BUSINESS

TM AIMS TO BECOME A DIGITAL POWERHOUSE BY 2030 — CEO

23/02/2024 09:02 PM

KUALA LUMPUR, Feb 23 (Bernama) -- Telekom Malaysia Bhd (TM) is now focused on evolving into a digital powerhouse by 2030 while positioning Malaysia as a digital hub for the region, said group chief executive officer Amar Huzaimi Md Deris. 

Towards achieving its digital powerhouse aspiration (PWR 2030), the group is focusing on three strategic anchors, namely Pioneer, Win, and Revitalise.

“Pioneer” means TM aims to lead industry growth through digitalisation and sustainability. For “Win”, it plans to maintain its leadership and infrastructure, delivering unparalleled connectivity through initiatives such as 5G and key government projects.

Meanwhile, for “Revitalisation”, the group seeks to nurture people and innovation ecosystem, ensuring that talent is equipped for the challenges ahead.

“In 2024, TM will strive to protect our leadership in the core business and enhance beyond connectivity services for growth and customer stickiness.

“2024 will also see us embarking on a platform ecosystem to enable multiple solutions with our partners, leveraging on our TM Cloud Platform and powered by, among others, artificial intelligence technology,” he told a media briefing here today.

On its market guidance for 2024, TM is projecting a low single-digit revenue growth this year against a 1.1 per cent growth in 2023.

Earnings before interest and tax (EBIT) is expected to be RM2.1 billion-RM2.2 billion in 2024 compared with RM2.1 billion last year; and capital expenditure (capex) is forecast to be between 14 and 18 per cent of total revenue from 15.9 per cent previously. 

“Following our market guidance, we are optimistic that TM is poised for a positive performance in 2024, driven by a strategic initiative boasted by ongoing network and information technology modernisation, together with workforce revitalisation efforts across the organisation,” Amar Huzaimi said. 

In a filing with Bursa Malaysia today, TM disclosed that its net profit surged 63.6 per cent to RM1.87 billion for the financial year ended Dec 31, 2023 (FY2023) from RM1.14 billion in FY2022 due to lower net finance cost and tax impact.

Revenue rose to RM12.26 billion in FY2023 from RM12.12 billion previously, propelled by the strong performance of Unifi and TM Global.

The group said Unifi’s fixed broadband subscriptions experienced a 3.1 per cent growth, reaching 3.13 million, while TM Global’s revenue grew from heightened demand for domestic and international data services.

The group’s capex in FY2023 stood at RM1.9 billion or 15.9 per cent of its revenue, which was primarily aimed at expanding the TM’s network infrastructure nationwide and regional submarine cable system.

The group's EBIT remained flat at RM2.09 billion in FY2023 due to higher operational costs.

TM also declared a second interim dividend and final dividend totalling 15.5 sen per share, amounting to a total payout RM594.9 million. 

In the fourth quarter of FY2023, TM’s net profit soared by 170.6 per cent to RM433.53 million from RM160.18 million a year earlier, while revenue improved by 5.1 per cent to RM3.13 billion compared to RM2.98 billion previously. 

The better performance was mainly due to the increase in data, Internet and multimedia services, as well as other telecommunication services, it said. 

-- BERNAMA

 

 


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