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 takes a bold step in the enterprise business: hires key senior tech leader from the region Krish Datta as EVP into the leadership team for enterprise digital business: watch out what is happening next
Telekom Malaysia Berhad (TM) announced the appointment of Krish Datta, an established regional technology leader, as Executive Vice President of Digital Services. Krish brings deep expertise in building technology businesses from infancy to regional leadership alongside a broad, diverse set of experiences and skills to the newly created role. “I am delighted Krish has joined TM. He is a proven technology executive who has been instrumental in building and leading technology companies,” said Imri Mokhtar, Group CEO of TM. “In this new role, Krish will deepen our commitment and ability to enable our Enterprise and Public Sector customers’ digital transformation as we help them improve and accelerate every area of their business with simplicity and confidence. “While our focus remains on our core business, we have charted big, bold moves for the future as TM continues on our growth path. Our foray into enterprise digital services will open up new opportunities for TM to expand our customer base. More importantly, it will also enable us to better serve our existing customers by offering them solutions that will boost their business performance and at the same time, provide data-driven insights to make critical business decisions. “Krish at the helm of our new digital services arm marks the start of an exciting new chapter for us. As our customers in the Enterprise and Public Sector space continue to build the future of business, he will help TM realise our opportunities in B2B digital services. I am excited to see what Krish and his team will deliver!” “I am excited to join TM, for more than one reason.” said Krish Datta. “I love building sustainable tech businesses, and this opportunity to build a technology-focused team offers me the ability to create, from the inside, another reliable TM brand, a new identity for Enterprise Technology along with a scope to help a country I love.” With over 34 years of technology industry experience, Krish has built and led several enterprise technology-based businesses across ASEAN, India, Japan, Australia, and the Middle East. He is a passionate business and people leader who has demonstrated a successful track record in Asia with well-established global MNCs and start-up companies. Krish was in SAP Asia Pacific for over 16 years holding various leadership positions. He established SAP in Indonesia, Philippines, Vietnam and went on to hold the position of President, SAP Southeast Asia, responsible for all aspects of the business from sales, marketing, sales operations, presales, partner and eco-system, finance, support, HR, and consulting. Upon leaving SAP in 2011, he started a Goldman Sachs-backed data management services and software provider, Back Office Associates (now known as Syniti) in Asia Pacific, Japan, and Middle East region as its CEO. He went on to build the business over the next eight years and exited after building a manicured business, including key technology and delivery capabilities which included global delivery centres in India, Philippines, and P&L across nine countries. He became the Co-Founder and Chief Executive Officer of Xampr which started a no-code low-code mobile platform for mobile application development, focusing on integration, last-mile process and flexible template-based workflow and adoption. An art lover he also founded online art platform Mayinart. Krish holds an MBA in Marketing and Strategy from the European Business School, University of Surrey, UK and a First-class Honours Degree in Applied Physics/Classical Physics from the University of Calcutta, India. He has also completed the Global Leadership Development Program from INSEAD, France.
TM and Ministry of Education establish synergy to drive digital transformation in education
TM Becomes the Strategic Partner for Digital Education Transformation Initiative and Launches Special unifi Mobile Plan, Exclusively for Teachers Telekom Malaysia Berhad (TM) and Ministry of Education Malaysia (MOE) today embarked on a journey to establish working synergies on Digital Education Transformation initiative, in line with the Government’s Transformasi Nasional 2050 (TN50) plan which is set to empower Malaysia’s education system through innovation and digitalisation. This collaboration marks a steadfast effort via strategic partnership between TM and MOE to ensure effective delivery of the Digital Education Transformation programme. The collaboration will focus on four (4) main pillars namely 21st Century Teaching & Learning, Enterprise Architecture, Education Analytics and other Value Added services suitable for education. The ceremony was graced by YB Dato’ Seri Mahdzir Khalid, Minister of Education Malaysia together with Tan Sri Dato’ Seri Dr. Sulaiman Mahbob, Chairman, TM, together with Datuk Dr. Amin Senin, Education Director General of MOE and Datuk Bazlan Osman, Deputy Group Chief Executive Officer, TM. To commemorate this collaboration, TM also introduced a special unifi Mobile plan exclusively for teachers, called “JASA Pack”. The plan which is offered at only RM59 a month for unlimited data, calls and SMS. Commenting on the collaboration, Tan Sri Dato’ Seri Dr. Sulaiman Mahbob said, “As the key enabler for the national communications infrastructure, and the one and only capable of providing fully integrated telecommunications, ICT and digital services, TM is proud to play its role as the strategic partner in establishing the ecosystem for MOE digital transformation programme. We really look forward to work with MOE to accelerate the delivery of innovative digital services and solutions for the education sector towards building a knowledge-based workforce for the country.” “Meanwhile, as the one and only brand in Malaysia that offers truly seamless Internet connectivity to Malaysians nationwide, we are excited to introduce unifi Mobile “JASA Pack” plan for teachers, offering our teachers a converged digital lifestyle. The exclusive plan for teachers will be available nationwide for all teachers to enjoy unlimited data, calls and SMS via unifi Mobile at an affordable price for their daily communication needs, true to our promise, “Life Made Easier”,” he added. The collaboration will enable MOE to boost and accelerate its digital transformation journey as outlined in the national education blueprint 2013-2025 (Wave Two). This means students, teachers as well as MOE administrators can look forward to a seamless transformation of digital experience. These digital experience include high speed broadband connectivity, interactive smartboard, smart devices, as well as the methodology of teaching and learning the 21st century way. The transformation will also digitise the students tracking and attendance system for the safety of the students, whereby all parents and teachers will have real-time visibility on the students’ attendance. The transformation will also enable parents to choose cashless payment options at school. Ultimately, all data and information from all these solutions will be integrated and combined into one single platform to provide Big Data analytics.
TM and OYO Malaysia collaborate to provide guests with an enhanced connected staying experience
TM customers can also enjoy great promos at OYO Hotels and Homes as part of loyalty programme With the aim of elevating customer experience, OYO Malaysia and Telekom Malaysia Berhad (TM) today formalised a commercial and marketing arrangement, extending the companies' existing working relationship to benefit more local as well as foreign travelers. Under the partnership, TM will be providing its full suite of unifi services including high-speed broadband access, unifi TV and unifi Mobile to enable patrons of OYO Hotels and Homes to experience a seamless broadband and entertainment experience powered by unifi. TM will also provide dedicated customer support and technical teams for round-the-clock support at OYO Hotels and Homes to ensure business and service continuity. Meanwhile, OYO Malaysia will be offering special promos for TM customers for their stay at OYO establishments through TM's loyalty programme, TM Rewards. Besides that, both companies will work together in marketing initiatives including promoting OYO Hotels and Homes to 24,000 TM staff nationwide. The partnership was officially announced by Vimal Balachandran, Head, OYO Homes, Malaysia and Izlyn Ramli, Vice President, Group Brand and Communication, TM. Commenting on the partnership, Izlyn said: "I am very excited with this collaboration and would like to thank OYO Malaysia for choosing us as your communications and ICT solutions partner. With the provisioning of our comprehensive converged solution by TM, OYO Malaysia is set to elevate its guests' digitally connected staying experience at its properties nationwide. Our dedicated support service team will also help to ensure that OYO guests enjoy our seamless broadband and entertainment experience. This will certainly ease OYO management's concerns on continuous operational efficiency so they can focus on their core business, which is providing the best hospitality services to their patrons. TM, as the National Telecommunications Infrastructure Provider has a higher purpose to provide Malaysians with better connectivity via our solid network infrastructure, and power Malaysia as a Digital Nation – enabling Society, Businesses and Government. Today's collaboration reflects our continued support for the Malaysian hospitality and tourism industry. We hope this will spur more Malaysians to explore our beautiful country, while they continue to enjoy internet and entertainment access on unifi!" Welcoming TM to the extended OYO family, Vimal said that technology is at the core of hospitality at OYO. "OYO is constantly looking at ways to help asset partners transform their properties and enhance the guest experience at every step, thereby significantly increasing occupancy and profitability. The collaboration between two leaders in their respective categories continues to build on OYO's model of combining design, hospitality, and technological expertise and operational capabilities to enable our asset partners to offer good quality customer service and a seamless broadband experience to guests," he said. "TM has been an invaluable and supportive partner to OYO from the time when we first set foot in Malaysia in 2017. We look forward to a continued working relationship as we scale and extend our leadership position in Malaysia," added Vimal. OYO has revolutionised the fragmented and legacy-driven budget hospitality space by empowering small and independent asset owners with the operational capabilities and technology that enables them to compete with big hotel chains and achieve high occupancies and, therefore, yields. OYO Hotels and Homes currently operates over 16,000 rooms in more than 450 properties that it franchises and manages in 50 cities across Malaysia. Globally, OYO is present in over 800 cities across 80 countries. OYO Hotels and Homes has over 2,500 hotels and more than 75,000 exclusive rooms under management in Southeast Asia. Besides that, in conjunction with the holiday season, TM is also promoting OYO Malaysia at its School Holiday Carnival which is currently taking place until 7 December 2019 at KL Tower, a TM wholly-owned subsidiary and among the main tourism spots in Malaysia. The carnival lines up various activities for visitors to participate including quizzes, crossword puzzles, maze challenge, recycle initiative as well as Visit Malaysia Year 2020 campaign promo by Tourism Malaysia.
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