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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Orbix International School takes safety seriously by adopting TM R&D’s EWAR
TM R&D assists Orbix International School in adhering to the Standard Operating Procedures (SOPs) with deployment of EWAR towards curbing the spread of COVID-19 virus. Telekom Malaysia Berhad (TM), through its innovation arm, TM Research & Development (TM R&D), further promotes the adoption of digital solutions in the education sector by deploying its Early Warning, Alert & Response or "EWAR" at Orbix International School (Orbix), a private school in Muar, Johor. EWAR is an Artificial Intelligence (A.I) driven contactless temperature screening solution internally-developed by TM R&D. In an effort to digitalise the Standard Operating Procedures (SOPs) outlined for schools, Orbix has installed EWAR Compact, one (1) of EWAR's product categories, within their premise to better facilitate the temperature screenings of their students, teachers and visitors towards curbing the spread of COVID-19 virus. Commenting on the initiative, Dr. Sharlene Thiagarajah, Chief Executive Officer, TM R&D said, "We are honoured to be working with an educational institution such as Orbix to deploy our cost-effective and innovative solution in response to the required safety protocols. This illustrates the flexibility and readiness of education vertical in adapting to the new normal. At TM R&D, we are ever ready to assist businesses and organisations to get back on their feet safely." "We truly believe that deploying the EWAR Compact at schools or any educational institutions can provide students and teachers with a near-normal return to school experience as possible. We hope that this effort can encourage other schools and educational institutions to install EWAR Compact and simplify the adoption of the new SOPs in our battle against COVID-19." EWAR Compact is an AI-driven, one-on-one contactless thermal screening solution with a high accuracy of +/- 0.3℃, fast (~1sec) detection and voice prompt. In addition, AI-based facial recognition capabilities can also be applied with the solution. With EWAR Compact, students and teachers can go to schools with peace of mind, knowing that their schools are using the most effective technology available to safeguard their health. "Besides that, we are delighted to see more schools adopting digital solutions as this will expose teachers and students on how technology can help improve lives through safety. The exposure to EWAR Compact will also help students to experience digitalisation in action first-hand, and witness the benefits of digital adoption even before they enter the workforce. We hope this will help groom an industry-forward talent pool which will subsequently drive the nation's digital aspiration, befitting TM Group's role of the enabler of Digital Malaysia," she added. "Deploying EWAR Compact was a vital step for us as we were looking for the most effective technology available in safeguarding the health of our students and teachers. So far, we have received positive feedback on how EWAR Compact has enhanced the efficiency of temperature taking while simultaneously improving social distancing," said Govindan Nair, Chief Marketing Officer of Orbix Education. "The students especially have shared that they like how interactive the solution is. As we are firmly committed to ensuring the health and safety of our students, it is also important for us to expose our students to how innovation results in real-world solutions," he added. Back in July, TM R&D has successfully installed EWAR Compact at 12 selected schools under the purview of Bangsar / Pudu District Education Office (PPDBP) namely Victoria Institution, Sekolah Menengah Kebangsaan (SMK) Dato' Lokman, SMK Seri Saujana, SMK Desa Petaling, SMK Cochrane, SMK Taman Maluri, SMK Alam Damai, SMK Bukit Jalil, SMK Dato' Onn, SMK (P) Bandaraya, SMK Convent Jalan Peel and SMK Seri Permaisuri. During the early stages of the Movement Control Order (MCO), TM R&D has introduced two (2) main product categories under EWAR, namely EWAR Crowd and EWAR Compact as part of its contribution in the fight against COVID-19. The solution comes with four (4) main capabilities that close the critical loop from detection to containment. It is non-intrusive and has use-cases for both crowd and one-on-one scanning, respectively. EWAR Crowd comes with a dual-camera (thermal and optical) and is designed to conduct a rapid body temperature screening of approximately 10-15 individuals per second simultaneously at high traffic areas. It can easily be deployed in locations with mass traffic flow such as offices, shopping complexes, transportation hubs, universities, schools, tourist attractions, airports, immigration centres, and hospitals. EWAR Compact on the other hand is more suitable for a one-on-one contactless thermal screening. This can eliminate the need of the hand-held temperature taking, which can subsequently improve social distancing and minimise long queues. Both EWAR models have been installed at more than 150 sites across several industry verticals and have gone regional to help keep businesses safe beyond Malaysian shores. The solutions have been installed at the quarantine and treatment centre for COVID-19 cases at Malaysia Agro Exposition Park (MAEPS) in Serdang, large and mid-size office lobbies, hotels, Kuala Lumpur City Hall (DBKL) payment counters, various sales galleries and Gamuda Land construction sites, just to name a few. TM R&D has been growing from strength to strength since 2016, winning seven (7) globally recognised awards over the last two (2) years. Our innovations cut across multiple verticals such as the Smart Retail Analytics and Smart Safety Helmet, all developed internally by local talents in TM R&D. As the organisation continues to expand beyond connectivity and into new value-added digital and smarter platforms, its role in TM has become more prominent and exciting. For more information about TM R&D and its products and services, please log on to www.tmrnd.com.my. Follow us on LinkedIn (TM Research & Development) for more news and updates.
TM Further Accelerates Its Sustainable Development
TM is pleased to announce the publication of its inaugural Task Force on Climate-related Financial Disclosures (TCFD) report and this significant step underline the Group’s commitment to sustainability, transparency, and responsible business practices, reinforcing its position as a leader in the industry. The TCFD report provides transparency around the financial implications of an organisation’s climate-related risks and opportunities. With this 2022 report, TM is taking a proactive approach in understanding, assessing, and managing climate-related risks and opportunities, which will enable TM to strengthen its risk management practices, drive innovation, and ensure the long-term sustainability of its business operations. TM’s 2022 TCFD report is launched 2 years ahead of Bursa Malaysia’s December 2025 target requirement for public listed companies to align their reporting with TCFD. TM is in alignment with 9 out of 11 TCFD recommendations for the financial year ended 31 December 2022. Bursa Malaysia released this criterion in 2022 as part of its enhanced sustainability reporting requirement. “Towards becoming a human-centred TechCo, we are aware of our role in facilitating Malaysia’s transition towards a low-carbon future. Through this TCFD exercise, we have sought to build upon our existing initiatives and provide a future-focused examination on how climate change will impact our business. These insights will provide an important foundation that will enable us to continually improve our responses to climate change across each aspect of our value chain,” said Razidan Ghazalli, Group Chief Financial Officer, TM who also spearheads TM’s TCFD taskforce. "Our decision to embrace TCFD reporting demonstrates our dedication to upholding the highest standards of environmental, social, and governance practices," said Datuk Imri Mokhtar, Group Chief Executive Officer, TM. "We believe that by being transparent and accountable for our climate-related risks and opportunities, we can create long-term value for our stakeholders, strengthen our resilience, and position ourselves as an industry leader in sustainable business practices,” he further added. Developed in 2022, TM’s ESG Roadmap sets forth a clear vision, commitments, and execution plans across the three pillars of environment, social, and governance. As part of its efforts to combat climate change, TM launched several impactful initiatives aimed at achieving its goal of reaching net zero emissions by 2050. In 2022 alone, significant strides were made, including: Renewable Energy-Powered Data Centres - Three of its core data centres are now powered by renewable energy. This transition to clean energy sources significantly reduces carbon emissions associated with data centre operations. Network Modernisation for Efficiency - By implementing high-efficiency network elements and retiring legacy components, TM ensures that its network infrastructure operates at maximum efficiency. This strategic approach minimises energy waste and aligns with the overall objective of reducing carbon footprint. Energy-Efficient Air-Conditioning Upgrade - In reducing energy consumption, more than 560 conventional air-conditioning units have been replaced with more energy-efficient inverter air-conditioning systems. This transition to energy-saving technology not only contributes to lower carbon emissions but also leads to substantial energy cost savings. By incorporating renewable energy, optimising network infrastructure, and investing in energy-efficient technologies, TM is proactively working towards a greener future. With the ESG Roadmap as a guiding framework, the Group is dedicated to creating long-term value for its stakeholders while minimising environmental impact. Its unwavering commitment to sustainability extends beyond climate action to encompass social responsibility and sound governance practices. TM is committed to advancing its sustainability agenda by accelerating its transformation into a human-centred TechCo, in pursuit of a sustainable future and positive change within the industry and communities it serves. For more details on TM’s sustainability commitments and approach, visit tm.com.my/sustainability.
TM AND ZTE MALAYSIA ENTER INTO A STRATEGIC PARTNERSHIP TO DEVELOP NEXT-GENERATION TECH THROUGH HYBRID CLOUD 5G CORE NETWORK
Telekom Malaysia Berhad (TM) and ZTE (Malaysia) Corporation Sdn Bhd have entered into a new partnership to build a hybrid cloud 5G core network that is designed for future technologies and applications. Over the next three years, this strategic partnership will foster innovation and advancement of state-of-the-art technologies for TM’s 5G Core project, which includes bare metal containers, SDN-based architecture, hardware acceleration, CUPS, and 3-layer decoupling. Advancements in these technologies will propel the development of a converged, open, reliable, trusted and efficient 5G core network. This rollout is anticipated to transform and revolutionise the way that data will be processed and transmitted, which could significantly impact the development of future technologies and applications. Developing a high-capacity network will also address the rising need for network bandwidth and speed as Malaysia’s 5G adoption and ecosystem accelerates. The integration of this converged network will strengthen TM’s capabilities to provide seamless connectivity and exceptional network performance, serving a diverse range of industries, including healthcare, finance, transportation, and education. Additionally, the hybrid cloud 5G core network will aid in the growth of smart cities, Internet of Things (IoT), and other next-generation technologies that necessitate rapid, low-latency connectivity. This collaboration marks a significant achievement in the advancement of 5G technology in Malaysia, with the novel hybrid cloud 5G core network anticipated to revolutionise Malaysia’s telecommunications industry. With the deployment of these sophisticated technologies, customers will gain unparalleled user experience, while also improving the network's dependability, safety, and efficiency. Jasmine Lee Sze Inn, TM’s Executive Vice President for Mobile said, “TM is pleased to partner ZTE in building a hybrid cloud 5G core network that is designed to meet the rising needs for future technologies. This strategic partnership will transform 5G-enabled networks to deliver innovative solutions and services through our state-of-the-art network and infrastructure, and enable seamless connectivity and exceptional network performance. “We believe that this collaboration will further accelerate the adoption of 5G networks across Malaysia, and enable next-generation technology such as smart cities, Internet of Things, Artificial Intelligence, automation and other future technologies to drive both industry and the nation’s digital agenda forward.” ZTE Malaysia’s Chief Executive Officer, Mr Steven Ge, is also excited about the prospect of this collaboration and how it will advance the development of a converged, open, reliable, trusted and efficient 5G core network. Mr Steven Ge said: “We’re excited to strengthen our partnership with TM through the development of a hybrid cloud 5G core network. This will accelerate the launch of 5G network across Malaysia, which will bring forth new innovation into the market. As a global leading provider of information and communication technology solutions we are confident that the advancement of our hybrid cloud 5G core network will be the model for future networks. ZTE is committed in this collaboration that will put Malaysia as one of the leading countries in the region to roll-out its 5G network.”
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