Telekom Malaysia Berhad (TM) exceeded all 3 Headline Key Performance Indicators (KPI) for the financial year ended 31 December 2011.
TM delivered a strong revenue growth of 4.1% to RM9,150.7 million as compared to RM8,791.0 million recorded last year. This is attributable to a healthy growth in Internet and Multimedia, which increased by 21.1% to RM2,001 million compared to the same period last year; driven by the increased number of broadband customers, primarily UniFi.
Achievements:
- Meets dividend commitment, total dividend payout of RM700 million; proposing capital repayment via capital reduction of 30 sen per share totalling RM1.07billion
- 12 month Total Return to Shareholders (TRS) of 60.1%
- PATAMI hits RM1.19 billion with higher Operational Profit of RM634.8 million, increase of 12.6%
- Higher EBITDA margin at 33.5%
- Achieved above global average customer satisfaction score of more than 70
- Maintains position as Malaysia’s broadband champion; strong YOY broadband customer growth of 12.3% to 1.92 million
Dato’ Sri Zam went on to comment, “UniFi continued to perform above our expectations in the 4th quarter of 2011. In terms of coverage, we have rolled out to 1.16 million premises covering 78 exchanges. In terms of take up, we have activated 236,501 customers, which represent a net addition of 43.9% or 72,000 customers QoQ.”
To date, TM has expanded the service to more than 1,179,000 premises passed covering 79 exchange areas. Its HyppTV service which is available as part of UniFi’s triple play service now offers 81 channels. As at yesterday, TM has activated more than 283,000 customers.
Together with Streamyx its broadband customer base grew by 12.3%, from 1.71 million in 2010 to 1.92 million in 2011. In line with its strategy to enhance end-users’ experience with seamless quality broadband beyond their homes, TM has grown its WiFi hotspot zones from 10,982 sites as at end of 2010, to 19,799 sites at the end of 2011, a year on year increase of more than 80%.
“ICT and BPO is increasingly becoming a core part of our business. Over the last year, we boosted our efforts in becoming an ICT-BPO powerhouse, primarily in the Enterprise and Government segments. TM also entered into various collaborations with top players in the TelePresence services, cloud computing and the like. This will bring us closer to our aspiration to transform TM into an integrated Information Exchange.” added Dato’ Sri Zam.
TM remains committed to its obligations under the Public Private Partnership (PPP) Agreement with the Government. In 2011, TM successfully exceeded the 1.1 million premises passes coverage. The Company is on track to achieve 1.3 million premises passed by end 2012. In line with TM’s continued commitment to provide fair and equitable opportunities for other service providers, TM has signed with additional two (2) access seekers in 2011 to provide HSBB (Access) service on a wholesale arrangement. TM also signed HSBB services agreement with 11 property developers to deploy HSBB network infrastructure and services to new housing development areas.
ICT/Business Process Outsourcing (BPO) will be one of key strategic focus for the Company this year, in line with the Company’s transformation into an ICT and BPO Powerhouse towards becoming an Information Exchange. Leveraging on its infrastructure, expertise and reach, TM intends to improve its footing in ICT and BPO services for the business/enterprise segment via its ICT arm, VADS Berhad. The next step is to stack up the current services with innovative applications to provide an ever enriching customer experience with TM be it with the consumer products and services or with the business/enterprise offering.
TM is also positioning itself to be the regional IP hub of choice by leveraging on its extensive global network infrastructure and assets to meet increasingly sophisticated demand of global carriers and enterprise customers. TM recently entered into a collaboration to set up a massive distributed global server network that works together to intelligently place content closer to web users. Rich media content will be made available to users on demand, anytime, anywhere. This is in line with plans to expand its data centre footprint aimed at fulfilling the objective of positioning Malaysia as a world-class data centre hub. This will put the Company in good stead to tap future growth opportunities particularly those that will come as a result of the implementation of the Government’s Economic Transformation Programme (ETP).
With a proven track record as the Government’s preferred partner in delivering communications services coupled with its extensive network coverage and collective expertise, TM is well positioned to continue supporting the Government’s agenda in fulfilling the aspiration of the ETP to transform the nation via our involvement in the Entry Point Project (EPP) especially in the key areas of “Business Services” and “Communications, Content and Infrastructure” (CCI).
Against this backdrop, with a promising economic outlook, TM is set to take its stage of growth to the next level. However, with due regard to global economic uncertainty, industry liberalisation, regulatory changes and intensely competitive telecommunication landscape, the Board of Directors expects TM’s business environment for the financial year ending 31 December 2012 to remain positive.
