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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TM & Astro collaborate to deliver high quality digital experience
TM provides Astro with full suite of wholesale infrastructure and connectivity solutions to enable Astro to serve its customers with reliable broadband and content services. Telekom Malaysia Berhad (TM) and Astro Malaysia Holdings Berhad’s wholly-owned subsidiary, MEASAT Broadcast Network Systems Sdn Bhd (Astro) today inked deals to collaborate in delivering a high quality digital experience to all Malaysians. The collaboration also signifies both companies' commitment to support the “Jalinan Digital Negara” (JENDELA) initiative in providing wider broadband coverage and a better experience nationwide. The agreements were signed by Imri Mokhtar, Group Chief Executive Officer of TM and Amar Huzaimi Md Deris, Executive Vice President, TM WHOLESALE while Astro was represented by Henry Tan, Group Chief Executive Officer and Shafiq Abdul Jabbar, Group Chief Financial Officer. Through this strategic collaboration, TM, via TM WHOLESALE, its global and wholesale business arm, will provide Astro with a full suite of infrastructure and connectivity solutions that comprises the whole range of wholesale services inclusive of high speed broadband (HSBB), bandwidth, backhaul and Internet access. This extensive and robust fibre network infrastructure will enable TM together with Astro to provide high-quality and reliable connectivity to their end-users. With TM’s HSBB service, Astro also will be able to provide broadband services to its customers without having the need to build a new infrastructure while extending its coverage to wider areas across the country via a fibre network. As for Internet services, TM’s internet access solution will enable Astro to offer high performance internet connectivity and a comprehensive solution to its customers. To complete the services, TM will also provide Astro with its Content Delivery Network (TM CDN), a newly developed content platform service that delivers seamless, faster and secure digital content. This will enable Astro to strengthen its video streaming efficiency to its current service offerings. Commenting on the collaboration, Imri said: “TM as the leading infrastructure partner for High Speed Broadband wholesale services, leveraged its superior network nationwide to support the industry’s broadband growth. We are also the primary mobile backhaul infrastructure provider for the industry with extensive coverage and capacity. As the digital infrastructure accelerator in Malaysia, we have always been a strong advocate of infrastructure sharing. Thus we are honoured to be given this opportunity to leverage each other’s expertise to provide Malaysians with high quality broadband and content services that we have. This strategic collaboration also demonstrates our commitment to ensure Malaysians are provided with a seamless and “always-on” connectivity experience. We are happy to work with Astro and this is yet another testament to our pivotal role as the enabler of Digital Malaysia aspirations.” Meanwhile, Henry Tan said: “This strategic partnership with TM lays the foundation for Astro to be an internet service provider. Astro’s goal is to provide Malaysians with the best digital experience and broadband value proposition. Leveraging on the strength of TM’s wide HSBB network will enable Astro to realise new revenue streams, scaling our broadband service with content bundles, or standalone broadband and other product lines. This deal gives us more flexibility to offer great value and convenience to our customers.”
TM receives national recognitions for its continous efforts in Energy Management
The Company walked away with four (4) recognitions at the recent National Energy Awards 2020, organised by the Ministry of Energy and Natural Resources (KeTSA). Telekom Malaysia Berhad (TM) was recently bestowed with multiple recognitions for its continuous commitment and best practices in energy management at the National Energy Awards 2020, organised by the Ministry of Energy and Natural Resources (KeTSA). The accolades received by TM were: Rank Category Sub-category Building Winner Category I: Energy Efficiency Energy Management (Small Building) TM Node, Skudai, Johor Bahru Runner-up Category I: Energy Efficiency Energy Management (Large Building) Menara TM, Kuala Lumpur Special Awards Institute of Higher Education Multimedia University, Melaka Special Awards Energy Performance Contracting (EPC) TM Node, Bandar Tun Razak Commenting on the achievements, Badrul Hisham Ahmad, Vice President, Support Business, TM said: "We are humbled and honoured to receive these awards and would like to thank KeTSA for recognising our continued commitment to Energy Efficiency (EE) initiatives, which is part of our overall sustainability agenda. Such initiatives not only provide cost optimisation and increased efficiency, but also contribute towards environment conservation. We understand that while we are advancing towards an increasingly digital economy and lifestyle, ensuring the sustainability of our environment is equally important for future generations. In addition to economic development, TM's role in empowering a Digital Malaysia is also driven by our potential to play our part to combat climate change. Although the ICT sector contributes 2% of global carbon emissions, increasing connectivity offsets the emissions. By providing digital solutions, we enable other sectors of the economy to grow while reducing energy use, travel and greenhouse gas (GHG) emissions. Therefore, the transition towards a digital economy helps achieve global carbon-reduction targets." "As we work to increase connectivity and digital, the necessary network and infrastructure expansion brings upon risks of environmental harm. As a responsible business, TM is implementing strict policies and innovative solutions that reduce the carbon emissions resulting from its operations and infrastructure development. A key way to reducing TM's carbon emissions is by lowering our overall energy consumption. As such, our facilities are supported by Energy Saving Initiatives (ESI), which describes how we can improve energy-efficiency at network and non-network buildings. We also adopt sustainable practices for emissions management that adhere to regulatory standards. We conduct regular monitoring of the air, noise and water of areas surrounding our operations. We strive to consistently comply with the environmental monitoring limits stipulated by the Department of Environment (DoE) thus ensuring that our business does not harm nearby environment and communities. We have been continuously improving on our emissions and consumption policies, objectives, targets and strategies. Additionally, we monitor and measure activities that contribute to our carbon footprint, including energy use and waste production, resulting in a 7.5% reduction in overall GHG emissions for 2019. We also recorded a 7.4% reduction in energy consumption," Badrul elaborated. The annual National Energy Awards (NEA) highlights the development of ideas and best practices in driving the country's sustainable energy sector. The award recognises the efforts of the public and private sectors in energy innovation that manifests positive impact to the nation and all Malaysians. It acknowledges the adopters of energy efficiency technology and renewable energy in driving towards Malaysia's sustainable development aspirations. It is also the Government's strategic move to promote innovation in local technology, research and development (R&D) as well as to create awareness on a broad level across the different facets of society, in line with the country's aspiration to spur energy sector as the new area for economic growth. Previously in 2019, the National Energy Awards also honoured TM for the first time as the winner for Category I: Energy Efficiency under sub-category of Energy Management (Small & Medium Building). The award recognised energy saving initiatives at Menara TM, Melaka which include upgrading of conventional lighting to LED, chillers optimisation, reuse of ablution water for watering plant and installation of motion sensor lighting, among others. For more info on TM's efforts towards sustainability, visit www.tm.com.my/sustainability.
TM R&D collaborates with Maldives’ leading digital services provider, Dhiraagu to bring ewar to businesses in Maldives
EWAR, A.I. driven contactless temperature screening solution made in Malaysia has now entered the international market Telekom Malaysia Berhad (TM), through its innovation arm, TM Research & Development (TM R&D), is expanding the delivery of its Artificial Intelligence (A.I.) driven contactless temperature screening solution – Early Warning, Alert & Response or "EWAR" – to Maldives. For the expansion, TM R&D is working alongside Dhiraagu, the leading and largest provider of telecommunications and digital services in Maldives, to assist local businesses in resuming full operations while maintaining a safe environment by installing EWAR at their premises. This initiative is set to provide businesses in Maldives and their stakeholders with the confidence for business continuity through the provisioning of the complete solution. Commenting on the collaboration, Dr. Sharlene Thiagarajah, Chief Executive Officer, TM R&D said, "We are excited to collaborate with Dhiraagu to introduce EWAR, a reliable and accurate contactless thermal screening solution to businesses in Maldives. As we are facing an unprecedented period, health procedures to curb the Covid-19 pandemic are universal which is why we believe EWAR serves two main purposes – to provide early warning alerts of high temperature efficiently and to minimise human contacts. We believe other countries can also reap the benefits of EWAR to better face this pandemic. We see this as our first step into showcasing how innovative digital solutions developed by Malaysian talents such as EWAR can assist in the fight against COVID-19 at the global front." "As we are navigating through a new normal, we will continue to introduce smart digital solutions that focus on safety and to help fulfil the digital requirements of businesses. This is befitting of our aim to serve a more digital lifestyle and in line with our support for TM's unique role of enabling a more Digital Malaysia," she added. Harnessing their expertise in digital platforms and digital solutions, TM R&D introduced two (2) main products under EWAR, namely EWAR Crowds and EWAR Compact in April. EWAR Crowds is designed to conduct a rapid body temperature screening of approximately 10-15 individuals per second simultaneously at high traffic areas. The solution is non-intrusive and can easily be deployed in locations with mass traffic flow such as offices, shopping complexes, transportation hubs, universities, schools, tourist attractions, airports, immigration centres, and hospitals. EWAR Compact on the other hand is more suitable for one-on-one contactless thermal screening. This helps to eliminate the need for hand-held temperature taking devices which can subsequently minimise long queues and increase efficiency. Both EWAR products also come with cloud-based software and real-time monitoring app which makes this innovative solution unique. If any visitor entering the premises records a higher temperature, an alert will be triggered and a notification will be sent to the mobile device of the designated person in charge. The system also allows storing of individual temperature reports over a cloud system where it can be accessed remotely for tracking or analysis. "As we all are collectively working towards the same goal, health, and safety of our employees, customers, and communities are given the utmost priority. The EWAR solution has been developed with the highest accuracy for thermal screening. We are delighted to be collaborating with TM R&D to bring this complete solution to local businesses towards ensuring business continuity," said Mahmoud Dasser, Chief Marketing Officer of Dhiraagu. Currently, EWAR has been deployed at more than 150 sites across several industry verticals to provide accurate, hassle-free screening of employees and visitors. The sites include the quarantine and treatment centre for COVID-19 cases at Malaysia Agro Exposition Park (MAEPS) in Serdang, large and mid-size office lobbies, 12 schools, hotels, Kuala Lumpur City Hall (DBKL) payment counters, various sales galleries, Gamuda Land construction sites, just to name a few. TM R&D has been growing from strength to strength since 2016, winning seven (7) globally recognised awards over the last two (2) years. With more than 2,800 IPRs and 1,400 digital assets generated to-date, TM R&D's innovations, all developed in-house cut across multiple verticals such as Telco, Retail, Logistics, Agriculture, Healthcare and Education with safety and productivity as the top priority. As the organisation continues to expand beyond connectivity and into new value-added digital and smarter platforms, its role in TM has become more prominent and exciting. For more information about TM R&D and its products and services, please log on to www.tmrnd.com.my. Follow us on LinkedIn (TM Research & Development) for more news and updates.
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