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 calls on members of the public to donate pre-loved devices to the MYBAIKHATI campaign
Three (3) TMpoint outlets in Klang Valley now ready to accept device donations for B40 families Telekom Malaysia Berhad (TM) is supporting MYBAIKHATI, an industry-wide device crowdsourcing initiative aimed to collect and repair used communication devices to be distributed to low income families (B40). TM has set up three (3) of its TMpoint outlets in the Klang Valley as collection points to facilitate the donation drive. The outlets are TM Experience Centre (TMEC) at Menara TM, Bangsar; TMpoint Cyberjaya and TMpoint Shah Alam. The collection points will be progressively expanded nationwide in the near future. Commenting on TM Group's participation, Imri Mokhtar, Group Chief Executive Officer, TM said: "Everyone should have access to digital devices, especially in these times. The MYBAIKHATI campaign aims to provide the B40 community with usable smart devices for digital learning, work and business, so they have the means to weather through this unprecedented period. TM is excited to be part of this industry-wide initiative as together, we can help to alleviate the burden of the underprivileged and at the same time reduce the digital gap. We have kick-started this year-long donation campaign by setting up three (3) of our TMpoint outlets in the Klang Valley as the designated collection points in this pilot phase; so members of the public who are keen to donate can conveniently drop off their devices. We will definitely explore more locations nationwide to enable more people to take part and make their contribution." "We hope our fellow Malaysians, individuals and businesses, can come forth in the spirit of caring and generosity by donating your pre-loved used laptops, chromebooks, 4G-enabled tablets or 4G smartphones. The campaign runs for 12 months, so we hope you have ample time to sift through your belongings or consider a donation as you upgrade the devices for your own families. After making your contribution with us, don't forget to redeem a special token of appreciation for your kind gesture. Please join us in this collective effort towards enabling a more digital society, digital businesses and ultimately, a Digital Malaysia," he added. TM calls for all Malaysians and members of the public, be it individuals or companies to donate their used devices. TM will repair and refurbish devices that meet the terms and conditions with an allocation of up to RM500 for each device. The refurbished devices will then be distributed to eligible families in the B40 segment, through an appointed Non-Governmental Organisation (NGO), or through other various channels including selected "Pusat Internet Komuniti" (PIKs) nationwide. The donated devices that do not meet the requirements of the initiative will be responsibly recycled via the existing e-Waste programme. To be part of this noble initiative, simply follow these simple steps: Make sure your device is in working condition and is complete with its charger. Do make sure that your personal information and data has been completely deleted Bring the device(s) to the designated TMpoint outlets, meet with our staff and fill up the Device Contribution Form as well as the Contribution Acknowledgement Form Place the device(s) in the storage facility provided Redeem a token of our appreciation for your donation For more information on how you can be part of MYBAIKHATI initiative supported by TM, visit www.tm.com.my/mybaikhati.
TM Launches First AI Music Platform, Celebrating Malaysian Languages and Local Dialects
KUALA LUMPUR, 29 August 2024 – TM announces the launch of “Sejuta Suara, Satu Ritma, Jiwa Merdeka,” campaign in celebration of Hari Kebangsaan and Hari Malaysia 2024. It is the first AI-powered platform that enables Malaysians to perform the iconic patriotic anthem “Gemuruh Jiwa” in a wide array of local languages and dialects, bringing cultural diversity to the forefront. The platform is a first of its kind in Malaysia, combining advanced AI technology with a deep appreciation for the country’s multilingual tapestry. By utilising AI for automated lip-syncing and voice cloning, TM has created an experience that allows users to sing in their preferred language or dialect with realism and ease. The technology driving this platform is a collaboration of seven state-of-the-art AI and API platforms, seamlessly integrated to deliver a smooth and intuitive user experience. Powered by Credence, TM’s cloud and digital solutions arm, the platform is a testament to TM’s commitment to pushing the boundaries of what is possible with digital technology. Amar Huzaimi Md Deris, TM’s Group Chief Executive Officer said, “This initiative highlights how AI can be harnessed to celebrate and preserve Malaysia’s rich linguistic diversity. It gives Malaysians a new way to connect with each other and transform the iconic patriotic anthem into a unifying force for the nation. By leveraging advanced AI technology to promote our unique linguistic heritage, we contribute to national integration, digital inclusion, cultural preservation while fostering stronger unity and a digitally savvy society.” “Furthermore, this campaign not only showcases the possibilities of AI but also reinforces our brand promise of ensuring that technology opens doors to a promising tomorrow for all. It is our dedication to making advanced technologies accessible to every Malaysian as we drive towards our aspiration of becoming a Digital Powerhouse by 2030,” Amar continued. TM invites all Malaysians to be part of this groundbreaking campaign by visiting https://sejutasuara.tm.com.my/. Experience “Sejuta Suara, Satu Ritma, Jiwa Merdeka” and contribute to a musical journey that celebrates Malaysia’s linguistic richness and cultural unity.
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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