cloud for data residency and locality in Malaysia.
It has also reinforced its role in shaping Malaysia’s modern urban landscapes by being the strategic partner for smart city low-carbon initiatives with local councils. Along with its growing local and global partnerships, it has been appointed to implement and support various digital transformation programmes for its customers.
In recognition of its industry excellence across a suite of end-to-end next generation business solutions, TM One received the accolade for "Best Enterprise Telco" from PC.com.
TM Global on track to make Malaysia the preferred digital hub for ASEAN
TM Global recorded a 10.0% solid revenue growth from RM739.9 million to RM813.6 million, contributed by higher demand for both domestic and international data services.
TM Global remains steadfast in solidifying its stature as Malaysia’s preferred network infrastructure provider, catalysing digital industry and 4G/5G ecosystem while simultaneously positioning the country to become a digital hub for ASEAN.
TM Global continues to deploy its 4G/5G fibre backhaul rollout and drive greater demand for High Speed Broadband Access (HSBA) ports, reinforcing its commitment to support the Government’s aspirations for digital inclusivity in the country.
Beyond borders, TM Global has reinforced its position by enriching the platform play services via strategic collaborations with partners on A2P SMS Gateway in Philippines and Content Delivery Network (CDN) Last Mile Delivery in Thailand.
Additionally, TM Global continued to cater to mega bandwidth requirements with dynamic and customised solutions for hyper-scalers as well as global service providers, cementing its significance on the international stage.
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TM inks agreement with DNB to provide fibre connectivity in accelerating rollout of 5G network services nationwide
With a total contract value of RM2 billion over 10 years, the signing of a Fibre Leasing Service agreement with DNB demonstrates TM’s commitment to enable the provision of 5G infrastructure in supporting the Government’s ambitious digital aspiration Telekom Malaysia Berhad (TM) today announces the signing of a Fibre Leasing Service agreement with Digital Nasional Berhad (DNB) to speed up the deployment of the Government-owned 5G network nationwide. Taking on a leading role in enabling a Digital Malaysia, and as the national connectivity and digital infrastructure provider, TM is at the forefront of technology and innovation to support the country as it moves forward to realise a more digital society, digital business, digital industry and digital Government by 2030. The term sheet agreement with a total contract value of RM2 billion over 10 years was duly signed by Imri Mokhtar, Group Chief Executive Officer of TM and Amar Huzaimi Md Deris, Executive Vice President, TM Wholesale while DNB was represented by Augustus Ralph Marshall, Chief Executive Officer and Dushyanthan Vaithiyanathan, Chief Operating Officer. Commenting on the signing, Imri said: “Today’s signing further reinforces the Government’s aspiration of putting in place Malaysia’s digital infrastructure and network. We have always been a strong advocate of infrastructure sharing in providing connectivity services and end-to-end solutions, to enable excellent wireless solutions and services.” DNB will be able to leverage on TM’s extensive fibre and network infrastructure, and subscribe to TM’s 5G RAN-to-Edge Fronthaul and Backhaul solution for the provision of fibre connectivity, enabling DNB to provide 5G network services nationwide. Under the agreement, TM will provide DNB with 5G fibre leasing services for connectivity between DNB’s 5G mobile sites and nodes, leveraging on TM’s domestic fibre cable network spanning over 640,000 km across Malaysia. Prior to this, TM along with other fibre providers in Malaysia had participated in the 5G Fiber Leasing Request for Quotation (RFQ) exercise conducted by DNB in June 2021. “As DNB’s selected partner in implementing the Government’s 5G network rollout plan in Malaysia, the signing of this Fibre Agreement is testament to our advanced network technology and workforce capabilities in delivering fibre solutions throughout the country. Critical in executing this mission is to ensure our network is robust to support the future requirements of 5G and further fuel technological innovation in Malaysia,” Imri added. “In delivering the fibre connectivity for DNB’s 5G network, the local telecommunications vendors and suppliers’ ecosystem shall benefit too, in areas such as engineering services, supply of fibre, accessories, poles, manholes and premise equipment. Based on our current fibre implementation, we expect more than 70% of the work to involve and benefit bumiputera and local companies.” “TM is also excited to utilise DNB’s 5G network to provide 5G services and solutions to our home, SME, enterprise and public sector customers. With the launch of DNB 5G network services yesterday, we will be able to test the 5G network and offer services on a trial basis in selected areas across Kuala Lumpur, Putrajaya and Cyberjaya,” Imri concluded. Today’s signing is in tandem with the implementation of Jalinan Digital Negara’s (JENDELA) action plan and cements TM’s commitment of enabling Digital Malaysia through MyDIGITAL. It is also in support of the Government’s other digital plans encompassing digital connectivity (domestic fiberisation, international connectivity), digital infrastructure (cloud, data centre and cybersecurity) and digital talents (via Multimedia University and TM Digital Academy).
PETRONAS AND TM DRIVE SUCCESSFUL PRIVATE 5G NETWORK DEPLOYMENT AT PETRONAS LNG COMPLEX BINTULU
BINTULU, 9 AUGUST 2024 – Petroliam Nasional Berhad (PETRONAS) in collaboration with TM inaugurated a Private 5G network at the PETRONAS LNG Complex in Bintulu, Sarawak – signalling further advancements in connectivity and efficiency for the energy industry. The event was attended by Minister of Digital Gobind Singh Deo, Deputy Minister of Digital Datuk Wilson Ugak Kumbong, Sarawak Deputy Minister of Utilities and Telecommunications Datuk Liwan Lagang, and Digital Nasional Berhad (DNB), the nation’s 5G network provider. Following the historic launch of Malaysia's first Private 5G network for enterprise at PETRONAS’ Regasification Terminal Sungai Udang (RGTSU) in 2022, the new Bintulu location is one of four of PETRONAS’ sites installed with the technology. The PETRONAS LNG Complex is one of the world’s largest liquefied natural gas (LNG) plants in a single location with a production capacity of 29.8 million tonnes per annum, and deployment of the 5G network is expected to improve productivity and increase operational efficiency across critical production processes. In his speech, Gobind Singh Deo emphasised the role of 5G technology in the energy sector transformation, saying, “5G is amongst the key technologies that is gaining importance in the energy sector. The technology, which offers ultra-high speed coupled with low latency communication between control hubs, production sites and vessels, helps to streamline the growing complexity in operational activities. Increased use of 5G-enabled intelligent systems such as industrial IoT, drones, robotics, extended reality (XR), and artificial intelligence (AI) enhances operational efficiency and safety. “Energy companies around the world are racing to modernise their operations, and I applaud PETRONAS, TM and DNB for taking the lead in digitalising Malaysia’s energy sector.” Meanwhile, PETRONAS Senior Vice President of LNG Assets Abang Yusuf Abang Puteh said, “PETRONAS is positioning itself at the forefront of the global technological race while meeting the evolving demands of the energy landscape. The integration of 5G with the Internet of Things (IoT), Artificial Intelligence (AI), and automation will streamline workflows, increase productivity by automating data collection, while enhancing safety across all levels.” Amar Huzaimi Md Deris, TM’s Group CEO said, “This private 5G deployment is the next phase in TM and PETRONAS’ long-standing partnership to future-proof its businesses for a sustainable future. Leveraging on advanced technologies like AI, the Enterprise 5G application is expected to yield optimum operational efficiencies for its highly secure reliable connection, real-time monitoring and analytics as well as remote maintenance. “Furthermore, this collaboration will further catalyse digital innovation and industry adoption which are key to ensure business resiliency in the future and this intent is also aligned with TM’s aspiration of becoming a Digital Powerhouse by 2030,” he added. Looking ahead, PETRONAS and TM aim to explore opportunities to transform the energy industry through potentially expanding the distribution of Private 5G networks to newer sites for greater integration and efficiency.
Unifi’s New Bundled Plans Unlock Even More Value For Customers
In response to the interest to Unifi’s latest offerings, we wish to clarify on our bundle packages that aims to provide subscribers with more value and seamless experience across Unifi services. This campaign provides multiple benefits to subscribers, offering more value for money, and are geared towards elevating customer experience, including high-speed broadband and content with a diverse selection of streaming apps and TV channels. With the latest addition of Netflix, the new 2Gbps and 1Gbps Unifi Ultra packages include the Unifi TV Ultimate Max Pack (also available separately for all Unifi subscribers at a limited time offer of RM89.90), which gives access to 10 streaming apps such as Netflix, Disney+ Hotstar, Viu, iQiyi, Lionsgate Play, and beIN SPORTS CONNECT as well as more than 70 premium channels. The Ultra packages launched earlier are still available at Unifi Stores nationwide at their original price. Unifi customers have the option to purchase value added services and customise their package offerings. These new packages introduced under the Unifi Ngam campaign delivers more than higher speed broadband and best WiFi. Instead, they focus on giving subscribers more options and greater value for money. With the addition of these new and exciting service bundles, Unifi remains confident in delivering an enhanced experience for our customers broadband and entertainment needs. To find out more about the new package offerings, visit unifi.com.my.
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