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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The future of 5G begins with TM! #bersamasama5G
The Company is ready to bring 5G to all Malaysians; Becomes the First Telco to Deploy Stand Alone (SA) network As the national telecommunications infrastructure provider of Malaysia's Digital Nation aspirations, Telekom Malaysia Berhad (TM) is embarking on delivering 5G infrastructure to the country by participating in the 5G Demonstration Project undertaken by the Malaysian Communications and Multimedia Commission (MCMC). The demonstration project is for TM to test the new 5G features, explore the 5G technology system and assess the best way to deploy 5G infrastructure nationwide. The Company plans to test the implementation of a converged 5G core network which allows co-existence of Non-Stand Alone (NSA) and Stand Alone (SA) network. SA is the future of the 5G network deployment and this demonstration is crucial to fast track 5G implementation in the country. Towards this end, TM through its enterprise and public sector business solutions arm, TM ONE, recently started its 5G demonstration in Subang Jaya, Selangor together with Majlis Perbandaran Subang Jaya (MPSJ) to test its 5G solutions namely Smart Traffic Light, Smart Safety & Security and Smart Parking. Besides that, TM is also expanding its 5G Demonstration Project in Pulau Langkawi, Kedah with the demonstration of more 5G use cases. The transmission of 5G service in Pulau Langkawi is going live today, where TM is deploying the first 5G SA network in the country. Commenting on the milestone development, Dato' Noor Kamarul Anuar Nuruddin, Group Chief Executive Officer, TM said: "We are very excited to be part of this 5G Demonstration Project which demonstrates our capabilities to deploy 5G in Malaysia and to roll-out the first 5G SA network in the country. These reflect our commitment to accelerate the delivery of 5G services nationwide. The deployment of our tested and proven 5G-enabled smart solutions for the showcase in Subang Jaya and Langkawi are testament of our commitment in accelerating the delivery of 5G services nationwide. This is in support of the Malaysian Communication and Multimedia Commission's (MCMC) efforts in progressing humanity towards improving the quality of lives of the Rakyat. TM, via our innovative and comprehensive products and solutions will continue to lay the foundation for Industrial Revolution 4.0 (IR4.0) and enabling Internet of Things (IoT) – to serve a more digital society and lifestyle, digital businesses and industry verticals, as well as digital Government." TM's aspiration is to deliver efficient and cost effective 5G infrastructure via infrastructure sharing approach, through the access regulations implemented by MCMC. This is by leveraging on its extensive fibre networks, including the submarine cables, telecommunications towers, and Cloud computing as well as ready Data Centres to support the 5G era in Malaysia. In terms of devices and use cases, its wholly-owned subsidiary, TM Research & Development Sdn Bhd (TM R&D), is also developing and experimenting 5G related equipment to get ready for the upcoming 5G. In addition, the Company plans to test and demonstrate the Dynamic Spectrum Sharing feature where it can dynamically share the same spectrum to support different mobile technologies, dynamically. "This approach is expected to minimise duplication of network which will lead to cost reduction, translating the savings to lower prices for consumers/customers, be more environmentally friendly and allow the savings to be channeled for better innovation and improved customer services. We are open and ready to work together with other operators during this demonstration project. True to our position as the national telecommunications infrastructure provider of Malaysia's Digital Nation aspirations, we have established the communications backbone of Malaysia with the widest connectivity and convergence network," added Dato' Noor Kamarul.
Empowering Malaysia’s Youth: Yayasan Telekom Malaysia Expands TM Future Skills Programme
BATU PAHAT, 12 September 2023 – TM, through its corporate responsibility arm, Yayasan TM (YTM), collaborates with two more secondary schools in Peninsula Malaysia to expand its TM Future Skills (TMFS) programme. The programme aims at enhancing digital skills among students from B40 or low-income families by integrating digital technologies into their learning experiences. The newly included schools – SMK Dengkil in Selangor and SMK Tunku Putra in Johor join the programme after the successful launch of the first TMFS school, SMK Gunung Semanggol in Perak last November. These schools were selected because they have the highest percentage of B40 students in their districts and are actively engaged in Science, Technology, Engineering, and Mathematics (STEM) activities. “At TM, we hold a firm belief in the pivotal role of Malaysian youth in propelling the nation’s growth and societal advancement. As an organisation that has been instrumental in the establishment of Digital Malaysia, we remain unwavering in our commitment to nurturing the next generation as drivers of our digital economy and the ongoing Industrial Revolution 4.0 (IR4.0). The TMFS programme fulfils this commitment by equipping students with digital skills, while emphasising on leadership, design thinking, and cognitive abilities,” said Ainol Shaharina Sahar, Director of YTM during the TMFS launching ceremony at SMK Tunku Putra recently. “In addition, we are optimistic that the partner schools will evolve into educational hubs, effectively disseminating the knowledge and skills acquired to neighbouring schools and students. We hope that through this approach, it will ignite the students’ interest in pursuing tertiary education in technology and digital fields, thus empowering them with skills vital for Malaysia’s future workforce,” added Ainol. To enhance the immersive learning experience, YTM is establishing TMFS Digital Hubs at these partner schools. These hubs are equipped with resources such as PocketLab, robotics kits, 3D printers, smart TVs, desktop computers, and digital learning content. This hands-on setup aims to spark students’ interest in digital exploration. Highlighting the comprehensive approach of the TMFS programme, Ainol expressed, “We are delighted to witness the holistic growth within all TMFS Schools, which encompasses the development of diverse skills ranging from urban farming and vocational training to entrepreneurship. As we continue our journey to identify more potential schools nationwide, we envision unearthing more remarkable talents that will contribute to the nation’s growth while aligning Malaysia with the forefront of digital innovation.” The event was also graced by Azman Mashuri, Deputy Director of School Planning & Management Sector 2, Ministry of Education Malaysia, who expressed enthusiasm for such collaborations between the private sector and educational institutions. Azman emphasised the importance of providing exposure to digital technologies in rural schools and predicted that initiatives like TMFS will stimulate students to explore their capabilities beyond conventional academics, subsequently driving an increased interest in STEM-related fields. YTM has remained steadfast in its commitment to promoting STEM-oriented programmes since 2014, encompassing disciplines such as robotics, 3D modelling, coding, and big data analytics. In 2020, these modules coalesced into the comprehensive TMFS programme, meticulously designed to align with the Ministry of Education’s syllabus and the IR4.0. To date, YTM’s STEM-related endeavours, including the TMFS programme, have benefited over 15,000 students and educators across more than 500 schools throughout the nation. This remarkable endeavour is not just nurturing individual futures, but also cementing Malaysia’s position as a digital frontrunner on the global stage.
TM Cooperates with Authorities on Open Manhole Incident in Jalan Abdul Samad, Johor Bahru
TM is deeply concerned about an accident that occurred recently involving a school van and one of our underground manholes at Jalan Abdul Samad, Johor. We are staying updated on the condition of those affected and remain hopeful for their full and swift recovery. The manhole cover was found missing at the time of the incident, and preliminary investigations suggest it was deliberately removed by unauthorised individuals or parties. Our network team has immediately secured the area and closed the manhole to prevent further unauthorised access and ensure public safety. We are fully cooperating with the authorities on their ongoing investigations. Unauthorised access to TM’s infrastructure, such as manholes, poses safety risks and may disrupt essential services relied upon by the community. We urge the public to remain vigilant and report any suspicious activity by calling 999 or visiting the nearest police station. We will continue to monitor the situation and provide further updates as information becomes available.
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