03 Mar 2023
TM DELIVERS LANDMARK 2022 PERFORMANCE (FY2022) Revenue up 5.1% at RM12.12 billion; EBIT up 22.2% at RM2.09 billion; PATAMI up 27.7% at RM1.14 billion
FY2022 Key Highlights (vs FY2021)
· Operating Revenue grew 5.1% from RM11.53 billion to RM12.12 billion, with growth across all customer segments and product lines
· EBIT grew 22.2% from RM1.71 billion to RM2.09 billion, driven by strong revenue growth and improved cost efficiency
· PATAMI grew 27.7% from RM0.90 billion to RM1.14 billion, contributed by lower financing cost
· CAPEX investment at 20.0% of revenue or RM2.43 billion, highest in 5 years primarily on growth in fibre service and network expansion
· Final interim dividend at 7.5 sen per share declared amounting to RM286.6 million, with total dividend of 16.5 sen per share amounting to RM627.5 million for 2022
· ESG rating upgraded, FTSE Russell rated 3.6 from 3.1 in 2021; CDP rated ‘B’ from ‘C’ in 2021. Both above industry average
· FY2022 overall performance showed strong results with good trajectory and operational excellence across all lines of business
The financial year 2022 (FY2022) performance, ended 31 December 2022, represents Telekom Malaysia Berhad’s (TM) progress of its 3-year transformation programme (2021-2023). Moving into the final year of this transformation phase, TM remains committed to its focus in delivering value to its stakeholders.
Operating revenue grew by 5.1% to RM12.12 billion, from RM11.53 billion in 2021, fuelled by demand in connectivity, solutions and infrastructure. TM continued to strengthen its core businesses across Unifi, TM One and TM Global amidst intensified competition in the market.
Through revenue growth and improved cost efficiency, TM’s Earnings Before Interest and Tax (EBIT) grew by 22.2% to RM2.09 billion, from RM1.71 billion last year.
Profit After Tax and Minority Interest (PATAMI) rose to RM1.14 billion from RM0.90 billion, up 27.7% through higher operating profit and lower financing cost.
Capital Expenditure (CAPEX) stood at 20.0% of overall revenue, amounting to RM2.43 billion invested to deliver growth in fibre services, network modernisation and upgrades.
Unifi’s continuous growth momentum
Unifi continues its leadership in converged solutions of fixed broadband, mobile services, digital content and solutions for both consumers and MSMEs, recording a revenue growth of 7.5% from RM5.22 billion to RM5.61 billion contributed by increased number of home and MSME customers.
Unifi fixed broadband customers grew by 9.3% and exceeded the 3 million mark in 2022. To celebrate this milestone, customers were rewarded with free viewing of all 72 Unifi TV channels for one month, as well as pay-per-view movie discounts in appreciation for their trust and loyalty.
Unifi launched its 5G services in November 2022, offering Uni5G plans to Unifi Mobile postpaid and prepaid customers. 5G will reinforce TM’s converged leadership to provide the widest and fastest all-in-one solution for fixed broadband, mobile service and digital content.
Unifi Business’ digital solutions continue to boost and support MSME’s digitalisation needs from cloud storage, eCommerce hub, cybersecurity and digital marketing, serving critical needs from connectivity to digital solutions, accelerating their business growth.
TM One drives enterprise-grade innovative solutions
TM One reported a 0.5% growth in revenue from RM3.32 billion to RM3.34 billion in 2022, after several years of revenue decline amidst changing market dynamics and competitive landscape. This is attributed to higher recurring revenue and bespoke solutions deployment, as a trusted technology partner for large enterprises and the Government.
Utilisation of data centre space and power have also increased in 2022. The twin-core data centre of KVDC and IPDC have obtained Green Electricity Tariff (GET) from TNB as well as Green Building Index (GBI) and Leadership in Energy Environmental Design (LEED) certifications.
To strengthen its partner ecosystem, TM One launched ‘5G Sphere’ in October 2022 and today counts on over 70 leading technology and smart solution partners to accelerate the co-creation of 5G use-cases. On the other hand, Credence is advancing enterprise’s ‘cloud-first strategy’ as well as developing technologically-skilled professionals to accelerate cloud adoption in Malaysia.
TM Global positions Malaysia forward as a digital hub in the region
TM Global (rebranded from TM Wholesale) delivered a strong performance which made a significant contribution to the overall 2022 performance. TM Global’s revenue grew 7.8% from RM2.58 billion to RM2.78 billion, on the back of higher domestic data and international digital demand.
Domestically, TM Global is the preferred partner for High-Speed Broadband Access (HSBA) with the highest new installation in 4Q 2022. Advancing the country’s 5G rollout, almost 4,000 fiberisation sites were completed for the year.
Internationally, TM Global closed deals from US-based hyperscalers and Asia-Pacific carriers for its wholesale data centre solutions and international data services, elevating Malaysia as a trusted digital hub for the ASEAN region.
Commentary and Outlook from Dato’ Imri Mokhtar, TM Group Chief Executive Officer
“2022 was a milestone year for TM, tracking well in our transformation with growth across our business segments – Unifi, TM One and TM Global, and cost efficiency improvement. The stronger financial position places TM in a position to deliver better value and benefits for our stakeholders – customers, shareholders, partner ecosystem and community.
“TM is committed to continuously invest in shaping a Digital Malaysia through technology that empowers communities, businesses and Government – not just in our core business, but also in new, adjacent growth areas such as cloud, data centre, cybersecurity and platform-services.
“Sustainability will also be a domain we strive to make continuous progress. We have seen improvements in TM’s ESG ratings, for example the FTSE Russell ESG score rising from 3.1 to 3.6 in 2022 and also the CDP rating upgrade to ‘B’ from ‘C’ last year, both above the industry average. On governance, TM upholds transparency, disclosure and zero-tolerance to all forms of corruption, receiving the Gold Category in the recent Integrity, Governance and Anti-Corruption Award (AIGA) 2022.
“As part of TM’s next transformation to become a human-centred TechCo, we announced a reorganisation in December 2022 to streamline our core businesses and subsidiaries under a new entity named TM Technology Services Sdn Bhd (TM Tech). TM Tech is set to become the main operating entity of the Group with effect from 1 March 2023. This new corporate structure will be the catalyst for the next phase of TM’s transformation to reinforce its fixed-mobile convergence leadership, further improve operational efficiencies and deliver a more seamless customer experience.
“On the back of our current business momentum, there are new opportunities in the adjacent growth areas but also industry headwinds in terms of regulatory policy and higher technology costs. We are continuously assessing the impact of industry developments and will work closely with key stakeholders towards providing technology that is accessible to all in this digital era.”
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TM One LEAP Summit 2022 poised to advance next-gen enterprise transformation with world-class innovators
TM One’s annual flagship event LEAP Summit returns for a fifth year, anchoring on the theme ‘Enabling Your Next: Innovate and Transform’ TM One, the enterprise and government sector business solutions arm of Telekom Malaysia Berhad (TM), held its high-impact annual flagship event, LEAP Summit 2022 today, aimed at propelling enterprise innovation and transformation as Malaysian businesses take advantage of the nation’s initial economic recovery. The fifth in its series, LEAP Summit 2022 themed ‘Enabling Your Next: Innovate & Transform’, brought together world-class digital experts and over 200 of Malaysia’s top decision makers to better understand how these leaders could unleash their innovation potential and take their businesses to the next level. Imri Mokhtar, Group Chief Executive Officer of TM, in his welcoming address said that increased customer expectations for digital services and platforms are reshaping how enterprises work and conduct their business. He also explained that in order to keep up with these new trends, enterprises must fast-track their transformation to virtualised cloud-based services, leverage digital networks to modernise legacy processes, accelerate workflow efficiency, and strengthen cybersecurity. This will improve business offerings and overall customer experience, leading to increased growth and profitability. Kicking off LEAP Summit 2022 was Netflix’s Co-Founding Executive, Mitch Lowe, who emphasised the need for being brave in order to become a leader of the industry and to remain relevant. Having grown with the entertainment industry from video stores and DVD kiosks, to founding one of the most successful over the top (OTT) content services, Lowe shared that the habit of transformation is built by constantly looking to solve the problems faced by the customers and the industry. Building on this need for organisations to constantly evolve, the event then featured a panel session with Paul Nicholls, Telstra Purple’s Digital Transformation Practice Leader with Telstra’s global partners Airspeeder (the F1 for Electric Flying Vehicle) and Bata Global (world's largest shoe manufacturer), which was moderated by Ching-Fong (CF) Ong, Managing Director & Senior Partner from Boston Consulting Group; who deep dove into real examples of transformation, spanning multiple technologies and geographies, which centres around customers. Bringing the conversation closer to home, industry leaders Datuk Hj Bacho Pilong, Senior Vice President, Project Delivery & Technology, PETRONAS; Fabian Bigar, Chief Executive Officer, MyDIGITAL; Effendy Shahul Hamid, Chief Executive Officer, CIMB Digital Assets; Ir. Dr. Lim Eu Shawn, Chief Global Solutions Officer, Aerodyne Group; also weighed in on transformation within the Malaysian context and its role in future-proofing businesses and the nation to progress from surviving to thriving. This discussion was moderated by Manoj Menon, Founder and Chief Executive Officer of twimbit. Commenting about this year’s event, Shazurawati Abd Karim, Executive Vice President of TM One said, “TM One’s LEAP Summit is part of our continuous commitment to enable organisations to prepare for their next advantage, today and tomorrow. With one of the common challenges faced by organisations being how to start or even expand their innovation and transformation journey, we connect them to world-class leaders to open up new ideas and possibilities that enterprises can put into motion.”TM One 5G Sphere Programme – enabling enterprises’ ‘Next’, now LEAP Summit 2022 also witnessed the inauguration of TM One’s 5G Sphere Programme, an alliance of Malaysia’s leading technology and smart solution partners to create an ecosystem to support the next phase of enterprise innovation and transformation, leveraging 5G. Harnessing 5G capabilities to power connected technologies to improve performance and customer experience, real-time detection, instant analysis and action for efficiency, as well as increased safety while reducing down-time through smart solutions, TM One’s 5G Sphere offers the opportunity for enterprises to springboard their transformation through actual case studies and proof of concepts that address their unique business challenges.TM One 5G Solutions for enterprises and the government sector TM One’s latest-in-class showcase during LEAP Summit 2022 also spotlighted 5G-enabled applications for Smart Healthcare, Smart Industry and Smart Cities, along with several digital solutions and services, demonstrating the latest end-to-end technologies available to enterprises and the public sector to spur on their digital growth. Shazurawati explained, “The next phase of smart innovative transformation will be 5G-driven opportunities, with capabilities such as video monitoring, logistics, fleet management, and private 5G networks powering manufacturing, transport, factories, and campuses already on the horizon.” “Moving forward, optimal 5G business solutions will arise from smart collaborations and coalitions among industry leaders, accelerating the next phase of technology adoption by both industry and the country as a whole, and enabling our aspirations for a Digital Malaysia,” she concluded.
TM Future Skills Programme continues with a project based learning e-showcase event
Two (2) schools participated in E-Showcase PBL-TM Future Skills 2020, the highlight of a 3-month online learning programme for teachers and students of the schools Telekom Malaysia Berhad (TM) continues its efforts to equip the younger generation with Industrial Revolution 4.0 (IR4.0)-centric knowledge through initiatives under its TM Future Skills programme. Most recently, students from Sekolah Jenis Kebangsaan Cina (SJKC) Jalan Davidson, Kuala Lumpur and SJKC Tsun Jin, Kuala Lumpur demonstrated their talents in 3D programming and printing skills in a two (2)-days online event held in collaboration with Bangsar / Pudu District Education Office (PPDBP). The event, titled E-Showcase Project Based Learning (PBL)-TM Future Skills 2020, saw the participation of 60 teachers and students from both schools. The students showcased their 3D innovation projects and at the same time, shared and displayed their knowledge and skills in Science, Technology, Engineering and Mathematics (STEM) subjects. Izlyn Ramli, Vice President, Group Brand and Communication, TM, said: “We are delighted with the schools’ acceptance and active participation in the TM Future Skills Programme. Our Corporate Social Responsibility (CSR) programmes under the education pillar are always aimed at supporting the nation’s education system towards preparing not only the students, but also the teachers and society at large, with IR4.0 skills. We hope this programme will help to enhance the students' future skills and increase their interest in STEM subjects. This befits our role as a responsible nation builder where we will continue to serve and enable Digital Malaysia through innovative and inclusive digital solutions.” Teah Lay Theng, Headmistress of SJKC Jalan Davidson, said: “The PBL approach was chosen for the programme as it can bring out the most from the students in terms of innovation and creativity. The use of digital equipment is also able to improve the digital skills and competencies of our students in producing the innovations.” Meanwhile, Ng Mooi Hong, Headmistress of SJKC Tsun Jin, said: “In the current pandemic environment, teachers need to be creative in imparting knowledge and running the programmes that can develop the potential of our students. With this programme, we hope to inoculate the interest, highlight the potentials and empower the students with STEM subjects.” The E-Showcase PBL-TM Future Skills 2020 was the highlight of three (3) months long online learning programme for teachers and students of the two (2) schools. Throughout the programme, the teachers and students from both schools learned about digital technology in TM 3Ducation – the 3D printing module to be implemented in their PBL. Due to the ongoing pandemic Covid-19, TM’s strategic partner for TM Future Skills, Creative Minds, conducted the training sessions for all the teachers and students, including parents, through an online platform. Not being in class physically following the closure of schools nationwide has also not deterred these young innovators. They persevered in conducting research and continued to experiment and collaborated with each other virtually for the past 3 months. At the same time, School Improvement Specialist Coach (SISC+) from PPDBP closely supervised the activities and monitored the progress of the participants. Streamed live via YouTube, the E-Showcase garnered more than 6,000 viewers throughout the 2-day event and the channel has cumulated more than 7,800 views to date. The panel of judges for the E-Showcase consisted of SISC+ from PPDBP and led by Izad Ismail, Head of Corporate Responsibility, TM. TM Future Skills programme is an initiative that aims to empower students by equipping them and teachers with IR4.0-centric kits and knowledge, such as the TM 3Ducation – 3D printing module and the TM Nano Maker, a real-time data logging tool for STEM. This is to prepare them to be part of a digital-ready community and future-proof workforce which has always been one of the pillars under TM’s Digital Malaysia aspiration. As a key enabler of this, TM has always been an avid supporter of innovation and technology in Education. Through programmes like TM Future Skills, the Company endeavours to empower the leaders of tomorrow with relevant skills in innovation and technology towards serving a more digital society and lifestyle, digital businesses and industry verticals, as well as digital Government. For more information on the Company's other Corporate Responsibility initiatives, visit www.tm.com.my.
TM data centres now powered by clean energy
TM secures Green Electricity Tariff (GET) from TNB for its KL, Cyberjaya and Johor Bahru data centres, adding to their Green Building Index (GBI) and Leadership in Energy and Environmental Design (LEED) certifications Customers of data centre services provided by Telekom Malaysia Berhad (TM) will now be able to accelerate their sustainability journey, with the Group recently securing Green Electricity Tariff (GET) from Tenaga Nasional Berhad (TNB) for three (3) of its data centres. The data centres comprise the Klang Valley Core Data Centre (KVDC) in Cyberjaya, Iskandar Puteri Core Data Centre (IPDC) in Johor Bahru and KL City Data Centre (CTDC) in Brickfields. This adoption of green energy supply complements the data centres’ Green Building Index (GBI) and Leadership in Energy and Environmental Design (LEED) certifications obtained previously for their efficient energy use, further cementing TM’s commitment towards reducing carbon emission and impact on the environment. GET is one of the Government’s initiatives to provide Malaysian consumers the option to use green electricity coming from renewable energy supply as the country moves towards achieving net-zero Greenhouse Gas (GHG) emissions by the year 2050. GET subscribers are supplied with electricity coming from solar and hydro generators instead of fossil-fuel based. Imri Mokhtar, Group Chief Executive Officer, TM said, “The largest source of carbon emission worldwide is from electricity generation as well as heat management, and data centres use significant amounts of power to run the IT and Cloud workloads. This indirectly contributes to high level of carbon emission as the electricity typically comes from fossil fuel-based energy supply. With this clean electricity, we will substantially reduce the impact our data centres have on the environment, while continuing to enable our customers, from large enterprises, the public sector or global hyperscalers, to enjoy the convenience, stability and security of our data centre services. “For our data centre customers who are conscious of the green efforts in their business operations, GET fulfills this need, enabling them to deliver their products and services in a greener manner to their end customers. This green initiative by TM will provide a total energy saving of 27 million kWh per year, which is equivalent to a total carbon emission of 19,134 metric tons,” he added. “To put that into perspective, this is comparable to the amount of electricity used at 3,476 homes for a year, or 9.7 million litres of petrol consumed by the average automobile.” The adoption of GET is the latest among the Group’s various initiatives under the Environmental pillar of its Environmental, Social and Governance (ESG) commitment. Mindful of its responsibilities towards environment conservation and climate impact, the Group has included sustainability factors in all its operations in addition to running nature preservation activities via its foundation, Yayasan TM. In promoting sustainability, TM remains steadfast in its ESG commitments. For Environmental, the Group will progressively cut down emissions by 30% in 2024, 45% by 2030 and achieve Net-Zero emission by 2050. On Social, TM is set to provide access to high-speed internet to at least 70% of premises nationwide. The Group promotes gender diversity in decision-making roles by having a minimum of 30% women on its Board of Directors and in Management. Under Governance, TM will continue working with the Malaysian Anti-Corruption Commission (MACC) to uphold its zero-tolerance to any form of corruption and maintain the highest standards of corporate governance.
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