What challenges does TM anticipate for its FY2020 revenue?

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TM Anticipates Revenue Challenges in FY2020 Due to Price Pressure

Telekom Malaysia Bhd (TM) is projecting a low- to mid-single digit decline in revenue for the financial year 2020, primarily due to ongoing price pressure within the telecommunications sector. This projection follows a 3.3 per cent decrease in revenue for FY2019, which amounted to RM11.43 billion. While the company aims to achieve flat revenue for FY2020, the persistent pricing challenges are expected to impact its financial performance.
Continued Price Pressure Expected

The telco's leadership has indicated that price pressure is a significant factor that will continue to affect performance throughout FY2020. This environment suggests that competition is likely to keep service prices low, potentially limiting revenue growth opportunities for TM. The company's goal is to counteract this by striving for flat revenue rather than experiencing negative growth.
FY2019 Revenue Decline

In the financial year ended December 31, 2019, TM's revenue saw a contraction of 3.3 per cent, falling to RM11.43 billion. This past performance underscores the existing financial headwinds that the company is facing as it looks ahead to the current fiscal year.
Mitigation Strategies for Churn

Despite the challenging revenue outlook, TM has implemented strategies to mitigate customer churn. The introduction of Unifi Air and increased demand for Unifi Mobile services have been cited as measures helping to offset the loss of some clients to other mobile operators. These initiatives aim to retain subscribers and stabilise customer base amidst competitive pressures.

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What challenges does TM anticipate for its FY2020 revenue?

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