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 Announces Upcoming Change In Chairmanship
Telekom Malaysia Berhad (TM), is pleased to announce the appointment of Dato’ Zainal Abidin Putih as its new chairman effective 1 August 2023. He will succeed Tan Sri Azlan Hashim, who completes his 2-year term on 31 July 2023. Dato' Zainal Abidin brings a wealth of experience and distinguished track record in the corporate sector. He is currently Chairman of Financial Reporting Foundation (FRF), Land and General Berhad, Touch 'n Go Sdn Bhd and Tokio Marine lnsurans (Malaysia) Bhd, as well as Board Member of Khazanah Nasional Berhad and several private limited companies. He has also previously served as Chairman of Pengurusan Danaharta Nasional Berhad, CIMB Bank Berhad, Malaysian Accounting Standards Board (MASB) and President of Malaysian Institute of Certified Public Accountants (MICPA). As Chairman, Dato' Zainal Abidin will be responsible for overseeing the overall governance and strategic direction of TM. He will work closely with the Board of Directors and management team to drive TM's next wave of growth and strengthen its market position. Tan Sri Azlan, who shall complete his term as Chairman on 31 July 2023, expressed his confidence in the appointment of Dato' Zainal Abidin and stated, "I am delighted to hand over the reins to Dato' Zainal Abidin. His extensive experience and deep understanding of the corporate sector make him the ideal candidate to lead TM into its next phase of growth. I have full confidence in his ability to guide the company towards greater achievements and new horizons." Dato' Zainal Abidin expressed his gratitude for the opportunity and said, "I am honored to assume the role of Chairman of TM. I am excited to build upon the strong foundation laid by Tan Sri Azlan and work together with the Board and management team to create new opportunities and achieve even greater heights. It is an exciting time to be joining TM, especially as we build on the company's recent successes." TM extends its appreciation to Tan Sri Azlan Hashim for his invaluable contributions, dedication, and leadership during his tenure as Chairman. His vision and strategic guidance have played a pivotal role in the company's recent growth and success.
PETRONAS AND TM DRIVE SUCCESSFUL PRIVATE 5G NETWORK DEPLOYMENT AT PETRONAS LNG COMPLEX BINTULU
BINTULU, 9 AUGUST 2024 – Petroliam Nasional Berhad (PETRONAS) in collaboration with TM inaugurated a Private 5G network at the PETRONAS LNG Complex in Bintulu, Sarawak – signalling further advancements in connectivity and efficiency for the energy industry. The event was attended by Minister of Digital Gobind Singh Deo, Deputy Minister of Digital Datuk Wilson Ugak Kumbong, Sarawak Deputy Minister of Utilities and Telecommunications Datuk Liwan Lagang, and Digital Nasional Berhad (DNB), the nation’s 5G network provider. Following the historic launch of Malaysia's first Private 5G network for enterprise at PETRONAS’ Regasification Terminal Sungai Udang (RGTSU) in 2022, the new Bintulu location is one of four of PETRONAS’ sites installed with the technology. The PETRONAS LNG Complex is one of the world’s largest liquefied natural gas (LNG) plants in a single location with a production capacity of 29.8 million tonnes per annum, and deployment of the 5G network is expected to improve productivity and increase operational efficiency across critical production processes. In his speech, Gobind Singh Deo emphasised the role of 5G technology in the energy sector transformation, saying, “5G is amongst the key technologies that is gaining importance in the energy sector. The technology, which offers ultra-high speed coupled with low latency communication between control hubs, production sites and vessels, helps to streamline the growing complexity in operational activities. Increased use of 5G-enabled intelligent systems such as industrial IoT, drones, robotics, extended reality (XR), and artificial intelligence (AI) enhances operational efficiency and safety. “Energy companies around the world are racing to modernise their operations, and I applaud PETRONAS, TM and DNB for taking the lead in digitalising Malaysia’s energy sector.” Meanwhile, PETRONAS Senior Vice President of LNG Assets Abang Yusuf Abang Puteh said, “PETRONAS is positioning itself at the forefront of the global technological race while meeting the evolving demands of the energy landscape. The integration of 5G with the Internet of Things (IoT), Artificial Intelligence (AI), and automation will streamline workflows, increase productivity by automating data collection, while enhancing safety across all levels.” Amar Huzaimi Md Deris, TM’s Group CEO said, “This private 5G deployment is the next phase in TM and PETRONAS’ long-standing partnership to future-proof its businesses for a sustainable future. Leveraging on advanced technologies like AI, the Enterprise 5G application is expected to yield optimum operational efficiencies for its highly secure reliable connection, real-time monitoring and analytics as well as remote maintenance. “Furthermore, this collaboration will further catalyse digital innovation and industry adoption which are key to ensure business resiliency in the future and this intent is also aligned with TM’s aspiration of becoming a Digital Powerhouse by 2030,” he added. Looking ahead, PETRONAS and TM aim to explore opportunities to transform the energy industry through potentially expanding the distribution of Private 5G networks to newer sites for greater integration and efficiency.
unifi introduces five #unificares initiatives as commitment to deliver the unifi promise on customer experience
The initiative is unifi’s commitment to place customer experience as its No. 1 priority With a strengthened commitment to deliver the ultimate customer experience, unifi, Malaysia's leading convergence provider, today introduced five #unificares initiatives to transform its end-to-end customer experience (CX). As a technology company, unifi understands that customer expectations evolve together with the adoption of technology. This is why unifi aims to transform end-to-end customer experience with a renewed focus that ensures the customers' needs are met -- this is the unifi promise. To deliver on this promise, Telekom Malaysia Berhad (TM), has invested heavily over the years in both its customer support capabilities and network to deliver the best customer experience possible. The new #unificares initiative is also an expression of the company's commitment towards its loyal client base. unifi has the highest market share in the local Internet Service Provider (ISP) space. Speaking to the media at a virtual briefing from Menara TM today, TM's Chief Marketing Officer, Shanti Jusnita Johari, said #unificares is a testament of the company's continuous efforts to put customers first. "TM and unifi are walking the talk when it comes to customer satisfaction. Our 24-hour service restoration guarantee is the first of its kind in the industry. It is our commitment for unifi customers to continue to get the best broadband experience," said Shanti. She added that unifi's new bold undertaking was in keeping up with users' demands for reliable connectivity, among both the consumers and business segments especially as the micro, small and medium enterprises (MSMEs) focus on recovery and growth as well as consumers with continued hybrid working and learning arrangements following the pandemic. A good and reliable broadband access is highly critical in the "new normal". Five revolutionary #unificares initiatives unifi today announced five revolutionary initiatives to raise its game in CX. The 24-hour service restoration guarantee is among five new customer-focused initiatives under the #unificares campaign to enhance its broadband experience by reducing downtime to the absolute minimum. If unable to restore within 24 hours from complaint submission, customers will receive RM50 billing rebate compensation, redeemable via myunifi app within 30 days. It is the first of its kind in the local telecommunication industry and a commitment to its customer first strategy. This 24-hour service restoration guarantee starts 30 November 2021 and compensation eligibility is for customers subscribing to 100Mbps and above. Another innovation introduced with the campaign is unifi's Proactive Service Alert; an early detection and intervention system that ensures early notifications and speed of resolution to customers. Affected customers are alerted for restoration via SMS and the myunifi app push notification. Other customer-focused initiatives introduced in conjunction with the campaign are Easyfix self-serve tool, Service Tracker and unifi Elite experts. Easyfix is an easy visual based self-serve tool that enables customers to self-diagnose and do a quick troubleshoot on internet connection, telephony or unifi TV services. If an issue is unresolved, the Easyfix tool will automatically create a service ticket for immediate action by the unifi Care Crew or connect users to a unifi live chat agent for further assistance. Easyfix can be accessed anytime on the myunifi app under 'Support' or at easyfix.com.my. Service Tracker allows customers to view and track status of service and technical requests in real-time including details of the assigned TM Care Crew, via the myunifi app. Users can easily access the Service Tracker under 'My Activity' from their Account page. unifi Elite is a group of WiFi experts who are specially trained to provide customers with tailor-made consultation and solutions to further enhance their connectivity experience at home or business premises. unifi's track record in CX is well-established. Recently, it has been chosen as the sole Malaysian recipient for the "Brand of the Year'' award for the "Broadband / ISP" category, an award that is held under the auspices of the London-based World Branding Awards. This is the second consecutive year it won the award. Last year, it also won the "Best Fixed Home Broadband Service Provider" and "Best Business Fixed Broadband Service Provider" categories in the PC.com Best Product Awards 2020. TM continues to invest in future growth by modernising its network and technology platforms, to deliver the best current and future. TM is the only telco in Malaysia which has ventured into proactive service capabilities to elevate CX and digital tools to give added convenience to customers. Meanwhile, TM Chief Network Officer, Mohamed Tajul Mohamed Sultan, who was also present at the media briefing said the increase in usage and demand for unifi services following the pandemic had driven the company to up its connectivity game. "Even before this, public feedback shows that unifi's service quality is among the best. But we are not resting on our laurels. We want to raise the bar even higher because customer experience is paramount," added Mohamed Tajul. To achieve this, TM has invested over RM 1 billion in 2021 to uplift the customer experience in both its customer support capabilities and network improvements. This is to ensure that unifi continues to deliver unparalleled solutions to its customers. Users can visit unifi.com.my/unificares for more information on the unifi promise. The myunifi app can be downloaded from the Google Play Store as well as the Apple App Store.
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