Telekom Malaysia (TM) announced its third quarter 2020 (3Q20) financial results late last month. The largest Internet Service Provider (ISP) in Malaysia reported a total of 2.26 million broadband subscribers as of September 2020, up from 2.23 million it had in 2Q20. It added 37k new subscriptions to its fixed broadband subscriber base, including unifi, between July, August and September 2020.
The fixed broadband service provider now has 1.65 million unifi Home Broadband subscribers, adding 97k new subscribers in 3Q20, up from 1.55 million in 2Q20. ARPU for unifi Home Broadband dropped by -RM2 to RM148.
There are now 616k Streamyx subscribers, down from 676k in 2Q20. The ISP lost 60k Streamyx subscribers between July, August and September 2020. APRU improved to RM92 vs RM90 in 2Q20.
TM did not reveal the latest number of its unifi Mobile subscriber base.
“We are seeing unifi gaining momentum, posting a 6.3% growth to 1.65 million subscribers, with our total broadband customer base now at 2.26 million. We achieved the highest convergence penetration (of three services or more) in TM households since 2018, of 58%, as more Malaysians embrace digital living-working in this new norm,” said Imri Mokhtar, Group Chief Executive Officer, TM
Telekom Malaysia said its Network remained stable throughout Conditional Movement Control Order (CMCO), “as a result of continuous network optimisation.”
“This is despite traffic utilisation surging between 30% to 50% depending on peak hours, from March 2020 to November 2020 due to more Malaysians working from home.”
3Q2020 QoQ Key Financial and Operational Highlights (Quarter-on-Quarter (QoQ) comparison, except as noted), according to TM:
- Group Revenue grew 3.8% to RM2.69 billion from RM2.59 billion recorded in 2Q2020.
- Group Reported Earnings Before Interest and Tax (EBIT) increased by 7.0% QoQ to RM456.2 million, from RM426.3 million in 2Q2020.
- Group Reported Profit After Tax and Non-controlling Interests (PATAMI) rose 19.9% QoQ to RM329.5 million compared to RM274.7 million.
- The total capital expenditure (CAPEX) for 3Q2020 stood at 14.9% of revenue or RM400.0 million.
Despite these unprecedented times, TM said its Group Revenue continues to increase QoQ recording a resilient 3.8% growth to RM2.69 billion from RM2.59 billion recorded in 2Q2020 on the back of higher revenue from voice, internet and data services.
Group EBIT for 3Q2020 increased by 7.0% QoQ to RM456.2 million, from RM426.3 million in 2Q2020, on the back of lower operating cost, “from the Group’s continued momentum from its cost optimisation programmes”. This subsequently led to a 19.9% increase in Group PATAMI from RM274.7 million in the preceding quarter to RM329.5 million.
In 3Q2020, the company invested 14.9% of revenue in CAPEX amounting to RM400.0 million – in line with guidance – as it continued to optimise its network and sweat its assets. Of the amount invested, 50% was for network access, 17% for core network, and the balance 33% for support system.
“We are pleased to report another quarter of growth across all key financial metrics – revenue and profits – despite the challenging environment in Q3. Our efforts in cost optimisation continue to yield results with a healthy EBIT and a strong PATAMI. As we enter the ninth month of the Covid-19 pandemic, our priority continues to be the safety and health of our ‘Warga TM’ while continuously delivering connectivity and solutions excellence to our broad customer base.” Imri said.