27 Aug 2021
Solid first half 2021 for TM: revenue up +8.2%, EBIT up +29.9%, dividend declared
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First half 2021 Key Highlights (vs first half 2020)
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Telekom Malaysia Berhad's (TM) revenue for the first half of 2021 (1H2021) grew strongly by 8.2% to RM5.57 billion, compared to RM5.15 billion in the same period last year. In a statement today, the company said this achievement was driven by growth across all its customer segments – unifi, TM ONE and TM WHOLESALE.
On the back of this higher revenue and better cost efficiency, Group EBIT rose by 29.9% to RM977.3 million, from RM752.4 million last year. Subsequently, Group PATAMI grew 27.3% to RM544.0 million, from RM427.2 million in the same period last year.
The Company continues to invest in future growth by modernising its network and technology platforms, to deliver the best current and future solutions for its multi-segment customers. CAPEX spending in the first half of the year stood at RM597.0 million or 10.7% of revenue. Of the amount invested, 65% was for network access, 16% for core network, and the balance 19% for support systems.
Fibre broadband of choice – highest ever new unifi customers recorded in 2Q2021
unifi recorded several operational milestones with more than 210,000 new customer activations in the second quarter of 2021 (2Q2021). This is the highest number of unifi activations in a quarter in its 11-year history. unifi achieved an important milestone of 2.0 million customers in May 2021. By the end of June, the overall fixed broadband customer base had gone up to 2.55 million, representing a solid 15% growth over the past 12 months since June 2020.
This growth was enabled by the higher number of ports added in 2Q2021 and wider fibre network coverage, exceeding the targets committed in the JENDELA plan, achieving 138% of its commitment in 1H2021.
unifi also increased its sales and installation capacity to meet strong fibre broadband demand. unifi also saw positive uptake of device bundles with the enhanced unifiYourWorld campaign offering smart lifestyle devices, unlocking the unlimited possibilities to enrich users' digital lifestyle and needs.
unifi brought live streaming of the recent Olympic Games Tokyo 2020 on 13 HD channels for free via unifi PlayTV app and unifi Plus Box, to enable Malaysians to support our athletes competing at the games.
Customer touchpoints and support remains in operation with stricter SOPs
As more Malaysians are working from home, conducting business online, participating in online learning and keeping the family entertained while staying safely at home, TM observed that internet usage went up by 45% since the start of MCO in March 2020.
All customer support services remain in operation with stricter SOPs to continuously serve customers. Customer care lines remain open and attended to over 3.6 million customer interactions in 1H2021.
TMpoint outlets and key partner stores remain open for service applications and essential transactions while adhering to strict SOPs. TM is also expanding and renovating selected TMpoint outlets with localised flavour, self-serve kiosks and implementing many other improvements to enhance its customers' experience.
New service installation and restoration activities remain available for customers with SOPs in place to ensure the safety of both, customers and TM personnel. Notably, TM activated unifi Rovers nationwide to help customers sign up easily.
Due to the higher volume of interactions during this pandemic period, customers are encouraged to use self-serve digital channels such as the unifi portal and myunifi app which are available 24/7 for service registration, service diagnostics, account-related enquiries and payment. A more simplified and personalised digital bill was also introduced for bill payment convenience of customers.
TM ONE is committed to accelerating MyDIGITAL aspirations with cutting-edge digital infrastructure and solutions
TM ONE continues to be the digital enabler and trusted partner for enterprise and public sector customers by providing dependable connectivity and delivering new customer projects in 1H2021. As customers pursue to accelerate their digitalisation adoption, this has translated into new contracts and renewals.
Following its appointment as the sole Malaysian Cloud Service Provider (CSP) under the MyDIGITAL blueprint, TM ONE sees growing demand for its Cloud services from enterprises and government agencies. In addition, TM ONE also served international demand to fulfil hyperscaled requirements as the local data centre provider.
With its complete suite of cybersecurity solutions under TM ONE CYDEC, TM ONE has formed alliances with strong global and local cybersecurity players to further enhance its ability to detect and eliminate cyber threats for enterprise and public sector customers. This will help pave the way for digital trust and cyber resiliency to help nurture a safer and more robust national cyber ecosystem.
TM WHOLESALE strengthens domestically, further builds partnership ecosystem globally
Domestically, TM WHOLESALE continues its growth momentum as the preferred infrastructure partner for High Speed Broadband (HSBB) access services. It also achieved further expansion of infrastructure coverage and capacity for Next Generation Backhaul services for several mobile network operators. TM WHOLESALE also secured bandwidth capacity upgrades for major Domestic Wholesale Data solutions and services.
Internationally, TM WHOLESALE strengthened its partnership ecosystem with more global telcos and hyperscalers for International Data services. TM WHOLESALE also secured more deals with global telcos and hyperscalers for International Ethernet services. It also expanded its digital media delivery network ecosystem with growth from domestic and international digital content players.
Focused on value creation and ESG for sustainable growth
TM continues to focus on Environmental, Social and Governance (ESG) principles of sustainable and ethical business practices in serving the nation:
- Governance: TM is committed to uncompromising integrity. All its suppliers have signed the TM Integrity Pledge and more than 90% of Warga TM have progressively completed the Uncompromising Integrity e-learning module. TM also ensures that its corruption mitigation practices are independently certified - having completed the Anti-Bribery Management System (ABMS) certification and the Organisational Anti-Corruption Plan (OACP).
- Social: TM aims to deliver social impact by ensuring the wellbeing of its Warga TM and the nation. TM is committed to bridging connectivity through the JENDELA plan. TM remains fully supportive of the Government's recovery plan - "Pelan Pemulihan Negara" - via its connectivity, digital infrastructure and solutions as well as various social contributions.
- Environment: TM continuously strives to reduce its annual carbon emissions from electricity usage through the retirement of old networks, implementation of an Energy Management System and improvement of energy-saving practices.
TM is continuously improving these sustainability efforts while at the same time upholding its commitment to its stakeholders.
Imri Mokhtar, Managing Director and Group Chief Executive Officer of TM commenting on the results:
"I am pleased to report that we have recorded a solid performance in the first half of the year and we are on track to meet our 2021 targets in line with market guidance. Coming off an exceptional first quarter, we recorded notable improvements in our 1H 2021 revenue and profitability against the same period last year.
"This was driven by higher revenue achieved by all of our customer segments – unifi, TM ONE & TM WHOLESALE and better cost efficiency. The current nationwide movement control order (MCO) has certainly influenced our business landscape and customer operations, but we are delighted with the momentum of our value programmes and the commitment of our frontliners.
"Our revenue in 1H2021 recorded an increase of 8.2% at RM5.57 billion against RM5.15 billion in the same period last year, driven by revenue growth from all customer segments. Our EBIT has increased by 29.9% from RM752.4 million to RM977.3 million.
Malaysia's economic growth outlook for 2021 continues to be challenging with the prolonged movement restrictions brought about by Covid-19. Notwithstanding the headwinds, our role remains. We will continue to serve the nation by meeting the demand for internet and data, both at the retail and wholesale fronts. This is evident through the acceleration of the number of ports deployed and the fibre network expansion under our Jalinan Digital Negara (JENDELA) commitment, which is well ahead of schedule. We remain steadfast and will leverage our comprehensive connectivity, digital infrastructure and other smart solutions to support the nation's digital aspirations under the MyDIGITAL blueprint.
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TM supports 5G deployment in Langkawi with its Integrated Operations Command Centre
Deployed the Region’s First Stand Alone (SA) Dedicated 5G network Telekom Malaysia Berhad (TM) is fully supportive of the 5G Demonstration Project (5GDP) currently undertaken by Malaysia Communications and Multimedia Commission (MCMC). The Company has already embarked on a total of 11 use cases in Langkawi and deployed the operations of an Integrated Operations Command Centre (IOCC) which is at the heart of 5G implementation in Langkawi. The IOCC, or also known as 5G Command Centre (5GCC), which is equipped with state-of-the-art technology, is an integrated command centre where the data feed and dashboard monitoring of TM 5G network and use cases in Langkawi are centralised. This 5GDP is recording a number of firsts for TM and the country: The first Telco to deploy SA dedicated 5G network in the country and in the region. The first telco in the region to update our Radio Access Network (RAN) and devices with SA dedicated 5G network. The first Telco in the country to achieve 1.5Gbps for 5G speed tests conducted within its 5G use cases sites. Langkawi is the first Smart Tourism Island in the world equipped with 5G Dato’ Noor Kamarul Anuar Nuruddin, Group Chief Executive Officer, TM said: “We fully support MCMC’s 5GDP and we are currently testing the implementation of a converged 5G core network which allows co-existence of Non-Stand Alone (NSA) (5G enabled on current 4G network) and Stand Alone (SA) dedicated 5G network in Langkawi. SA is the future of the 5G network deployment and this demonstration is crucial to fast track 5G implementation in the country. With the implementation of the SA network in Langkawi for the 5GDP, TM is the first Telco that has deployed the first SA dedicated 5G network in the country and in the region. We are also proud to note that 5G speed tests conducted within TM’s 5G use cases sites have achieved up to 1.5Gbps. I’m also pleased to update that TM is the first telco in the region to update our Radio Access Network (RAN) and devices with SA dedicated 5G network.” “For 5GDP in Langkawi, we have deployed the highest number of 5G use cases among the participating telcos and all the 5G network and use cases sites can be monitored via the dashboard at the 5GCC, where our expert, qualified technical team works 24/7 to monitor the operations. It is also linked to the local authorities and emergency response services which allow for the communities as well as tourists to experience a smarter, safer living. In addition, we open the 5GCC for all other Service Providers to deploy their monitoring dashboards so all relevant data can be centralised for collective insights.” Currently, the 5GCC houses the dashboard for the following use cases: Smart Traffic Light Smart Parking Smart Safety and Security Solutions Langkawi Smart Tourism Dashboard (Smart Tourism App and UNESCO 8K VR) Gerbang Langkawi Platform (for Smart Water Management System, Smart Vehicle System, Smart Retail Analytics, Smart Safety Helmet and Geolocation People Safety Solutions) Backed up by analytics, Artificial Intelligence (AI), Internet of Things (IoT) and data-driven insights, the 5GCC is furnished with advanced integrated security features to serve as a security monitoring centre through closed-circuit television (CCTV) cameras being installed at hotspots on the island. It is also equipped with face and vehicle recognition system that will assist authorities in public safety and surveillance as well as with criminal investigation, crime prevention and citizen protection. It also monitors weather sensors, tsunami alarms, wind speed systems that have been installed at TM’s designated 5G use cases sites in Kuah and Cenang. The control centre empowers local agencies in promoting tourism safety and attractions effectively, unravelling businesses growth opportunities for the local and providing a safer and smarter crowd control for tourists that will help drive forward Langkawi as a Smart Tourism Island. The monitoring dashboards provides real-time data and consolidated information from all the use cases, for example traffic, parking and security conditions of the 5G use cases areas in Kuah and Pantai Cenang, water consumption level, retail footfall and customer emotions data, number of incidents and alerts, among others. In addition, the authorities can receive alerts and notifications, such as distress calls and response via a panic button from the closed circuit television (CCTV) poles deployed with the smart safety and security solution, or alerts during emergencies e.g. accidents at the workplace, missing individuals, detection of unhappy customers at retail outlets and detection of dangerous driving. These alerts enable the authorities to mobilise resources swiftly during any undesirable incidents or emergency situations, thereby improving their ability to react and respond to the Rakyat's needs in a timely manner for any emergencies. “As the national telecommunications infrastructure provider of Malaysia’s Digital Nation aspirations, we are honoured to be given the opportunity to establish this 5GCC which demonstrates our expertise and capabilities in delivering 5G services to Malaysians nationwide. We aspire to not only enable the ecosystem but also plans to be a neutral partner for industry players and collaboration partners towards enabling Malaysia’s Digital Economy. This signifies our support for MCMC’s aspiration in progressing humanity towards improving the quality of lives of the Rakyat. TM, via our innovative and comprehensive products and solutions will continue to work closely with the Government and MCMC to lay the foundation for Industrial Revolution 4.0 (IR4.0) and rolling out 5G nationwide to serve a more digital society and lifestyle, digital businesses and industry verticals, as well as digital Government,” he added.
TM lauds the government’s national recovery plan; stays committed to serve customers
Telekom Malaysia Bhd (TM) lauds the Government on the announcement of the National Recovery Plan which outlines the four-phase exit strategy and conditions for Malaysia to overcome the socio-economic impact of the COVID-19 pandemic. TM is fully supportive of the recovery plan that is anchored on three conditions – the number of daily cases reported, the medical healthcare capacity (ICU) and the national vaccination rate. Commenting on the announcement, Imri Mokhtar, Managing Director and Group Chief Executive Officer, TM said: "We welcome the clarity provided by the Government on the National Recovery Plan. It is indeed a necessary response to the serious economic and social impact of the coronavirus pandemic. We hope that through the effective implementation of this plan, the nation will be able to emerge from the COVID-19 pandemic to a reasonable level of normality by year end, revive the economy and place the country on a new growth trajectory." "TM as an essential services provider continues to ensure Malaysians remain connected in the safety of their homes and that all our customer support services remain in operation throughout each phase of the recovery plan. As the enabler of Digital Malaysia, TM is committed to playing our part to support all our customer segments across homes, businesses, industry as well as the public sector with connectivity and digital infrastructure and solutions towards economic recovery. All of us at TM pray for the safety and health of all Malaysians nationwide; stay safe and ensure that we get vaccinated - together may we return stronger," he concluded. TM is taking proactive measures in its operations to ensure homes and businesses stay connected; strictly adhering to the Standard Operating Procedures (SOPs) and guidelines set by the National Security Council (MKN). TMpoint outlets and key partner stores are open for service applications and essential transactions subject to government and local authority regulations. Service installation and restoration activities remain available for customers with SOPs in place to ensure the safety of both TM personnel and its customers. TM customer care lines remain open. Additionally, customers are encouraged to utilise our 24/7 self-serve digital platforms for service registration, service diagnostics, account-related enquiries as well as payment. TM supports the National Immunisation Programme and encourages Malaysians to register for vaccination to ensure the country can achieve herd immunity. TM also runs its own internal vaccination drive and thus far, 65% of Warga TM has registered. TM will also be running an internal campaign to rally its TM Volunteers by participating in the Malaysia Vaccine Support Volunteers (MyVAC) programme for The Special Committee On COVID-19 Vaccine Supply (JKJAV) to assist with the vaccination process at Vaccine Delivery Center (PPV) locations across the country. TM is also offering its suitable venues nationwide for PPV, drive through and mobile unit stations. Today, its Multimedia University Melaka campus begins its operations as a PPV facility for JKJAV. TM also connects PPVs nationwide with internet access services to enable the frontliners, medical teams, volunteers as well as members of the public to stay connected during the vaccination process. More than RM8.0 million has been channeled for nation building initiatives to date; in terms of medical and non-medical humanitarian aid for communities in need during the pandemic. Most recently, TM has also set up Tabung Solidarity COVID-19 TM as a continuation of the employee donation drive last year, which has already raised and disbursed RM800,000 to various causes. Thus far, TM Board members and Warga TM have pledged another RM600,000 for the fund through voluntary salary and allowance deduction. The contribution is matched by the company to total RM1.2 million to date. The donation will be channelled to the government's Akaun Amanah Bencana. TM also continues to support the nation and communities in need through connectivity initiatives such as Jaringan Prihatin, CERDIK and MYBAIKHATI. TM reiterates its commitment to ensure the safety and health of customers and Warga TM with special working arrangements implemented and enhanced SOPs towards business and customer service continuity. The Company will continually monitor for developments on the ongoing situation, adhere to the SOPs under the specific phases detailed out by MKN and adapt its services to help customers, whenever needed as the safety of its employees and members of the public are of paramount importance.
TM’s response to the national crisis and assurance to customers, communities and businesses affected
As a result of the extreme and continuous heavy rainfall since Friday (17 December 2021), some telecommunication services provided by Telekom Malaysia Berhad (TM) have been impacted. A number of telecommunication equipment particularly in Selangor, Negeri Sembilan and Pahang were damaged resulting in service disruption in several areas. At the time of reporting, TM’s National Crisis Command Centre is up and running, and we are closely monitoring our network sites. The flash floods and landslides have caused several of our nodes in the three (3) states to be inaccessible due to high water and unsafe conditions. In the meantime, we have had to shut down power supply and network equipment in some areas as a precautionary measure to ensure the safety of those in the vicinity and minimise any potential risks. We have mobilised our front-liners and as conditions permit, we are actively pursuing network restoration in the flood-stricken zones to minimise any service interruption, ensuring customers remain connected. Our immediate concern is of 50,000 of our valued customers on unifi, streamyx, fixed line and unifi mobile who are affected, and we are working hard to ensure communication services are being safely re-established. Concurrently, the GLC/GLIC Disaster Recovery Network (GDRN) has been activated to provide welfare aid and support to those affected by this disaster. As a start, a total of RM50 million has been allocated for relief initiatives comprising of a matching grant of RM25 million by the Government, while the GLCs/GLICs will jointly contribute another RM25 million. As part of GDRN, which TM co-leads as the Secretariat together with Yayasan Hasanah from Khazanah Nasional Berhad, we are collaborating with the National Security Council (NSC) through NADMA (“Agensi Pengurusan Bencana Negara”) and other agencies to assist in furthering other disaster relief assistance. Together with the members of GDRN, we will mobilise rescue and aid efforts to ensure that basic necessities and healthcare can be provided to those in need. The 56th Royal Signals Telekom Army Reserve Regiment (56 Rejimen Semboyan Pakar Telekom Askar Wataniah) which comprises of volunteers from TM has been deployed on the ground to provide assistance and emergency services involving internet and telephone lines nationwide. “Though the situation remains uncertain, I am grateful for the quick action especially on the part of the TM engineering and customer care team for keeping our customers updated and working towards restoring the much-needed connectivity services. As we brace ourselves in anticipation of worsening conditions, we remain hopeful that Malaysians in need will receive the help they require. Our front-liners will be on the ground around the clock to restore services and bring the impacted States back on its feet,” said Imri Mokhtar, Group Chief Executive Officer of TM.
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