TM registers higher profits in FY2023, sustaining resilient performance

• FY2023 revenue rose to US$2.56 bil from US$2.53 bil in FY2022
• Announced dividends of 15.5 sen per share, totaling around US$124.5 mil

Telekom Malaysia Berhad (TM or the group) has announced its financial results for the year ended 31 December 2023 (FY2023), with the group reporting higher revenue and profitability compared to FY2022. 

In a statement, the group said this performance reaffirms its resilience in the competitive market landscape.

During the year under review, it registered a higher revenue of US$2.56 billion (RM12.26 billion) compared to US$2.53 billion (RM12.1 billion) in FY2022 propelled by the strong performance of Unifi and TM Global. Specifically, Unifi’s fixed broadband subscriptions experienced a 3.1% growth, reaching 3.13 million, while TM Global’s revenue grew from heightened demand for domestic and international data services.

[RM1 = US$0.210]

The group’s Earnings Before Interest and Tax (Ebit) remained flat at RM2.09 billion in FY2023 due to higher operational costs. Meanwhile, its Profit After Tax and Non-Controlling Interest (Patami) rose 63.6% from RM1.14 billion to RM1.87 billion due to a lower net finance cost and tax impact.

The group’s capital expenditure (Capex) in FY2023 stood at RM1.9 billion, or 15.9% of itsrevenue. These investments were primarily aimed at expanding the its network infrastructure nationwide and regional submarine cable system.

Additionally, TM declared a 2nd interim dividend and final dividend totalling 15.5 sen per share amounting to approximately RM594.9 million, demonstrating its commitment to delivering shareholder value.

Reflecting on the FY2023 performance, Amar Huzaimi Md Deris (pic), TM’s group CEO said, “I am pleased to share that TM has sustained its performance amidst challenging regulatory landscapes, heightened competition, and evolving market dynamics. 

“Our convergence solutions, paired with attractive packages have continued to appeal to our customers, reinforcing our position as the only fixed mobile convergence with quad-play in Malaysia. The ongoing expansion of our nationwide fibre coverage, coupled with the enhancement of our data and network infrastructure, have also contributed to our growth. We remain committed to promoting digital inclusivity and wider digital adoption while addressing the evolving needs of our customers, both domestically and internationally,” he added.

“Furthermore, 2023 marked the completion of our initial three-year transformation phase during which we have further solidified our position in the local and global telecommunication landscape. Advancing into the next level of our transformation journey, we are now focused on evolving into a digital powerhouse by 2030, while positioning Malaysia as a digital hub for the region. Our commitment aligns with the nation’s aspiration of becoming a fully integrated digital society, ensuring that we continue to play a key role in the era of digital innovation,” Amar said.

Unifi maintains leadership in converged solutions

Unifi maintains its leadership in converged offerings of fixed broadband, mobile services, digital content and solutions for both consumers and MSMEs, recording RM5.66 billion in revenue. Its fixed broadband segment grew 3.1% to 3.13 million subscribers, driven by strategic convergence campaigns and aggressive customer retention efforts.

Its latest offering, the #Unstoppable UNI5G postpaid and mobile family plans, is designed to enhance the 5G connectivity experience for Malaysians. The newly launched Unifi TV Originals provides unique, diverse and locally tailored content for an enriched experience for Malaysian viewers. These further contribute to the group’s true convergence proposition, providing better value to all customers.

As a preferred partner to more than 400,000 MSMEs nationwide, Unifi Business continues to accelerate digital adoption by providing tailor-made solutions, offering them the tools and support needed to thrive in the digital economy.

Looking ahead, Unifi will further cement its role as a leader in convergence to deliver unmatched converged digital services.

TM One drives innovative solutions for enterprise

TM One continues to navigate the market complexities while exploring new growth opportunities. Despite decreased revenue to RM3.14 billion in FY2023, its 4Q23 results

showed an increase in revenue of 17.3% versus 3Q23, driven by a surge in solution-based customer projects.

The company has partnered with PLANMalaysia to equip 29 city councils with smart technologies for a sustainable and connected urban environment. It was also appointed as the preferred converged digital infrastructure partner for the Sarawak Digital Economy Corporation (SDEC) to materialise aspirations towards the growth of Sarawak’s digital economy.

Moving forward, TM One is poised to remain at the forefront of supporting and enabling the digital infrastructure for both government entities and enterprises. With a focus on innovation and strategic partnerships, it is set to play a significant role in Malaysia’s digital transformation journey.

TM Global positions Malaysia as a digital hub for the region

TM Global posted a solid financial performance in FY2023. Its revenue rose 8.7% to RM3.10 billion, primarily from an increase in international data revenue, driven by managed wavelength services for hyperscalers, alongside an uptick in domestic data services. In the domestic landscape, TM Global continues to expand 5G backhaul sites and high-speed broadband access coverage in accelerating digital inclusivity nationwide. Globally, it recorded a year-on-year 30Tbps bandwidth growth and delivered a mega requirement of more than 35Tbps long-term leased connectivity for US-based hyperscaler.

TM Global will continue to broaden its digital infrastructure solutions and forge strategic

alliances with global carriers to position Malaysia as a digital hub for the region, facilitating seamless digital connectivity and services across borders.

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