TM now has 3.11 million broadband subscribers, braces for MSAP impact from reduced HSBB pricing

KUALA LUMPUR, Aug 27 — TM has just posted its Q2 2023 results, with the Group reporting a 0.3 per cent increase in operating revenue to RM3.10 billion and a 6.5 per cent increase in fixed broadband subscribers to 3.11 million versus Q2 2022. The telecommunications giant also expects challenging times ahead in the coming months, especially with the implementation of the Mandatory Standard on Access Pricing (MSAP) which would reduce the price of wholesale High-Speed Broadband access.

For the reporting period, TM’s Patami (Profit After Tax and Non-Controlling Interest) rose by 50.4% to RM568.7 million. Meanwhile, Capex (Capital Expenditure) for H1 2023 stood at RM942.8 million which is 15.6 per cent of revenue.

According to TM’s presentation deck, they have added 27,000 fibre broadband subscribers in the past quarter. At the moment, they have 3,061,000 customers on Unifi and 46,000 customers on Streamyx as of the end of Q2 2023.

Despite the decline in Average Revenue Per User, its Unifi business has reported a slight 0.5 per cent increase in revenue from RM1.402 billion (Q2 2022) to RM1.409 billion (Q2 2023).

TM says they are reinforcing its market leadership in fibre broadband services with its recent introduction of Ultra Gigabit broadband plans with 1Gbps and 2Gbps (2x 1Gbps) bandwidth options. It has recently expanded its Unifi TV offering with the inclusion of Netflix video streaming to its bundled offering.

TM to focus on convergence to cushion the impact of MSAP

When asked about the impact of the MSAP, TM Group CEO Amar Huzaimi Md Deris said the company over the years have been coming out with competitive and compelling products, and they are in support of the government’s initiative to provide more affordable broadband to the market. To cushion the impact, he added that TM will be focusing on convergence as it has a different margin play. He said the impact of the MSAP is something the Group will have to manage by balancing what they are offering as well as introducing new services.

In addition to its existing 5G access agreement with DNB, TM recently signed a strategic agreement that will enable Unifi Mobile customers to tap into Maxis’ 4G network. When asked if Unifi will be adding wireless 5G into its fixed broadband portfolio, Amar said there are plans and it will be announced soon. — SoyaCincau