• TM Global key contributor with 10% revenue growth driven by data services
• 2023 Market Guidance for EBIT of US$388m-US$430m with flat revenue growth

Telekom Malaysia Bhd (TM) recorded a stronger financial performance in the second quarter of the year that ended 30 June 2023, compared to the same period in 2022.

The US$122.6 million (RM568.7 million) earnings are its highest quarterly earnings since the fourth quarter of 2011 when it reported US$128.9 million (RM598.3 million) in net profit. 

It declared a higher interim dividend of 9.5 sen per share equivalent to US$78.3 million (RM363.1 million) to be paid on Sept 29. 

Operating revenue grew 0.3% to RM3.10 billion, propelled by Unifi’s expansion which saw a substantial increase to 3.11 million fixed broadband subscribers. Growth also got a boost from TM Global’s 10.0% revenue growth driven by higher demand for domestic and international data services.

Profit After Tax and Non-Controlling Interest (PATAMI) rose 50.4% from RM378.0 million to RM568.7 million due to lower net finance cost and the recognition of tax credits from unutilised tax losses.

Capital expenditure (capex) allocation for the first half of 2023 stood at RM942.8 million, which accounts for 15.6% of the overall revenue for the expansion of network infrastructure to enhance nationwide coverage. Guidance for 2023 has TM estimating capex at between 18% - 20% of revenue.

Earnings Before Interest and Tax (EBIT) was lower by 10.3% at RM630.0 million from RM702.7 million, due to higher preventive maintenance costs and higher depreciation from revision of asset useful life.

Net profit grew 25.2% to RM898.83 million for the first half ended June 30, 2023 (1HFY2023), from RM717.9 million in the same period last year, while revenue inched up 1.14% to RM6.05 billion, from RM5.98 billion for 1HFY2022. 

Amar Huzaimi Md Deris (pic), TM’s Group CEO said, “We are pleased with this quarter’s performance, which is marked by overall positive results across our lines of business. These achievements further strengthen TM’s growth momentum in facing a more competitive market.”

Amar said TM expects to face a more challenging market in the coming months, but remains confident in its overall positive financial performance as it continues strengthening its core business. “TM is excited by the huge potential of fixed, mobile and lifestyle convergence in the digital market, as well as digital infrastructure and solutions for MSME, enterprise and government sectors, whilst pursuing to capture opportunities from international partners including hyperscalers.

He emphasised that TM will continue to collaborate closely with the Government to deliver on the Digital Malaysia aspiration as a trusted partner to grow Malaysia’s overall connectivity and digital ecosystem, including 5G.

Lines of business performance

Unifi drives growth with enhanced services and market leadership.

Revenue increased 0.5% to RM1.41 billion, driven by growth in fixed broadband subscribers reaching 3.11 million from consumer and Micro Small & Medium Enterprises (MSME) segments.

Reinforcing its market leadership in fibre broadband services, Unifi unveiled its Ultra Gigabit Broadband Plans with 1Gbps and 2Gbps packages designed to empower digital households and expedite the growth of MSMEs.

Unifi also introduced Uni5G postpaid and prepaid all- in-one 4G and 5G mobile plans, enhancing its fixed-mobile convergence proposition.

Unifi TV continued its pursuit of enriching user experiences by integrating popular streaming apps such as Netflix into its diverse portfolio.

Unifi Business launched its Digital Marketing Solution (DMS) to encourage the MSME segment develop stronger brand presence and online visibility.

TM One

TM One experienced a decline in revenue by 11.4% to RM732.0 million in 2Q 2023 as a result of price reductions in connectivity services and lower one-off revenue from customer projects.

To mitigate this, TM One is driving the rapid development of smart innovative solutions for verticals such as smart cities, healthcare, agriculture and industries. TM One is also leading private 5G propositions and solutions across diverse industries spanning across oil & gas, transportation hubs and manufacturing to drive the country’s advancement.

As the largest local cloud provider, TM Cloud Alpha is well positioned as a sovereign hyper-scaled cloud for data residency and locality in Malaysia.

TM One has reinforced its role in shaping Malaysia’s modern urban landscapes by being the strategic partner for smart city low-carbon initiatives with local councils. Along with its growing local and global partnerships, it has been appointed to implement and support various digital transformation programmes.

TM Global

TM Global recorded 10.0% revenue growth from RM739.9 million to RM813.6 million, contributed by higher demand for both domestic and international data services.

TM Global continues to deploy its 4G/5G fibre backhaul rollout and drive greater demand for High Speed Broadband Access (HSBA) ports.

Beyond borders, TM Global has reinforced its position by enriching the platform play services via strategic collaborations with partners on A2P SMS Gateway in Philippines and Content Delivery Network (CDN) Last Mile Delivery in Thailand.

Additionally, TM Global continued to cater to mega bandwidth requirements with dynamic and customised solutions for hyper-scalers as well as global service providers.