25 May 2022
TM records steady performance in 1Q2022 with revenue & PATAMI up 2.9% & 4.4%; maintains focus on its growth strategies execution
In the second year of its Transformation, the Group is on track to achieve its 2022 market guidance, focusing on strengthening its core businesses and investing in new growth areas
Telekom Malaysia Berhad (TM) continued its growth trajectory and long-term business sustainability, recording a steady performance in its First Quarter ended 31 March 2022 as compared to the same period last year (YoY).
The Group's operating revenue increased by 2.9% to RM2.89 billion, compared to RM2.81 billion in the same quarter last year, driven primarily by increased demand for voice, Internet and multimedia. Despite rising competition to offer converged solutions among telco and other technology players, TM continued to deliver strong customer growth across its operations.
Capitalising on its core businesses and investing into new growth areas, TM further ramped up its transformation initiatives, delivering profit after tax and non-controlling interests (PATAMI) for the quarter at RM339.9 million or 4.4% higher than the RM325.5 million recorded in 1Q2021. The Group also recorded lower financial costs subsequent to the early redemption of its RM2.0 billion sukuk in March 2021, as well as lower foreign exchange translation losses on borrowings. The Group has applied the Cukai Makmur statutory tax rate accordingly for the current quarter.
Accelerating into the second year of its Transformation, TM brought forward its manpower optimisation to enable earlier realisation of expected benefits to the Group. This, along with foreign exchange impact on trade settlement has led to a 5.0% decrease in EBIT at RM560.4 million for 1Q2022 compared to RM589.7 million in the same quarter last year. Excluding these costs, the Group's underlying EBIT is 14.0% higher at RM650.2 million compared to RM570.5 million in 1Q 2021. Free Cash Flow is lower by 15.1% at RM658.8 million compared to RM775.7 million due to higher CAPEX as the Group continues to invest in business expansion and meeting customers' demands through technology refresh and network delivery, ensuring steady growth.
unifi: Double-digit revenue and subscriber growth
unifi continued its growth performance, recording revenue increase of 10.6% from RM1.25 billion to RM1.38 billion in the current quarter. Sustained by increasing demand from Internet, voice and sales of devices, with cumulative fixed Internet subscribers increasing by 17.5% against the corresponding quarter last year. unifi remains the largest growth contributor for the Group.
unifi will continue to maintain its leadership in fixed broadband and enhance its Fixed-Mobile Convergence (FMC), enriched with TV and streaming content. This reflects its commitment to improve its FMC customer experience with better and seamless service. unifi will also grow its SME digital platform as a one-stop service centre for solutions catering especially to SMEs nationwide.
TM Wholesale (TMW): Higher revenue from increased demand for data services
TM Wholesale (TMW) also recorded a growth performance for 1Q2022, with revenue increasing by 1.2% from RM631.9 million in 1Q2021 to RM639.5 million, mainly contributed by higher revenue from voice and data services. This was underpinned by increasing demand from High-speed Broadband Access (HSBA) and higher International Voice and Data.
To date, TMW continues to enable industry broadband and 4G network via its fibre infrastructure, with the ongoing 5G rollout further strengthening that role. On the international front, it will continue to serve other OTTs and hyperscalers with connectivity and data centres, while regionally, TM Wholesale aspires to establish Malaysia as a digital hub for ASEAN via new submarine cables, enhanced data centre solutions and edge computing.
TM One: Renewed focus on growing B2B digital solutions market
TM One, the Group's enterprise and public sector arm, recorded a 7.4% decrease in revenue from RM925.2 million to RM856.8 million in 1Q2022 due to decline in data services revenue.
Strengthening and growing its B2B digital solutions, TM One has focused its efforts on high potential industry verticals, namely healthcare, manufacturing, education, oil & gas, banking, financial services & insurance (BFSI) and public sector. It has entered a partnership with Tune Protect and Huawei Malaysia that saw Tune Protect becoming the first organisation in Malaysia to host an insurance core system on public cloud (Cloud αEdge).
Commentary and Outlook from Imri Mokhtar, TM Group Chief Executive Officer
"With our economy and borders reopening, TM is powering Malaysia's journey on its road towards recovery, by ensuring the vision of an inclusive and extensive Digital Malaysia becomes a reality.
"Into the second year of our Transformation, we are focused on strengthening our core business while investing into new growth areas to meet customers' demands. In ensuring sustainability in the long run, we continue to grow our profitability to invest and seize opportunities arising from digital acceleration.
"One of these opportunities is in the exciting space of digital solutions and services for enterprises. Building on TM One's existing capability and relationships with enterprises and the public sector, we will deliver speed and agility through our new digital arm Credence: a corporate start-up led by technology leaders.
"unifi continues to better its fixed broadband and Fixed-Mobile Convergence value proposition to improve customer experience, while expanding our offerings to provide quality entertainment to customers at home or on-the-go.
"We have also achieved some key milestones in our sustainability efforts. TM One has successfully secured the Green Electricity Tariff from Tenaga Nasional Berhad for its data centres in Kuala Lumpur, Cyberjaya and Johor Bahru, contributing to a lower carbon footprint as the demand for cloud storage inevitably increases. This is in addition to the existing Green Building Index (GBI) certification earlier obtained for its core data centres. TM's broader ESG commitment also remains consistent with Malaysia's initiatives towards achieving net-zero Greenhouse Gas emission for the country by 2050.
"Meanwhile, TM Wholesale continues to establish Malaysia as a regional digital hub via new submarine cables, edge computing, data centres and supporting international connectivity. On the domestic front, TM Wholesale continues performing its role as the enabler for industry broadband, 4G and 5G network via fibre infrastructure that will transform the nation's connectivity capabilities."
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TM and Huawei collaborate to accelerate 5G commercialisation in Malaysia
Both parties exploring a working mechanism to cover spectrum, business case, ecosystem and key technologies towards empowering Digital Malaysia. Telekom Malaysia Berhad (TM) and Huawei Technologies (M) Sdn Bhd (Huawei) have recently signed a Memorandum of Understanding (MoU) to collaborate in accelerating 5G commercialisation in Malaysia as the country moves towards a Digital Nation. The MoU was signed by both companies at TM-Huawei Tech Summit held recently. Ir. Ts Azizi A. Hadi, Chief Network Officer, TM signed the MoU on behalf of TM while Mr. Zac Chow, Vice President Huawei Malaysia, represented Huawei at the signing ceremony. Commenting on the collaboration, Dato' Noor Kamarul Anuar, Group Chief Executive Officer, TM said, "It is an exciting development for us to collaborate with a global player like Huawei to accelerate the offering of 5G services to Malaysians. As a national telecommunications infrastructure provider of Malaysia's Digital Nation aspirations, 5G technology will complement our existing wired-based offerings, world class connectivity as well as digital infrastructure. It will enable us to deliver more innovative digital solutions to all our customers across various segments. TM via its innovative and comprehensive products and solutions will continue to lay the foundation for Industrial Revolution 4.0 and rolling out 5G nationwide - serving a more digital society and lifestyle, digital businesses and industry verticals, as well as digital Government. This collaboration augurs well for the accelerated deployment of future 5G network, applications and solutions for Malaysian homes, businesses and beyond, in line with our aspiration to power Digital Malaysia." Meanwhile, Michael Yuan, Chief Executive Officer of Huawei said: "TM and Huawei have been working hand-in-hand for 15 years. We have been working together to connect more people than ever before. We are now at the crossroads of digital transformation. Huawei will fully support TM's aspiration to power Digital Malaysia, and will work together with TM to building a better connected and intelligent Malaysia via 5G." Under the MoU, both parties intend to explore on collaborating by leveraging on each other's core expertise and capabilities to explore a working mechanism covering spectrum, business case, ecosystem and key technologies. This would include collaborating for a joint study on 5G spectrum and its evolution; possible joint development of new services concepts and business case of selected 5G use cases which include but not limited to Fixed Wireless Access (FWA), Smart Cities and Vehicle-to-Vehicle or Vehicle-to-Infrastructure (V2X); joint study in the areas of 5G Ecosystem Innovation; and explore future cooperation on full-fledged 5G end-to-end system. Through this collaboration, a joint working group will also be set up to identify areas of copper line services with the aim towards improving customer experience through FWA technology and/or services. "With this collaboration, we further strengthen our role as a national telecommunications infrastructure provider of Malaysia's Digital Nation aspirations, where TM has established the communications backbone of Malaysia with the widest connectivity and convergence network. As a responsible nation-builder, we will continue to serve as a strategic enabler of the National Fiberisation and Connectivity Plan (NFCP), backed by our solid infrastructure towards empowering Digital Malaysia" Dato' Noor Kamarul Anuar concluded.
YAYASAN TM COLLABORATES WITH YAYASAN DIRAJA SULTAN MIZAN TO EMPOWER YOUTHS
KUALA LUMPUR, 22 September 2023 – Yayasan TM (YTM) and Yayasan Diraja Sultan Mizan (YDSM) signed a Memorandum of Understanding (MoU) to empower youth from the B40 socioeconomic group with vital digital entrepreneurship skills for them to thrive and compete in the digital market space. The programme costing approximately RM400,000 is shared between YTM, YDSM and Multimedia University (MMU). The collaboration also involved other parties namely Universiti Malaysia Terengganu (UMT) and Universiti Sultan Zainal Abidin (UniSZA). The signing of the MoU was graced by the esteemed presence of Kebawah Duli Yang Maha Mulia Al-Wathiqu Billah, Sultan Mizan Zainal Abidin. Dato’ Zainal Abidin Putih, Chairman of YTM said, “Through their involvement in the Siswazah Usahawan Digital Terengganu (SISDIT) programme, the participants can acquire holistic entrepreneurship skills and knowledge while earning them the globally acknowledged digital qualification, International Computer Driving Licence (ICDL) Digital Marketing Certification to complete their skill sets. These would greatly benefit them as they enter the job market. YTM remains committed in its efforts to support the nation-building agenda of promoting socioeconomic development among the underserved communities.” YTM was represented by Dato’ Zainal Abidin, while signing on behalf of YDSM was its Board of Trustee member, Dato’ Dr Che Ab Rahim Nik. Meanwhile, MMU was represented by Ir. Prof. Dr. Hairul Azhar Abdul Rashid, Vice President Market Exploration, Engagement and Touchpoints; UMT was represented by its Vice Chancellor, Professor Dato’ Dr. Mazlan Abd Ghaffar while UniSZA was represented by its Vice Chancellor, Professor Dato’ Dr. Fadzli Adam. Amar Huzaimi Md Deris, Deputy Chairman of YTM who is also the Group Chief Executive Officer of TM was also present to witness the ceremony. As part of the collaboration, YTM embarked on SISDIT, offering digital entrepreneurship training to 27 carefully selected students of UniSZA and UMT. This intensive 20-day training took place at MMU Cyberjaya campus, leveraging on the expertise of MMU Cynergy, a wholly owned subsidiary of MMU. The training modules included digital content development, design thinking, business ethics, e-commerce and business model canvas, to further unleash the potential of the participants in digital entrepreneurship. “Each partner in this collaboration will play significant roles in helping the participants succeed in their entrepreneurial ventures by connecting them to opportunities to foster their digital business's development. We hope their success through this programme will encourage their youth peers to take chances and unleash their full potential for a more sustainable living,” Dato’ Zainal Abidin concluded. To date, YTM’s entrepreneurship-related endeavours, including SISDIT, have benefited over 300 entrepreneurs and created new businesses opportunities for marginalised communities, including B40, asnaf and women, nationwide. In line with YTM’s aspiration as a purpose-driven social impact foundation, this continuous effort aims to nurture individual potential in contributing to the positive socioeconomic through digital and technology solutions for the nation.
TM migrating unifi customers to private IP for more seamless connectivity and better security
With the rapid growth of Internet usage, Internet Service Providers (ISPs) worldwide are facing the exhaustion of IPv4 addresses. As such, TM has started migrating its unifi customers to private IP to enable more seamless connectivity and better security. The migration involves its unifi customers subscribing to unifi 30Mbps, 50Mbps and 100Mbps plans and are currently on dynamic public IPv4 Internet Protocol (IP) addresses. These customers are being migrated to private IPs, which will enable them to experience seamless connectivity in a more secured environment. The process will be executed remotely from our end, so the customers involved with this migration need not perform any action at their end. Customers using CCTV IP-Based and known hosting will not be impacted as they will be excluded from the migration exercise. This activity is ongoing, with minimal downtime (if any) of merely between 2 – 5 minutes. Upon completion of the migration, customers’ internet performance will not be affected. All impacted customers are notified in advance. We trust this exercise will provide our unifi customers with enhanced security when browsing the Internet or utilising any online tools and applications. We at TM are continuously upgrading and improving our product offerings to cater to the evolving needs and usage of our customers across all segments.
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