23 Nov 2023
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.
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Statement on discontinuation of new registration for unifi LITE and Business Broadband
As we embrace the digital lifestyle, we can expect an increase in consumer demand for faster connectivity. To satisfy this need, Telekom Malaysia Berhad (TM) through unifi continues to drive digital connectivity through the accelerated expansion of fibre network nationwide. This is also in support of the Jalinan Digital Negara (JENDELA) action plan to deliver enhanced connectivity experience to all Malaysians. Towards this end, as well as in answering the Malaysian Communications and Multimedia Commission (MCMC)'s call for the provision of high-speed broadband services, unifi has discontinued new registrations for its copper-based broadband services, namely unifi Lite (Streamyx) and Business Broadband. We wish to inform that all our existing unifi Lite and Business Broadband customers will be migrated to the fibre-based unifi service in phases, expected to be completed by 2025. We will reach out to these customers via emails, letters, calls and SMSes, to ensure a seamless migration experience. Until then, all existing unifi Lite and Business Broadband customers will still enjoy their broadband service as is, with no disruption. Should these customers be interested to upgrade their subscription to any of the fibre-based unifi packages that provide more value for their money before the migration exercise, they can reach out to us via 100, Live Chat at unifi.com.my, the myunifi app, or just visit any nearest TMpoint.
TM reinforces commitment for employee welfare & safety; signs new Collective Agreement with NUTE for 2022-2024
Telekom Malaysia Berhad (TM) signed its twelfth (12th) Collective Agreement (CA) last week, on 24 August 2022, with the National Union of Telecommunications Employees (NUTE) for the period of 2022-2024. Consecutively, the CA was also signed between NUTE and TM's subsidiaries, namely Telekom Sales & Services Sdn Bhd, TM Info-Media Sdn Bhd, GITN Sdn Bhd and TM R&D Sdn Bhd. About 8,000 non-executive employees in Peninsular Malaysia and Labuan were covered by this CA. It includes employment enhancements for various terms and conditions, including salary adjustment and cost of living allowances among others. It is also aimed to enhance and boost employees’ productivity and work performance. Representing TM Group for the CA signing was Imri Mokhtar, Group Chief Executive Officer and Sarinah Abu Bakar, Chief Human Capital Officer while NUTE was represented by its President, Mohd Jafar Abd Majid, and Mohamad Farid Mohamad Daud, General Secretary of NUTE. The signing ceremony was also witnessed by Tan Sri Mohammed Azlan Hashim, Chairman of TM. “The new CA demonstrates TM’s unwavering commitment and strong industrial partnership with NUTE towards the well-being of our employees. Our people – Warga TM, is the impetus behind our achievements, they are the engine driving TM’s performance. It is hoped that the harmonious relationship between both parties will fuel the continuous growth of TM, inculcating a high-performance working culture and realise TM’s aspiration to become a Human-Centred Tech Company,” said Imri Mokhtar, TM’s Group Chief Executive Officer.
Yayasan TM in collaboration with CENDANA transforms Muzium Telekom into engaging public digital arts space as part of art in the city's inaugural KLWKND
Through the marriage of technology and arts, Yayasan TM (YTM) continues its ongoing mission to preserve and celebrate the nation's arts, culture and heritage by transforming Muzium Telekom into an engaging public digital arts space, thanks to a ground-breaking collaboration with the Cultural Economy Development Agency (CENDANA). The collaboration is in support of the agency's Art In The City Programme, via its inaugural KLWKND event. KLWKND is a series of exciting events happening from 25 to 28 November 2021 created to make arts and culture accessible to all walks of life. KLWKND is set to transform downtown KL into a vibrant, truly immersive hub for creativity, arts and culture with various activities planned, all throughout the four (4) day programme including dance, music, opera, fashion, architecture, food, visual arts, design, creative products, traditional crafts, literature, history and more. In amongst the activities, YTM is honoured to be part of KLWKND placing Muzium Telekom as the centrepiece where art meets technology. The 93-year old heritage building will be transformed as SITULAH, a public digital arts showcase. Since 1994, the museum has been showcasing the history and evolution of telecommunications in Malaysia. Befitting the times, YTM aims to reinvigorate this beautiful historic building as an engaging hub that connect the dots across the many facets within the TM Group, showcasing talents from Multimedia University (MMU) students, alumni and faculty in digital, creative and cinematic arts as well as TM's heritage and innovation in telecommunications. True to its collaborative spirit, YTM is working with CENDANA together with Joe Sidek Productions and other esteemed figures in the arts community including gifted visual and performing artists; whilst supporting local Food & Beverage businesses during the festival period and beyond. Muzium Telekom as SITULAH at KLWKND carries the exhibition theme of Traverse – Motions Through Time, a showcase of art and technology traversing without borders across time, mediums and cultures, in a vibrant interdependent ecosystem. As the visitors move through the museum, the artworks will guide them through an exploration into the past, present and future. Addressing the transformation of telecommunication institutions (TM Group, Muzium Telekom and MMU) in the age of digital evolution, contained within four (4) chapters: ENTER, INTER(IN)VENTION, RETROSPECT, and EXPERIENCE. 'Traverse' asks the visitors - how do these historical shifts in the mediation of our perception reflect our beliefs in the function of these institutes in our media society. At 'Traverse – Motions Through Time' while the artists are embracing the new form of art-making, expressing their ideas in a novel and ingenious ways, YTM take the opportunity to inform the public of the emerging creative practices by encouraging public participation, reflection and immersive engagement with the new content produced by MMU students, faculty and alumni. Besides digital and creative arts, TM R&D and TM ONE also showcase their latest technology and innovations. Today, the exhibition hosted a VVIP walkabout, graced by YB Datuk Zahidi Zainul Abidin, Deputy Minister of Communications and Multimedia, accompanied by Dato' Ir. Dr. Abdul Rahim Haji Daud, YTM Board of Trustees Member; Izlyn Ramli, Director of YTM; Dr. Sharlene Thiagarajah, Chief Executive Officer of TM Research & Development (TM R&D); Ainol Shaharina Sahar, Chief Executive Officer of Menara KL; Nor Azmi Mat Said, Chairman of MyCreative Ventures; Junady Nawawi, Group Chief Executive Officer of MyCreative Ventures; Izan Satrina Mohd Sallehuddin, Chief Executive Officer of CENDANA; and Joe Sidek, Director of KLWKND Festival. Holding on to the noble principle that no one gets left behind in this digital age, YTM is exhibiting the extraordinary visual talents of gifted artists in Malaysia for a charity sale during the event. Also taking part are visual artists from Persatuan Pelukis Negeri Perak who will be showcasing the Gutta Percha Trail Exhibition, the history of how a tree native to Malaysia played a crucial part in making the global submarine and telegraph network possible. With the exciting emergence of vast markets for non-fungible tokens (NFTs), YTM is also collaborating with DETIK, a unique Malaysian NFT project team who is organising the NFT-JAM Challenge where digital artists will meet up in the DETIK created Newsantara metaverse. This challenge aims to increase digital literacy reach so that creative communities can participate in the digital economy and earn potential income from their creative arts. This initiative will have presence in the Traverse exhibition and also feature some of the artwork displayed physically and digitally at Muzium Telekom. Commenting on the collaboration, Izlyn said, "As a purpose driven social impact foundation, YTM is committed to the Group's aspiration of enabling a Digital Malaysia via our three pillars of Education, Community and Nation-Building as well as Tourism, Culture and Heritage. The third pillar is dedicated to the sustainable development of Malaysian arts, culture and creative ventures. It is a necessary part for the preservation and celebration of our nation's heritage but also a key foundation to building our future. Creativity and innovation are not just confined to a certain sector; they are applicable across all aspects as well as being a key life skills. This must be nurtured and supported by all stakeholders for the betterment of society." "Malaysia has a wealth of talent, creativity and innovation but it needs that due attention and support to grow further and make an even greater mark in the world. How corporates can support the overall ecosystem should be considered from a strategic view – how they can enhance the scene with the core competencies they have so that the local arts industry creates greater impact and sustainability. YTM's role is in connecting the dots between the youth, talent and creativity to skills development, digital opportunities and collaborative partners; focusing on expanding traditional content and goods to digital platforms and solutions," she added. Meanwhile, as the main organiser, Izan Satrina said, "KLWKND is an integral part of Art In The City key to reach out, restart, revive and rebuild the economy for the arts and culture sector. To successfully implement such efforts, collaboration at all levels amongst the private and public sectors is needed to ensure involvement and ownership of the programme. Therefore, we are proud to partner with YTM and Joe Sidek Productions to build a greater impact for the sector and wrap up the year with a bang. Part of the arts includes us reflecting our history. The exhibition 'Traverse – Motions Through Time' complements this journey." YTM and its partners invite all to come and experience this exciting and immersive digital arts and innovations exhibition, Traverse – Motions Through Time from 25 – 28 November 2021 (10.00 am – 10.00 pm) as part of CENDANA's Art in The City inaugural KLWKND programme. There will also be cool prizes to be won from a special gamification competition feature of the exhibition journey!
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