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 & Astro collaborate to deliver high quality digital experience
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MIDA as the lead agency of MITI in implementing strategies for Industry4WRD; collaborates with TM ONE for the deployment of high-speed internet connection for the nationwide programme
MIDA as the lead agency of MITI in implementing strategies for Industry4WRD; collaborates with TM One for the deployment of high-speed internet connection for the nationwide programme TM One, the enterprise and public sector business solutions arm of Telekom Malaysia Berhad (TM) had successfully deployed high speed broadband (HSBB) accessibility services to 33 industrial areas within the Northern, Southern and Eastern regions; including Sabah and Sarawak, in February 2021. The implementation is in support of Industry4WRD, a National Policy on Industry 4.0, that was launched by Ministry of International Trade and Industry (MITI), designed to transform the Malaysian manufacturing industry and its related services to be smarter, more systematic and resilient. The deployments followed the signing of a Letter of Acceptance (LOA) in July 2020 with the Malaysian Investment Development Authority (MIDA) - as the implementation agency for the Industry4WRD funds - for the installation of new high-speed internet network infrastructure to boost and secure data connectivity; accelerating Industry4WRD adoption among industry players and businesses. The deployments were completed ahead of schedule, initially aimed to be completed by June 2021, and are focused on systematically addressing and removing key connectivity bottlenecks in the priority locations. Dato' Azman Mahmud, Chief Executive Officer of MIDA commended, "We are pleased to establish this proactive engagement and collaboration with TM, through TM One; reflecting our shared commitment to ensure seamless and stable connectivity of Industry4WRD undertakings by our investors. This HSBB commitment is crucial to advance the level of digital compatibility, in strengthening Malaysia's economy amidst the pandemic and beyond." "The profound importance of high-speed internet connection to support the adoption of IR4.0 by businesses in Malaysia has led the MITI to propose for MIDA to obtain specific funding under the Industry4WRD agenda, towards the implementation of HSBB in the identified industrial areas across Malaysia. The Government has made the allocation under the Development Fund to MIDA, amounting up to RM19 million," added Dato' Azman. Meanwhile, Mohd Roslan Mohd Rashidi, Vice President Sales, TM One informed, "We are happy to announce that we had successfully completed the HSBB deployments ahead of target in these areas despite the Covid-19 situation. This collaboration with MIDA has enabled us to increase our momentum towards delivering efficient, widespread and affordable HSBB access across the country. Amidst the pandemic, industries and businesses have to leverage and keep up with the latest digital transformation trends to remain relevant in this digital age. They now rely heavily on Internet connectivity and the latest technologies to be more productive, efficient and competitive; enabling greater automation and richer insights through big data analytics. We are also seeing a shift in the way information technology is utilised through cloud computing, system integration and Internet of Things (IoT). Industries are also enhancing human capacity through artificial intelligence (AI) and autonomous robots." "A robust national digital infrastructure is the key enabler to build a high-income digital economy. In serving the digital economy, TM hopes to further enable the transformation of core processes across all priority sectors, including manufacturing, agriculture, oil and gas, besides promoting the information and communications technology (ICT) sector. This collaboration fits well in TM's unique role as the enabler of Digital Malaysia," he added. As Malaysia's national telecommunications provider, TM is a trusted institution, committed to enabling a Digital Malaysia future as an advance-tech nation with its digital and socio-economic aspirations through reliable network infrastructure and connectivity excellence. TM is ready to provide the best customer experience with innovative and reliable solutions towards fulfilling the objectives of the MyDIGITAL Malaysia Digital Economy Blueprint, and in supporting widespread quality connectivity for Malaysians nationwide.
Consolidation of TM’s business in Malaysia to strengthen fixed-mobile convergence leadership and improve operational efficiency
Telekom Malaysia Berhad ("TM" or "the Group") today announced an internal reorganisation which involves the transfer of its business in Malaysia to a single operating entity named TM Technology Services Sdn Bhd ("TM Tech"). The internal reorganisation is anticipated to complete by 31 December 2023. The reorganisation – which includes Unifi, TM One and TM Wholesale, among others – marks the next phase of the Group's transformation to be the enabler of a digital Malaysia, and to further improve its operational efficiencies, streamline processes and simplify customer touchpoints to provide a more seamless customer experience. Incorporating its diverse businesses under TM Tech will also reinforce TM's Fixed-Mobile Convergence leadership, offering integrated fixed broadband, mobile services, data services, digital content and innovative solutions to communities, businesses and the Government. Group CEO, Imri Mokhtar said, "As digital lifestyles, increasing competition and stakeholder expectations reshape the industry, consolidating these businesses into one operating entity will allow us to serve our diverse customer segments better and deliver their needs more quickly. "Consolidating our suite of connectivity and digital offerings will also enable us to easily tap into the right combination of solutions to meet the unique needs of individual lifestyles and businesses." "Furthermore, this reorganisation aligns us to industry best practices and will improve TM's competitive edge among Malaysian and international Telcos and digital players, as we continue to pursue our aspiration of becoming a leading human-centred TechCo," he added. Under TM Tech, consumers will continue to enjoy the fastest and widest all-in-one connectivity and digital content. Enterprises and the public sector will also benefit from TM's digital and smart solutions, including cloud and data centres, cybersecurity and smart industry offerings. The operating entity will also continue to champion TM's nation-building efforts in expanding and modernising the country's fibre network, data centres and submarine cable systems. TM Tech will be led by TM's existing senior management team and will bring together its diverse talents under a single company, encouraging greater agility and cross-functional collaboration to improve service quality. Imri explained, "Our Warga TM will remain the execution engine for TM and the country's digital transformation. While our workforce will be realigned to this single operating entity, employee functions, entitlements and benefits will remain unchanged." Similarly, all of TM's partnerships, vendor and service agreements will remain in effect. Telekom Malaysia Berhad will now serve as an investment holding company for this operating entity, with all other subsidiaries within the Group to remain status quo. "Beyond TM's own growth, this reorganisation strengthens our role in advancing the country's digital transformation and to serve our customers in a more cohesive manner. While it marks a new milestone in our continuous transformation, we remain anchored to our purpose of enabling digital inclusion, opportunities and progress for all," Imri concluded.
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