TRANSFORMATION INTO ‘NEW TM’
Telco to focus on services convergence and further tap digital aspirations of industries, says acting group CEO
TELEKOM Malaysia Bhd (TM) has set a new medium- to long-term business direction to transform into “New TM” and help turn around the company after a challenging 2018.
Last year, the group saw its net profit plunge to its lowest level since listing.
Acting group chief executive officer Imri Mokhtar said TM would focus on accelerating convergence of services, selling all products and services under one brand, and further tap industries that aim to realise their full digital potential.
Imri said the telco would continue to allocate 18 per cent, or RM2.13 billion, of its revenue for capital expenditure this year.
“We took a hit last year. The changing landscape has resulted in the need to transform. The transformation is much-needed and timely.
“New TM’ would put us on a stronger financial position in the medium- to long-term,” he said in an interview recently.
“The strategy to accelerate convergence remains and will be strengthened into ‘New TM’ that reinforces customer centricity, leading to Digital Malaysia.”
Imri said the telco expects more growth opportunities for its digital transformation solutions, TM One — banking on digital aspirations of industries, such as banking, education, defence and security, public shared services, real estate, health and oil and gas.
“We aim to create value for businesses heading towards Industry Revolution 4.0. We will be bringing connectivity and digital infrastructure for them as we help elevate Malaysia to become a digital nation.
“It is the connectivity or the physical wireless and fixed line infrastructure that underpins other digital infrastructure and services such as big data, digital payment, digital ID, Internet of things and smart city,” he said.
Unifi contributes 45 per cent to TM’s revenue, followed by TM One at 35 per cent) and TM Global 16 per cent.
Due to its growth prospects, Imri does not rule out the possibility of TM One overtaking unifi as the group’s biggest revenue contributor in the years ahead.
TM recorded a net profit of RM153.2 million for the fiscal year ended December 31 last year, down 83.5 per cent from RM929.7 million in 2017, due to the change in operating landscape. It, however, expects to perform better this year.
Revenue last year dropped 2.2 per cent to RM11.82 billion from RM12.09 billion previously.
Imri expects a single-digit drop in revenue this year and earnings before interests and tax to be higher than last year as the industry continues to be challenging.