23 Feb 2024
TM Registers Higher Profits in FY2023, Sustaining Resilient Performance
KUALA LUMPUR, 23 February 2024 – Telekom Malaysia Berhad (“TM” or “the Group”), today announced its financial results for the year ended 31 December 2023 (FY2023), with the Group reporting higher revenue and profitability compared to FY2022. This performance reaffirms the Group’s resilience in the competitive market landscape.
During the year under review, the Group registered a higher revenue of RM12.26 billion compared to RM12.1 billion in FY2022 propelled by the strong performance of Unifi and TM Global. Specifically, Unifi’s fixed broadband subscriptions experienced a 3.1% growth, reaching 3.13 million, while TM Global’s revenue grew from heightened demand for domestic and international data services.
The Group’s Earnings Before Interest and Tax (EBIT) remained flat at RM2.09 billion in FY2023 due to higher operational costs. Meanwhile, the Group’s Profit After Tax and Non-Controlling Interest (PATAMI) rose 63.6% from RM1.14 billion to RM1.87 billion due to a lower net finance cost and tax impact.
The Group’s capital expenditure (CAPEX) in FY2023 stood at RM1.9 billion, or 15.9% of its revenue. These investments were primarily aimed at expanding the Group’s network infrastructure nationwide and regional submarine cable system.
TM declared a 2nd interim dividend and final dividend totalling 15.5 sen per share amounting to approximately RM594.9 million, demonstrating its commitment to delivering shareholder value.
Reflecting on the FY2023 performance, Amar Huzaimi Md Deris, TM’s Group Chief Executive Officer said, “I am pleased to share that TM has sustained its performance amidst challenging regulatory landscapes, heightened competition, and evolving market dynamics.
“Our convergence solutions, paired with attractive packages have continued to appeal to our customers, reinforcing our position as the only Fixed Mobile Convergence with quad-play in Malaysia. The ongoing expansion of our nationwide fibre coverage, coupled with the enhancement of our data and network infrastructure, have also contributed to our growth. We remain committed to promoting digital inclusivity and wider digital adoption while addressing the evolving needs of our customers, both domestically and internationally,” said Amar.
“Furthermore, 2023 marked the completion of our initial three-year transformation phase during which we have further solidified our position in the local and global telecommunication landscape. Advancing into the next level of our transformation journey, we are now focused on evolving into a Digital Powerhouse by 2030, while positioning Malaysia as a digital hub for the region. Our commitment aligns with the nation’s aspiration of becoming a fully integrated digital society, ensuring that we continue to play a key role in the era of digital innovation,” Amar concluded.
Unifi maintains leadership in converged solutions
Unifi maintains its leadership in converged offerings of fixed broadband, mobile services, digital content and solutions for both consumers and MSMEs, recording RM5.66 billion in revenue. Unifi’s fixed broadband segment grew 3.1% to 3.13 million subscribers, driven by strategic convergence campaigns and aggressive customer retention efforts.
Unifi’s latest offering, the #Unstoppable UNI5G Postpaid and Mobile Family Plans, is designed to enhance the 5G connectivity experience for Malaysians. The newly launched Unifi TV Originals provides a wide array of unique, diverse and locally tailored content for an enriched experience for Malaysian viewers. These further contribute to the Group’s true convergence proposition, providing better value to all customers.
As a preferred partner to more than 400,000 MSMEs nationwide, Unifi Business continues to accelerate digital adoption by providing tailor-made solutions, offering them the tools and support needed to thrive in the digital economy.
Looking ahead, Unifi will further cement its role as a leader in convergence to deliver unmatched converged digital services.
TM One drives innovative solutions for enterprise
TM One continues to navigate the market complexities while exploring new growth opportunities. Despite decreased revenue to RM3.14 billion in FY2023, its 4Q23 results showed an increase in revenue of 17.3% versus 3Q23, driven by a surge in solution-based customer projects.
TM One has partnered with PLANMalaysia to equip 29 city councils with smart technologies for sustainable and connected urban environment. It was also appointed as the preferred converged digital infrastructure partner for the Sarawak Digital Economy Corporation (SDEC) to materialise aspirations towards the growth of Sarawak’s digital economy.
Moving forward, TM One is poised to remain at the forefront of supporting and enabling the digital infrastructure for both government entities and enterprises. With a focus on innovation and strategic partnerships, TM One is set to play a significant role in Malaysia’s digital transformation journey.
TM Global positions Malaysia as a digital hub for the region
TM Global posted a solid financial performance in FY2023. Its revenue rose 8.7% to RM3.10 billion, primarily from an increase in international data revenue, driven by managed wavelength services for hyperscalers, alongside an uptick in domestic data services.
In the domestic landscape, TM Global continues to expand 5G backhaul sites and High-Speed Broadband (HSBB) Access coverage in accelerating digital inclusivity nationwide. Globally, it recorded a year-on-year 30Tbps bandwidth growth and delivered a mega requirement of more than 35Tbps long-term leased connectivity for US-based hyperscaler.
TM Global will continue to broaden its digital infrastructure solutions and forge strategic alliances with global carriers to position Malaysia as a digital hub for the region, facilitating seamless digital connectivity and services across borders.
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Credence, TM’s new cloud and digital services company, to empower enterprises’ digital capabilities – from infrastructure to insights
Powered by TM as a corporate start-up, Credence will bring new expertise and agility to grow TM’s digital services to support customers’ requirements and capture new opportunities. Kuala Lumpur, 6 July 2022 – Telekom Malaysia Berhad (TM) today launched Credence, a new cloud and digital services company focused on expanding the capabilities of enterprises and the public sector in their digital transformation journey. “With enterprises re-evaluating their capabilities and offerings to respond to today’s increasingly digital demands, TM is poised to become an astute digital solutions provider in addition to its established connectivity leadership position. “TM will empower organisations in the private and public sector to transform with greater efficiency and flexibility while offering a superior return on investment. We recognise that now is an opportune time to leverage on our strengths, address market needs and launch a dedicated company – Credence – that is focused on technology and digital innovation,” said Imri Mokhtar, TM’s Group Chief Executive Officer. “TM will offer a differentiated advantage in how we bring end-to-end digital solutions and services to customers through Credence. Leveraging both local and international technologies as well as expertise, Credence will provide greater and faster time-to-value by understanding local customer requirements and challenges. “In the long run, through our foray into the digital services market, we aim to improve TM’s growth trajectory and unlock significant value for both our customers and stakeholders,” Imri explained. Credence is led by Krish Datta, an experienced technology leader who joined TM in late 2021 to shape its new digital services arm. Leveraging TM’s established resources, infrastructure, and its strong links to enterprises and the public sector, Credence is well-positioned to accelerate Malaysia’s digital transformation journey. “We offer organisations the ability to embark on their digital journey with better predictability, lesser concern and disruption while choosing the best tech solutions that suit their needs and priorities, enabling them to focus on their core business,” said Krish. He explained that Credence will provide capabilities from tech infrastructure to business insights, cloud advisory, IT landscape migration, SaaS, managed services as well as analytics and insights. “Credence aims to deliver outstanding experience for our customers. We are the only company that is able to offer our customers the full end-to-end solutions from infrastructure to insights (I2I). Our approach is to meet customers where they are, discover what their mission-critical goals are, and work with them according to their needs and priorities. “We are also platform and technology-agnostic – putting us in a better position to offer solutions with a stronger customer bias vis-a-vis a vendor bias,” explained Krish. As part of the launch, Credence announced key partnerships with VMware, AWS and Huawei, which enables them to offer a broad range of options to enterprises, customised to their individual growth needs. “We are pleased to announce that Credence is working with VMware to deliver their first sovereign cloud service in Malaysia, keeping in mind the data sovereignty of customers in Malaysia,” said Krish. “Malaysia’s digital-first approach is enabling massive transformation and opportunity for businesses in the country. VMware is working with Credence to help enterprises in regulated industries, and companies in the e-commerce and energy sectors to meet their unique cloud and data sovereignty requirements within Malaysian borders,” said Ajay Turki, Director Cloud Sales, Southeast Asia & Korea, VMware. “We are also enhancing the offerings of TM’s Cloud Alpha Edge to include services, SaaS solutions as well as data insights to be the leading Government cloud service provider,” added Krish. “At its core, however, digital transformation is less about technology and more about people, and the success of organisations depends on developing, cultivating and nurturing the next generation of technologically-skilled professionals. Through Credence, we aim to address the current digital and tech skills gap – making strategic hires from the tech sector as well as transferring similar skillsets from TM to spearhead this new digital start-up. “In this way, we hope to nurture a pipeline of next-generation tech and digital talents, and equip Malaysians for a digital future by upskilling them with digital capabilities, and providing them access to the right data and tools. This will not only benefit organisations but our collective progress as a nation, solidifying our Digital Malaysia aspirations,” concluded Imri.
TM PLEDGES RM4 MILLION FOR FLOOD RELIEF AND RECOVERY EFFORTS
KUALA LUMPUR, 16 December 2024 – TM announced at least RM4 million allocation, including cash assistance, to support immediate flood relief efforts for affected customers, communities, and employees nationwide. This is in support of the Sumbangan Ihsan MADANI initiative, aimed at ensuring timely support for those in need. TM installed complimentary Wi-Fi services at various flood relief centres (PPS) to ensure uninterrupted communication for flood victims and PPS’ administration. At the same time, TM’s network restoration team is working tirelessly to restore services for customers impacted by the recent monsoon flood especially in the East Coast region. This involves efforts to immediately divert key network elements for infrastructure that have been destroyed by the flood to minimise service downtime for the Government, enterprises and consumers. TM understands the challenges faced by the flood victims. Therefore, to ease their hardship, TM is committed to provide additional supports for the affected Unifi Home customers which include: • Free replacement of damaged Customer Premise Equipment (CPE) and network components, • A one (1) month subscription rebate for affected customers, and • An extension of credit terms to 60 days without service suspension. Through its social impact foundation, Yayasan TM (YTM) mobilised medical aid, food and other necessities with the support of its social impact partners. As Co-Secretariat and a member of the GLC/GLIC Disaster Response Network (GDRN) coalition, YTM assisted over 18,400 individuals via various initiatives including the MOF-GDRN Bantu Fund, to assist affected communities. Amar Huzaimi Md Deris, Group Chief Executive Officer of TM, emphasised the company’s dedication during this time of need. “We stand in solidarity with our customers, communities, and employees during these challenging times. Beyond restoring connectivity, our focus is on providing meaningful assistance to those affected, ensuring they can rebuild their lives with greater resilience. “We deeply appreciate the patience and understanding of our customers as we work to restore our networks, despite challenges due to power outages and damaged equipment in certain locations. Rest assured, our dedicated teams are fully committed to resolve these as swiftly as possible. To bolster our efforts, we have deployed the 56 Rejimen Semboyan Pakar Telekom Askar Wataniah, a team of TM volunteers, to provide on-ground assistance, deliver emergency services, and expedite restoration works. “TM is grateful to serve alongside the Ministry of Communications, Malaysian Communications and Multimedia Commission (MCMC), National Disaster Management Agency (NADMA), Malaysia Civil Defence Force (APM) and GDRN members in supporting collective efforts to assist communities in need. We extend our heartfelt thanks to these agencies and social impact partners for their dedication and collaboration in ensuring timely and effective support. “Through these partnerships, we supported more than 28,000 individuals via various disaster relief and preparedness programmes, ensuring faster distribution of aid across the country. We remain steadfast in our efforts to restore connectivity and essential telecommunications services and aiding recovery for those affected by the floods," concluded Amar. Earlier last week, Amar visited flood-affected areas in Kelantan and Terengganu, including the Central Disaster Operations Control Centre (PKOB) in Kota Bharu. During his visit, he handed over additional care packages to be stored at the control centre. These care packages will be mobilised to affected areas and distributed to the flood victims as needed. In support of its employees, TM launched an internal crowdfunding initiative to help provide affected Warga TM with essential home amenities, ensuring they could resume their daily lives as quickly as possible. This initiative aligns with TM's "Ini Cara Kita" culture statement, embodying the spirit of caring and togetherness. Additionally, TM extended financial aid to 131 Warga TM whose homes were damaged by the floods. Early flood aid and damage claims have already been disbursed, with further assistance underway. The company urges everyone to prioritise safety during this challenging season and remains committed to restoring essential services and aiding long-term recovery.
TM calls on members of the public to donate pre-loved devices to the MYBAIKHATI campaign
Three (3) TMpoint outlets in Klang Valley now ready to accept device donations for B40 families Telekom Malaysia Berhad (TM) is supporting MYBAIKHATI, an industry-wide device crowdsourcing initiative aimed to collect and repair used communication devices to be distributed to low income families (B40). TM has set up three (3) of its TMpoint outlets in the Klang Valley as collection points to facilitate the donation drive. The outlets are TM Experience Centre (TMEC) at Menara TM, Bangsar; TMpoint Cyberjaya and TMpoint Shah Alam. The collection points will be progressively expanded nationwide in the near future. Commenting on TM Group's participation, Imri Mokhtar, Group Chief Executive Officer, TM said: "Everyone should have access to digital devices, especially in these times. The MYBAIKHATI campaign aims to provide the B40 community with usable smart devices for digital learning, work and business, so they have the means to weather through this unprecedented period. TM is excited to be part of this industry-wide initiative as together, we can help to alleviate the burden of the underprivileged and at the same time reduce the digital gap. We have kick-started this year-long donation campaign by setting up three (3) of our TMpoint outlets in the Klang Valley as the designated collection points in this pilot phase; so members of the public who are keen to donate can conveniently drop off their devices. We will definitely explore more locations nationwide to enable more people to take part and make their contribution." "We hope our fellow Malaysians, individuals and businesses, can come forth in the spirit of caring and generosity by donating your pre-loved used laptops, chromebooks, 4G-enabled tablets or 4G smartphones. The campaign runs for 12 months, so we hope you have ample time to sift through your belongings or consider a donation as you upgrade the devices for your own families. After making your contribution with us, don't forget to redeem a special token of appreciation for your kind gesture. Please join us in this collective effort towards enabling a more digital society, digital businesses and ultimately, a Digital Malaysia," he added. TM calls for all Malaysians and members of the public, be it individuals or companies to donate their used devices. TM will repair and refurbish devices that meet the terms and conditions with an allocation of up to RM500 for each device. The refurbished devices will then be distributed to eligible families in the B40 segment, through an appointed Non-Governmental Organisation (NGO), or through other various channels including selected "Pusat Internet Komuniti" (PIKs) nationwide. The donated devices that do not meet the requirements of the initiative will be responsibly recycled via the existing e-Waste programme. To be part of this noble initiative, simply follow these simple steps: Make sure your device is in working condition and is complete with its charger. Do make sure that your personal information and data has been completely deleted Bring the device(s) to the designated TMpoint outlets, meet with our staff and fill up the Device Contribution Form as well as the Contribution Acknowledgement Form Place the device(s) in the storage facility provided Redeem a token of our appreciation for your donation For more information on how you can be part of MYBAIKHATI initiative supported by TM, visit www.tm.com.my/mybaikhati.
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