Telekom Malaysia Berhad (TM) has just published its Q3 2023 report which reveals a 102.9% increase in net profit compared to the same period last year. The Group’s Profit After Tax and Non-Controlling Interest (PATAMI) experienced a surge from RM265.2 million to RM538.2 million, against a revenue of RM3.08 billion which was attributed to lower tax impact and reduced net finance cost.
The strong performance was driven by TM’s Unifi and TM Global businesses. According to TM, they have increased its Unifi Fixed broadband subscription by 4.6% to 3.12 million (Q3 2022 vs Q3 2023), while TM Global’s revenue has increased by 5.0% from RM769.9 million to RM808.6 million due to encouraging demand for domestic and international data services.
Unifi’s net add subscriptions declined to 10,000 in Q3 2023
TM via its Unifi brand is Malaysia’s largest fixed broadband player with over 3.11 million subscribers from both Unifi Broadband and Streamyx. Ahead of the implementation of the Mandatory Standard on Access Pricing (MSAP) where Unifi revised its fibre plans in October, the broadband provider only added 10,000 new subscriptions in Q3 2023.
In Q3 2023, TM reported a total of 3,117,000 subscribers which consists of 3,080,000 Unifi subscriptions and 37,000 Streamyx subscriptions. This marks a mere 0.3% increase from 3,107,000 subscribers in Q2 2023.
TM had enjoyed greater growth in subscriptions for Q3 in the past few years. In Q3 2021, TM announced 3 consecutive record-breaking quarters with the highest no of Unifi net adds of 134,000 fixed broadband subscriptions. Meanwhile, in Q3 2022, it added 64,000 fixed broadband subscriptions.
As a comparison, CelcomDigi’s home fibre business has posted a 27.3% growth in subscriptions from Q2 2023 with an addition of 8,000 subscriptions in Q3 2023. The newly merged telco currently has 121,000 fibre subscribers.
Meanwhile, Maxis’s broadband business has posted a quarter-to-quarter subscription growth of 3.4% in Q3 2023 with an additional 24,000 subscriptions consisting of 23,000 fibre broadband and 1,000 wireless broadband. The green telco now has a total of 730,00 broadband subscriptions which include 645,000 on fibre.
With the latest broadband price revision, it appears that TM’s Unifi Business is facing challenging times ahead due to fierce competition. It has been stepping up its convergence game by introducing new mobile postpaid and 5G phone bundles while expanding its video content and Unifi TV offering. The broadband company has added more streaming platforms such as Netflix and HBO Go to Unifi TV’s offering.
TM to aggressively expand data and network infrastructure
TM’s Capital Expenditure (CAPEX) investment stood at RM1.38 billion or 15.1% of overall revenue in Q3 2023. According to the broadband giant, they have directed its resources towards the nationwide network infrastructure expansion and enhancement of its regional submarine cable system.
Commenting on the Q3 2023 performance, TM Group CEO Amar Huzaimi Md Deris said, “I am pleased to announce the significant strides we have made amidst intensified competition. Our commitment to advancing quad-play convergence services, coupled with the introduction of attractive and competitive packages, enabled us to retain and expand our customer base, solidifying our portfolio as the true convergence champion.”
“Our relentless pursuit of improving mobile coverage nationwide aligns with our dedication to inclusivity, bridging the digital divide, and fostering widespread digital adoption. By ensuring our services are accessible to all, we contribute to creating a more connected and inclusive society.
“Simultaneously, our aggressive expansion of data and network infrastructure is strategically positioned to meet the growing demands of our domestic market and attract more international players. This is a crucial step towards positioning Malaysia as a digital hub for the region, contributing significantly to the creation of a globally connected digital economy.
“TM supports the recently launched New Industrial Master Plan (NIMP) 2030 and we are well positioned to unlock technological opportunities whilst driving innovation for the nation and key economic sectors. As we continue our journey towards humanising technologies, our commitment extends beyond services to the development and refinement of smart innovative solutions. It is not just about technological advancement and improving business outcomes but also about enhancing lives, bringing positive impact to the environment and society.
“In summary, these initiatives underscore our goals to foster digitalisation and emerging technologies. Our comprehensive approach reflects TM’s position as a trailblazer in the evolving landscape, with a clear focus on driving positive change and shaping the future of digital connectivity”, added Amar.
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