Mohammed Azlan says that besides the economic challenges, regulatory developments would likely have a significant impact on the group’s business in 2023. — Bloomberg
PETALING JAYA: Telekom Malaysia Bhd
(TM) will focus on enhancing its efficiency and productivity as the group navigates the challenging operating environment this year.
The telecommunications giant says it expects the anticipated global economic slowdown in 2023 to have an impact on the industry as a whole. In addition, the sector will likely see an increase in the cost of doing business.
TM chairman Tan Sri Mohammed Azlan Hashim said the group was cognizant of the need for continuous innovation in order to remain competitive in the face of these challenges.
“We remain confident in our ability to navigate these challenges by focusing on greater efficiency and productivity,” he said in his message for the company’s 2022 Annual Report, which was released yesterday.
“Our ability to evolve and adapt has been instrumental in our success thus far and we remain committed to exploring new opportunities and staying ahead of the curve,” he added.
According to Mohammed Azlan, besides the economic challenges, regulatory developments would likely have a significant impact on the group’s business in 2023.
“We hope to see a balanced approach that avoids unnecessary consequences, while continuing to deliver cheaper rates and better services to the rakyat. We will continue to monitor these developments closely and adapt quickly, as needed,” he said.
In terms of competition, TM would anticipate a more challenging commercial landscape in 2023, Mohammed Azlan said.
“We must anticipate potential changes in the 5G scenario and prepare accordingly. We also expect new challenges with regard to the 2023 mandatory standard on access pricing,” he said.
“However, we see a strong growth potential in fixed-mobile convergence arena, particularly in mobile and we believe that digitalisation will be crucial for micro, small and medium enterprises and businesses in 2023 and beyond,” he added.
TM noted there were other areas that would be worth venturing and developing this year, such as cyber security, content delivery networks and data centres, which the group would continue to invest in as part of its growth opportunities, Mohammed Azlan said.
For the financial year ended Dec 31, 2022 (FY22), TM’s operating revenue increased 5.1% to RM12.1bil from RM11.5bil in FY21.
The revenue growth was primarily due to the increase in data services, voice, Internet and non-telecommunication services.
The strong revenue growth along with the continued cost optimisation efforts resulted in a 22.2% increase in earnings before interest and tax (ebit), reported at RM2.1bil, as compared to RM1.7bil in FY21.
Although dampened by the higher effective tax rate from Cukai Makmur in FY22, the higher ebit and lower financing cost led to a 27.7% increase in the group’s profit after tax and minority interests, which stood at RM1.1bil from RM895.2mil in FY21.
“We are aware that there will be more challenges ahead, but we remain very optimistic of our ability to adapt and succeed. We will continue to innovate, evolve and stay focused on our commitment to delivering value to our stakeholders,” Mohammed Azlan said.
