26 Aug 2024
TM Sustains EBIT Growth in 1H 2024, Declares Higher Interim Dividend of 12.5 sen per Share
1H 2024 Key Highlights (vs 1H 2023)
· Operating revenue remained steady at RM5.74 billion
· EBIT increased by 14.5% to RM1.26 billion
· Fixed broadband subscribers grew by 1.2% to 3.143 million
· Interim Dividend declared at 12.5 sen per share, up from 9.5 sen in the previous year
KUALA LUMPUR, 26 August 2024 – Telekom Malaysia Berhad (“TM” or “the Group”) today announced its financial results for the first half ended 30 June 2024 (1H 2024), remaining resilient amidst a challenging market environment.
The Group recorded a 14.5% growth in Earnings Before Interest and Tax (EBIT), reaching RM1.26 billion compared to RM1.10 billion in the same period last year, driven by continued focus on enhancing operational efficiency and effective cost management. Meanwhile, TM’s operating revenue for 1H 2024 remained steady at RM5.74 billion, reflecting consistent performance.
Profit after Tax and Non-Controlling Interests (PATAMI) in 1H 2024 decreased by 8.6% to RM821.2 million due to a one-off tax credit in 2023. Nevertheless, the Group’s fundamentals remained strong and continued to underpin its growth trajectory. In line with this, TM has declared a higher interim dividend of 12.5 sen per share, amounting to RM479.7 million, an increase from 9.5 sen per share interim dividend declared in the previous year.
Amar Huzaimi Md Deris, TM Group Chief Executive Officer, said, “Our latest Unifi UniVerse continues to excite the market. Its comprehensive suite of convergence offerings provides a seamless experience that meets the diverse needs of digital consumers. As a result, we have seen growth in our customer base, strengthening TM’s position as Malaysia’s true convergence champion.
“We are also advancing Malaysia’s digital infrastructure through the development of the Next Generation Emergency Services 999 (NG999) in collaboration with various Government agencies. Leveraging advanced technologies such as data analytics and AI, this initiative will significantly improve the nation’s emergency response capabilities in replacement of the existing MERS999.
“We proactively explore new business opportunities through strategic partnerships such as the recent collaboration with Singtel’s Nxera to build a sustainable, hyperconnected AI-ready mega data centre in Johor. This initiative will support high-performance computing and future cloud and AI applications for hyperscalers and tech providers. Simultaneously, we remain committed to supporting Malaysia’s 5G ecosystem, ensuring that Malaysians benefit from the latest advancements in connectivity and digital services.
“We are focused on strengthening our core fundamentals, managing costs effectively, and seizing growth opportunities to ensure we stay well-positioned for the future. We remain steadfast in driving our aspiration to become a Digital Powerhouse by 2030, while positioning Malaysia as the digital hub for the region,” said Amar.
Capital expenditure (CAPEX) in 1H 2024 amounted to RM460 million, representing 8.0% of total revenue. The Group plans to ramp up this investment towards the end of the year, focusing on enhancing its network infrastructure both nationwide and regionally. This includes the development of new submarine cable systems and the expansion of data centres.
The Group maintains a positive outlook for the current year, aligning with its 2024 market guidance.
Lines of Businesses (LOBs) Performance
Unifi Maintains Leadership in Converged Services
Unifi recorded a 1.2% increase in fixed broadband subscribers, reaching 3.143 million in 1H 2024, supported by customer acquisition and retention strategies. Unifi also gained positive traction with its latest mobile proposition and will continue improving and adapting its mobile offerings to better meet customer needs.
During the period, Unifi launched UniVerse, a suite of its best convergence offerings for home internet, mobile, entertainment and lifestyle solutions and introduced the newest UNI5G WOW Prepaid offering with unlimited 5G + 4G data with uncapped 5G speed and rewards, catering to needs of today’s digital customers. Unifi’s most recent offer is the limited-time promotion of 200GB 5G Monthly Data Pass for just RM1. This fantastic add-on gives UNI5G Postpaid 39 customers an extra 200GB of high-speed 5G data every month, enhancing their mobile experience significantly. For more information, visit https://unifi.com.my and https://unifi.com.my/mobile/postpaid.
Unifi’s excellence was recognised with several awards including the Best Fixed Business Service Provider and Best Home Broadband Service Provider at the recent PC.com 2024 Readers’ Choice Awards, Ookla's Fastest Wi-Fi Provider in Malaysia award, and the World’s No.1 Fastest 5G Download Speed provider from Open Signal.
TM One Drives Digital Transformation for Enterprises and Government
TM One sustained a positive momentum in 1H 2024, achieving a 2.1% increase in revenue compared to the same period last year, reaching RM1.41 billion amidst a challenging business environment.
During the period, TM One launched the Innovation Lab and Enterprise 5G Lab, collaborative spaces designed to accelerate the realisation of emerging digital services and solutions such as Enterprise 5G and AI-powered industry solutions for both enterprises and government sectors. Additionally, TM One introduced Cybershield Simulation, a cybersecurity product that simulates real-life cyber-attack scenarios, helping organisations enhance their cybersecurity preparedness. On top the NG999 initiative, it has also recently successfully deployed a Private 5G network at PETRONAS LNG Complex in Bintulu, Sarawak in collaboration with the national oil and gas company, – signalling further advancements in connectivity and efficiency for the energy industry.
TM One’s leadership in technology solutions was recognised with the Best Technology Solution Service Provider at the recent PC.com 2024 Readers’ Choice Awards.
TM Global Strengthens Malaysia’s Position as a Digital Hub for the Region
TM Global delivered a steady performance in 1H 2024, with a 0.6% revenue increase to RM1.49 billion, driven by higher revenues from managed wavelength and domestic data. TM Global is expanding its digital infrastructure, including international connectivity and data centre services, to meet the global carriers and hyperscalers’ demands. Key initiatives include the development of a mega data centre in Johor in partnership with Singtel’s Nxera, as well as expansion of its existing Klang Valley Data Centre (KVDC) and Iskandar Puteri Data Centre (IPDC).
It has also made progress in deploying extensive 4G and 5G backhaul sites nationwide and increasing high-speed broadband access in Malaysia, in supporting digital inclusivity across the nation.
TM Global was recognised in multiple awards - Telecom Company of the Year – Malaysia, and the Wholesale Company Initiative of the Year – Malaysia, at the Asian Telecom Awards as well as Best Operator in Emerging Market Category at the Carrier Community Global Awards 2024.
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CONSOLIDATION OF TM’S BUSINESS IN MALAYSIA INTO TM TECH TO STRENGTHEN CONVERGENCE LEADERSHIP AND IMPROVE OPERATIONAL EFFICIENCY
Following the earlier communication on 14 December 2022, Telekom Malaysia Berhad (“TM”) today announced the internal reorganisation of its business in Malaysia into a single operating entity named TM Technology Services Sdn Bhd (“TM Tech”) following the approval of various bodies, including the High Court of Malaysia and the Malaysian Communications and Multimedia Commission. Effective today, 1st March 2023, Telekom Malaysia Berhad will serve as an investment holding company for this single operating entity (TM Tech), along with other wholly owned subsidiaries, covering TM’s international, digital, education, support business and other non-wholly owned subsidiaries. This group in totality will continue to be governed by the current TM’s Board of Directors and managed by the same Senior Management team. The reorganisation into TM Tech – which includes Unifi, TM One and TM Global, amongst others – marks the next phase of TM’s transformation that will reinforce its fixed-mobile convergence (FMC) position, further improve operational efficiencies and deliver a more seamless customer experience. Resource-wise, the reorganisation brings together the diverse talents, facilitating greater cross-functional collaboration and agility through more streamlined and simplified processes. Group CEO of TM, Dato’ Imri Mokhtar explained, “As customer demand, increasing competition and stakeholder expectations reshape the industry, it is timely to consolidate our telco business in Malaysia into a single operating entity that will allow us to serve our diverse customer segments better and quicker, as well as drive operational efficiency.” “We have recently notified all of our valued customers on this internal reorganisation via email and digital letters. At this point, for all payment transactions - the beneficiary name will now be “TM Technology Services Sdn Bhd” instead of “Telekom Malaysia Berhad”. All other payment details remain the same, such as the bank account and JomPAY code,” Imri added. “The success of TM to shape a Digital Malaysia through technology that empowers communities, businesses and Government truly lies in our Warga TM. With majority of Warga TM realigned into this single operating entity, the individual job functions, entitlements and benefits will remain unchanged. Similarly, all of TM’s current obligations in terms of partnerships, vendor and service agreements will remain in effect.” “We believe this reorganisation will strengthen TM’s role in advancing the country’s digital economy and to serve our growing customers in a more cohesive manner. It will reinforce TM’s competitive edge, solidifying our transition towards being a human-centred TechCo,” Imri concluded.
TM One LEAP Summit 2022 poised to advance next-gen enterprise transformation with world-class innovators
TM One’s annual flagship event LEAP Summit returns for a fifth year, anchoring on the theme ‘Enabling Your Next: Innovate and Transform’ TM One, the enterprise and government sector business solutions arm of Telekom Malaysia Berhad (TM), held its high-impact annual flagship event, LEAP Summit 2022 today, aimed at propelling enterprise innovation and transformation as Malaysian businesses take advantage of the nation’s initial economic recovery. The fifth in its series, LEAP Summit 2022 themed ‘Enabling Your Next: Innovate & Transform’, brought together world-class digital experts and over 200 of Malaysia’s top decision makers to better understand how these leaders could unleash their innovation potential and take their businesses to the next level. Imri Mokhtar, Group Chief Executive Officer of TM, in his welcoming address said that increased customer expectations for digital services and platforms are reshaping how enterprises work and conduct their business. He also explained that in order to keep up with these new trends, enterprises must fast-track their transformation to virtualised cloud-based services, leverage digital networks to modernise legacy processes, accelerate workflow efficiency, and strengthen cybersecurity. This will improve business offerings and overall customer experience, leading to increased growth and profitability. Kicking off LEAP Summit 2022 was Netflix’s Co-Founding Executive, Mitch Lowe, who emphasised the need for being brave in order to become a leader of the industry and to remain relevant. Having grown with the entertainment industry from video stores and DVD kiosks, to founding one of the most successful over the top (OTT) content services, Lowe shared that the habit of transformation is built by constantly looking to solve the problems faced by the customers and the industry. Building on this need for organisations to constantly evolve, the event then featured a panel session with Paul Nicholls, Telstra Purple’s Digital Transformation Practice Leader with Telstra’s global partners Airspeeder (the F1 for Electric Flying Vehicle) and Bata Global (world's largest shoe manufacturer), which was moderated by Ching-Fong (CF) Ong, Managing Director & Senior Partner from Boston Consulting Group; who deep dove into real examples of transformation, spanning multiple technologies and geographies, which centres around customers. Bringing the conversation closer to home, industry leaders Datuk Hj Bacho Pilong, Senior Vice President, Project Delivery & Technology, PETRONAS; Fabian Bigar, Chief Executive Officer, MyDIGITAL; Effendy Shahul Hamid, Chief Executive Officer, CIMB Digital Assets; Ir. Dr. Lim Eu Shawn, Chief Global Solutions Officer, Aerodyne Group; also weighed in on transformation within the Malaysian context and its role in future-proofing businesses and the nation to progress from surviving to thriving. This discussion was moderated by Manoj Menon, Founder and Chief Executive Officer of twimbit. Commenting about this year’s event, Shazurawati Abd Karim, Executive Vice President of TM One said, “TM One’s LEAP Summit is part of our continuous commitment to enable organisations to prepare for their next advantage, today and tomorrow. 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Harnessing 5G capabilities to power connected technologies to improve performance and customer experience, real-time detection, instant analysis and action for efficiency, as well as increased safety while reducing down-time through smart solutions, TM One’s 5G Sphere offers the opportunity for enterprises to springboard their transformation through actual case studies and proof of concepts that address their unique business challenges.TM One 5G Solutions for enterprises and the government sector TM One’s latest-in-class showcase during LEAP Summit 2022 also spotlighted 5G-enabled applications for Smart Healthcare, Smart Industry and Smart Cities, along with several digital solutions and services, demonstrating the latest end-to-end technologies available to enterprises and the public sector to spur on their digital growth. Shazurawati explained, “The next phase of smart innovative transformation will be 5G-driven opportunities, with capabilities such as video monitoring, logistics, fleet management, and private 5G networks powering manufacturing, transport, factories, and campuses already on the horizon.” “Moving forward, optimal 5G business solutions will arise from smart collaborations and coalitions among industry leaders, accelerating the next phase of technology adoption by both industry and the country as a whole, and enabling our aspirations for a Digital Malaysia,” she concluded.
Statement on discontinuation of new registration for unifi LITE and Business Broadband
As we embrace the digital lifestyle, we can expect an increase in consumer demand for faster connectivity. To satisfy this need, Telekom Malaysia Berhad (TM) through unifi continues to drive digital connectivity through the accelerated expansion of fibre network nationwide. This is also in support of the Jalinan Digital Negara (JENDELA) action plan to deliver enhanced connectivity experience to all Malaysians. Towards this end, as well as in answering the Malaysian Communications and Multimedia Commission (MCMC)'s call for the provision of high-speed broadband services, unifi has discontinued new registrations for its copper-based broadband services, namely unifi Lite (Streamyx) and Business Broadband. We wish to inform that all our existing unifi Lite and Business Broadband customers will be migrated to the fibre-based unifi service in phases, expected to be completed by 2025. We will reach out to these customers via emails, letters, calls and SMSes, to ensure a seamless migration experience. Until then, all existing unifi Lite and Business Broadband customers will still enjoy their broadband service as is, with no disruption. Should these customers be interested to upgrade their subscription to any of the fibre-based unifi packages that provide more value for their money before the migration exercise, they can reach out to us via 100, Live Chat at unifi.com.my, the myunifi app, or just visit any nearest TMpoint.
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