TM posts solid Q3 performance with growth across all segments

• Growth momentum expected to continue in the 4th quarter
• Revenue increased by 12.7%, the highest in last 10 quarters

Delivering another solid quarter in 2022, Telekom Malaysia Bhd (TM) continues to chart a steady growth trajectory with its third quarter ended Sept 30 compared to the same period last year.
 
In a statement, the telco said its group’s operating revenue increased by 12.7% to US$690.7 million (RM3.16 billion), from US$612 million (RM2.80 billion) in 3Q2021, the highest revenue recorded in the last 10 quarters. 

It said the focus on strengthening its core business and operational efficiency proved solid and resilient, capturing continued growth against the backdrop of intensifying competition.
 
Better business cost efficiency from prudent operational spending plus optimisation programmes contributed to the group’s Earnings Before Interest and Taxes (EBIT) reported at US$132 million. 

[RM1 = US$0.222]

This is a 38.2% growth from US$95.6 million in 3Q last year, TM said, adding that its Profit After Tax and Non-controlling Interest (PATAMI) stood at RM265.2 million, decreasing 2.2% from RM 271.3 million recorded last year. 

This is a result of higher taxation pay out and foreign exchange translation loss on borrowings, it said.
 
Continuous investment for growth and improving the experience of customers has been a rallying point for TM. 

The group said it invested capital expenditure at 19.1% of revenue this quarter, amounting to RM603.7 million to meet customers’ demands through fibre expansion, network modernisation and technology upgrades.

Unifi demonstrated a continuous growth trajectory and continued its leadership in fixed-mobile converged (FMC) solutions of fixed broadband, mobile services, digital content and solutions for both consumers and MSMEs. 

It recorded a revenue increase of 7.0% from RM1.31 billion to RM1.40 billion.

Driven by aggressive sales, promotions and loyalty programmes for customers, TM said Unifi grew its fixed broadband subscriber base close to 3 million. 

With 5G now made available, Unifi will leverage this equal playing field to strengthen its position as the preferred provider for FMC, providing the widest and fastest all-in-one solution to meet today’s digital lifestyle, TM noted.

TM One, the group’s enterprise and government sector arm, recorded a 11.9% growth in revenue from RM796.9 million to RM891.9 million in 3Q2022, clocking in a solid performance in the quarter.

Growth was from both enterprise and government sector segments driven by connectivity services and customer projects, TM said. 

It added that TM One inked more collaborations with several organisations to enable their customers’ digitalisation and transformative plans.

TM Wholesale (TMW) on the other hand recorded a stellar performance in 3Q2022, with revenue increasing by 26.0% from RM610.9 million to RM769.9 million, making it the biggest revenue growth contributor for the group in the current quarter. 

This is mainly attributable to higher domestic data and international digital demands from hyperscalers and global carriers within the region, TM said.

It added that more than 5,400 cumulative 4G and 5G fibre backhaul sites were deployed to expand network coverage and accelerate digital implementation nationwide. 

TMW continues to support the industry’s demand for High-speed Broadband Access, delivering a total of more than 670,000 ports for five local broadband providers, it said.

Imri Mokhtar (pic), TM group chief executive officer said the company’s growth momentum is expected to continue for the rest of 2022 from its core business segments - Unifi, TM One and TM Wholesale. 

“We shall continue to invest in our technology capabilities, new growth areas of FMC and digital solutions, and in building capacity and digital talents within TM. This is while staying focused on growing with our customers, as well as continuing our operations cost discipline,” said Imri.

He added that competition in FMC and the digital space is intensifying, therefore TM is strengthening its mobile business with the right strategy and capabilities to take the company into an era of true convergence. 

“This year is indeed the year to build our commercial resiliency to face the anticipated headwinds in 2023 – easing of economic growth, high supply chain cost and more measured customer spending,” he said.