TM has introduced a new marketing campaign to encourage more
Streamyx users to upgrade to Unifi as
well as to spur existing Streamxy users to trade-up to a 1Mbps or faster plan. At a function over the
weekend, CEO Dato’ Zamzamzairani Mohd Isa said that TM has allocated RM2.5bn in capex for 2012,
mostly for new businesses as well as content and applications for
Unifi.
OUR TAKE
RM2.5bn capex for
FY12. The capex target is consistent with its guidance of RM2.5bn–RM2.6bn
post-FY11 results announcement. We believe this
amount comprises: (i) business-as-usual
(BAU) capex of RM1.1bn–RM1.2bn, and (ii) HSBB capex of about RM1.4bn. Note that
HSBB capex is peaking this year as TM has almost attained the 1.3m target
premises to be passed for 2012 under the agreement with the government. Management expects FY12
BAU capex to be slightly higher than the RM1.14bn for FY11 as it is on a
drive to replace older assets as well as
introducing a new billing system. TM spent RM1.4bn for HSBB last year, with its
portion of the spending (net of government subsidy) at RM712m. The remaining
subsidy from the government amounts to some RM140m.
Super Speed Me.
Under its latest marketing campaign which is valid until 30 June, TM is
offering existing Streamyx subscribers the option to upgrade to Unifi with the benefit
of maintaining their current subscription for 3 months. The same offer applies
to current Streamyx subscribers upgrading to a 1Mbps of faster
plan. The promotion for Streamyx is similar to its reasonably successful
‘Super Upgrade’ promotion offered 2 years ago to lure lower speed users to
upgrade to a 1Mbps line which now makes up close to 60% of its 1.7m Streamyx users. We gather from TM that
Unifi subscribers have surpassed 315,000 at end-1QFY12, marking another record in terms of subscriber addition and topping
the 76k net-adds in 4QFY11. More than
30% of the new subscribers come from its existing TM Streamyx user base.
Maintain BUY based on
FV of RM5.70. TM remains one of our top picks for exposure to the sector in
addition to Axiata. Key share price re-rating catalysts are: (i) additional capital
management (ii) stronger-than-expected earnings, and (iii) improved Unifi and wholesale
contributions.
Source: OSK188
No comments:
Post a Comment