TM posts solid Q3 performance with growth across all segments

KUALA LUMPUR: Telekom Malaysia Bhd (TM) continues to chalk up another solid quarter in 2022 with a steady growth trajectory for the third quarter ended Sept 30, 2022 (Q3’22) compared with the same period last year (y-o-y).

The group’s operating revenue increased by 12.7% to RM3.16 billion, from RM2.8 billion in Q3’21, the highest revenue recorded in the last ten quarters. TM’s focus on strengthening its core business and operational efficiency paid off, capturing continued growth against the backdrop of intensifying competition.

The group’s earnings before interest and taxes (Ebit) was RM604.8 million, a 38.2% growth from RM437.5 million in Q3 last year.

Profit after tax and non-controlling interest (Patami) stood at RM265.2 million, a decrease of 2.2% from RM271.3 million recorded last year, as a result of higher taxation pay out and foreign exchange translation loss on borrowings.

Continuous investment for growth and improving the experience of customers has been a rallying point for TM. The group invested capital expenditure at 19.1% of revenue in Q3 amounting to RM603.7 million to meet customers’ demands through fibre expansion, network modernisation and technology upgrades.

Unifi demonstrated a continuous growth trajectory and continues its leadership in fixed-mobile converged (FMC) solutions of fixed broadband, mobile services, digital content and solutions for both consumers and MSMEs, recording a revenue increase of 7% from RM1.31 billion to RM1.4 billion.

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

Unifi has also expanded its digital content portfolio with more on-demand streaming apps, with Unifi TV on track to become the largest streaming platform in Malaysia by end-2022, with more than 15 streaming apps onboard.

With approximately 400,000 MSME customers, Unifi Business’ digital solutions and programmes aim to accelerate their digital transformation and business growth. On top of connectivity, Unifi Business also unveiled new business solutions to support MSMEs digitisation through cloud adoption, eCommerce Hub, cybersecurity and digital marketing, and were created to be affordable for this segment.

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 Q3’22, 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 One inked more collaborations with several organisations to enable their customers’ digitalisation and transformative plans.

TM Wholesale (TMW) recorded a stellar performance in Q3’22, with revenue increasing by 26% from RM610.9 million to RM769.9 million, making it the biggest revenue growth contributor for the group in Q3. This is mainly attributable to higher domestic data and international digital demands from hyperscalers and global carriers within the region.

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 (HSBA), delivering a total of more than 670,000 ports for five local broadband providers.

“TM’s growth momentum is expected to continue for the rest of 2022 from our 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; while staying focused on growing with our customers, as well as continuing our operations cost discipline,” said TM Group CEO Imri Mokhtar.

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