As a result of jump in revenue and continuous cost optimisation initiatives, Earnings Before Interest and Tax (EBIT) increased 6.6% to RM1.71 billion from RM1.60 billion in 2020 despite one-off provisions, impairments and accelerated depreciation
Telekom Malaysia Berhad (TM or the Group) delivered yet another healthy set of financial results for the Full Year 2021 ended 31 December 2021 as compared to the same period last year (YoY), despite protracted impact from the ongoing pandemic on the economic and business front.
Fueled by strong growth in unifi revenue and fixed broadband subscribers, as well as sharp growth in the TM Wholesale business which registered increasing data demands from hyperscalers, and international and domestic service providers, TM recorded a 6.4% rise in revenue to clock in at RM11.53 billion from RM10.84 billion in 2020.
This marked revenue improvement as well as the Group’s continuous cost optimisation initiatives led to the increase in Earnings Before Interest and Tax (EBIT), up 6.6% YoY to RM1.71 billion, from RM1.60 billion last year. Profit After Tax and Non-Controlling Interests (PATAMI) at RM895.2 million dipped 11.9% contributed by higher taxation including provision for Cukai Makmur, lesser interest income and forex losses, as well as impairment of TM’s mobile assets as the Group prepares itself for 5G.
Based on its steady financial position and strong Free Cash Flow generation, the Board of Directors proposed the final interim dividend at 6 sen per share, resulting in a total dividend of 13 sen per share for 2021, in line with the Group’s growth investment strategy.
CAPEX for the year was reported at RM1.70 billion, or 14.7% of revenue, reflecting TM’s commitment to reinvest in business expansion, new growth areas and provide great experience and services for its growing base of customers. Free Cash Flow at RM2.19 billion rose 9.5% from RM2.00 billion, ensuring steady growth ahead of a demanding future.
unifi: Record-breaking revenue, total subscribers
It was a landmark year for unifi, contributing to the Group’s strong performance. Overall unifi revenue grew by 10.3% driven by increased fixed broadband subscribers, with 2.78 million cumulative registered subscribers - the highest number of unifi and fixed broadband customers registered, as well as highest number of ports installed.
In addition to unifi’s drive to reduce broadband downtime to the absolute minimum for its customers, the business introduced five #unificares initiatives to refine its end-to-end customer experience, with the highlight being unifi’s 24-hour service restoration guarantee, the first of its kind in the Malaysian telecommunications industry. In its effort to support SME recovery and growth, unifi has offered more than 377,000 local SMEs special packages with complete digital ecosystem to help them to grow their business and stay competitive.
unifi will continue to maintain its leadership in convergence of broadband, content, mobile and solutions for both home and SMEs customers. With online connectivity playing a central role to enable Digital Malaysia, unifi bridges the connectivity gap by serving customers with innovative and high-quality products and services.
TM Wholesale (TMW): Realising 5G and Malaysia’s digital hub aspiration
TM continues to drive wholesale business for both domestic and international segments via TM Wholesale (TMW). With a strong performance last year, TMW’s posted revenue grew by 14.7% due to solid partnership expansion with domestic and international customers.
Domestically, as the preferred fibre service provider, TMW will continue to pursue 4G and 5G fibre infrastructure deployment as well as promoting collaboration with domestic service providers, in line with the Government’s JENDELA initiative. The 5G fibre leasing services (worth RM2 billion over 10 years) for Digital Nasional Berhad (DNB)’s 5G infrastructure needs, is a testament of TM’s commitment to infrastructure sharing in enabling excellent wireless solutions and services. TMW also recorded the highest active ports subscription for wholesale High-Speed Broadband (HSBB) access with more than 550,000 cumulative ports for Malaysian fibre broadband providers.
On the international front, TMW continues with its aspiration to become a digital hub for the ASEAN region through strategic collaborations with hyperscalers and global service providers. The year saw a solid achievement with 190 new deals from hyperscalers and global service providers for various wholesale International Data offerings. This translated into the highest annual revenue contribution from major hyperscalers worldwide, a milestone year in building a regional hub position for Malaysia.
TM ONE: Custom solutions and digital adoption amid a challenging landscape
TM ONE is expected to remain competitive amidst the challenging economic and business environment. This is driven by its strong value proposition of offering the end-to-end managed services and digital solutions, backed by robust digital connectivity and infrastructure.
As the only home-based Cloud Service Provider (CSP) with data sovereignty assurance, TM ONE will continue enhancing its Cloud service as a complete digital solution by embedding analytics, smart services/IoT and cybersecurity to cater for the key industry verticals. Enterprises and public sector services are on an accelerated path to digitally transform, leveraging on cloud architecture and smart services as a foundational pillar to unlock innovation opportunities, stay resilient and maintain a competitive edge, all in line with Malaysia’s MyDIGITAL aspirations.
In becoming a trusted cloud partner, TM ONE focused its efforts in boosting proficiencies and competencies of its solution consultants, technology experts as well as international certifications. It has attained four (4) International Standard certifications (ISO/IEC) for Cloud α (pronounced as Cloud alpha) on Information Security Management System (ISMS), Personal Data Protection Act (PDPA), Business Continuity Management System (BCMS) and Cloud Specific Controls.
Commentary and Outlook from Imri Mokhtar, TM Group Chief Executive Officer
“As the enabler of Digital Malaysia, TM remains steadfast in its efforts to realise the national digital aspirations. We are committed to support the Government’s efforts to re-build the economy post-pandemic.
For 2021, TM has shown positive results, driven by the New TM Transformation Programme which has delivered overall growth in TM’s revenue and EBIT. Cost rationalisation has also significantly improved the Group’s profitability.
As TM enters its second year of transformation in 2022, we are activating more programmes to ensure we quickly move forward as a growth company, and keep pace with our trajectory. TM’s revenue growth is expected to remain intact, in line with the Group's market guidance, which is between low to middle single digit growth, while EBIT is projected to be more than RM1.80 billion, driven by TM’s three Lines of Business: unifi, TM ONE and TM Wholesale.
We expect to invest between 14% to 18% of our revenue this year on Capex, reflecting our continued commitment to reinvesting into growth areas, capability, and capacity building, as well as enhanced customer experience.
In promoting sustainability, TM aligns its ESG (Environmental, Social, Governance) vision and commitments to national and global aspirations. For Environmental, TM is committed to achieve carbon emission reduction by 30% in 2024, 45% by 2030 and Net-Zero emission by 2050. On Social, TM is set to enable MyDIGITAL Blueprint 2025 targets by ensuring at least 70% of premises have access to high-speed Internet. Under Governance, TM works hand-in-hand with the Malaysian Anti-Corruption Commission (MACC) to continue upholding our zero-tolerance to any form of corruption and maintaining the highest standards of corporate governance.
This year, we will continue to power a digital nation, by delivering great Customer Experience, Solutions and Connectivity Excellence. This is made possible with unwavering support from its core execution engine; the employees or "Warga TM" who are fully dedicated and committed to enabling a Digital Malaysia, bridging the digital divide and in step, reducing the income divide.”
In its pursuit to strengthen its core connectivity and invest more in digital, TM is future-proofing the organisation with future-ready skills and digital workforce, as part of its aspiration in becoming a human-centred technology company.”
Guidance for 2022 is summarised below:
Revenue Growth Low to middle single digit growth | Low to middle single digit growth |
EBIT | More than RM 1.8 billion |
CAPEX / Revenue | Between 14% - 18% |
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TM One and MPSJ embarks on 5G demonstration project in Subang Jaya
Local communities set to experience ultimate 5G experience with smart solutions; in line with the aspiration to become a Vibrant City by 2030 TM One, the enterprise and public sector business solutions arm of Telekom Malaysia Berhad (TM) and Majlis Perbandaran Subang Jaya (MPSJ) today inked a Memorandum of Collaboration (MoC) for the deployment of three (3) 5G-enabled use cases, namely the Smart Traffic Light, Smart Parking and Smart Safety & Security solutions at SS15, in Subang Jaya as part of the 5G Demonstration Project (5GDP) undertaken by the Malaysian Communication and Multimedia Commission (MCMC). The MoC was signed by Ahmad Taufek Omar, Executive Vice President / Chief Executive Officer, TM One while MPSJ was represented by TPr. Hjh Noraini Roslan, Yang DiPertua, MPSJ. YAB Datuk Seri Amirudin Shari, Menteri Besar of Selangor together with Tuan Haji Rosli Man, Chairman, TM and Gerard Lim, Chief Digital Officer of MCMC witnessed the signing. Also present at the event were YB Michelle Ng, ADUN for Subang Jaya as well as representatives from the State Executive Council. Commenting on the collaboration, Tuan Haji Rosli said; "We are proud and excited to join forces with MPSJ in supporting MCMC's 5G Demonstration Project to deploy 5G infrastructure and services to Malaysians. The use cases that we are rolling out in all of our 5GDP locations are particularly selected to address the specific challenges faced by the community and stakeholders at the respective locations. For Subang Jaya, we have, together with MPSJ, identified prior to the project that parking, congestion and safety issues are among the community's top concerns. Today, TM and MPSJ are together in demonstrating how smart cities can be powered by 5G and Subang Jaya is indeed a perfect location to demonstrate these capabilities. We hope that throughout the 5GDP period, we will be able to show how 5G-enabled solutions can solve the challenges and create an Ultimate Smart City Experience for Subang Jaya, making it a smart city pioneer in Malaysia. This is in support of the Malaysian Communication and Multimedia Commission's (MCMC) efforts in progressing humanity towards improving the quality of lives of the Rakyat." "We hope as 5G becomes a reality, the communities will experience better streaming and connectivity and this will certainly bring a multitude of benefits to Subang Jaya city. Streets, buildings, public and personal devices need to be interconnected in order to manage the resources and operations in Subang Jaya. This can only be cost-effective and efficient if they are automated and connected and this is in line with MPSJ efforts to make Subang Jaya a safe, green, smart, prosperous, healthy and women-friendly municipality. MPSJ plans to install more than 100 high-tech CCTV cameras in the SS15 commercial area to monitor parking and traffic flow and under the proposed pilot project, the CCTVs would be equipped with enhanced technology and algorithms that could gauge the behaviour of motorists and alert MPSJ or the police if any urgent action is required," said TPr. Hjh Noraini. Noraini added that it is MPSJ's hope that this initiative and collaboration will realise MPSJ's aspiration to become a Smart City by 2030 and at the same time, support the Selangor state government vision towards making Selangor as the pioneer smart city by 2025. Through this partnership, TM One and MPSJ agree to jointly collaborate in the deployment of the 5G network with the rollout of the three (3) use cases, where the transmission of TM's 5G service and the use cases have been fully operational since November 2019. Both parties have also agreed to undertake joint marketing and promotion activities of the use cases in SS15, Subang Jaya for a duration of six (6) months. Ahmad Taufek added, "5G is the next-generation network that will serve as the enabling technology for the Internet of Things (IoT), leading to many transformative smart solutions such as the Smart City Solutions and beyond. TM, via our innovative and comprehensive products and solutions will continue to lay the foundation for Industrial Revolution 4.0 (IR4.0) and enabling IoT – to serve a more digital society and lifestyle, digital businesses and industry verticals, as well as digital Government. TM ONE as the enterprise and public sector business solutions arm of TM is committed to support the Group's role as the national telecommunications infrastructure provider of Malaysia's Digital Nation aspirations - that has established the communications backbone of Malaysia with the widest connectivity and convergence network." TM ONE's 5G-enabled Smart Traffic Light solution programmes traffic lights to respond to real-time, rich data collected by connected high-definition (HD) cameras and sensors, to enable improved traffic flow and reduces idle time at red lights. The Smart Parking solution enables real time parking bay monitoring using HD camera and Artificial Intelligence (AI), so users are able to search for vacant parking bay and navigate via path finder to reduce the time spent searching for the spot. Meanwhile, MPSJ enforcers can monitor parking occupancy and illegal parking incidents from the command centre and deploy resources more efficiently, thereby reducing traffic congestion at outdoor parking areas. The Smart Safety and Security solution provides advanced surveillance and real-time monitoring through video streaming from sensors and HD camera. Powered by AI capabilities, and integrated with TM's emergency response team, immediate action can be deployed in case of emergencies, as well as predictive analysis on actual incident situation for proactive response. Apart from the three use cases deployed in partnership with MPSJ, TM deploys three (3) other use cases through its research and development arm, TM R&D Sdn Bhd (TM R&D). Two (2) use cases - Smart Retail Analytics and Smart Water System are deployed at private commercial premises in SS15, Subang Jaya while Smart Vehicle will be implemented at TM Fleet in the area. Earlier last week, the Company announced that it has begun transmission of 5G service in Pulau Langkawi, where it is deploying the first 5G Stand Alone (SA) network, and will be demonstrating more 5G use cases there.

YAYASAN TM COLLABORATES WITH YAYASAN DIRAJA SULTAN MIZAN TO EMPOWER YOUTHS
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TM Inks MOU With ZTE For R&D Innovation Under Latest Strategic Partnership Programme
TM, Malaysia’s leading converged telco and technology company, has today entered into a MoU with ZTE Malaysia Corporation Sdn Bhd (ZTE), a global leader in information and communication technology solutions, to collaborate on a range of research and development innovations under its latest strategic partnership programme. The partnership will leverage TM and ZTE’s joint expertise to drive innovation and digital transformation for customers and industries, focusing on R&D opportunities and commercialisation, product and technology improvement, and the enhancement of TM’s digital talent ecosystem. The collaboration will also serve as an important step towards strengthening the nation’s digital and telco infrastructure, and empower Malaysia’s competitive edge in delivering cutting-edge solutions to the marketplace. Slated to run for a period of three years, the MoU was presided over by YB Fahmi Fadzil, Minister for Communications and Digital; YB Teo Nie Ching, Deputy Minister for Communications and Digital; Tan Sri Mohamad Salim Bin Fateh Din, Chairman; and Dato’ Mohd Ali Hanafiah Mohd Yunus, Chief Operating Officer for the Malaysian Communications and Multimedia Commission respectively. The MOU was signed by TM’s Group Chief Executive Officer, Dato’ Imri Mokhtar and ZTE’s Managing Director, Mr. Steven Ge. Building on TM and ZTE’s ongoing investments and commitment to R&D and innovation, the partnership aims to deliver new products and services, with TM serving as ZTE’s preferred business partner to deploy innovative solutions, go-to-market strategies, commercialisation, and networking across various markets and customer segments in Malaysia and regionally. The companies will also work on network and technology planning and overall digital transformation by bringing together Software as a Service (SaaS), Platform as a Service (PaaS), and Anything as a Service (XaaS) providers to develop customised end-to-end solutions for various industry sectors. Aside from technological developments and aligning with TM’s transformation as a human-centred TechCo, the collaboration will focus on enhancing TM's digital talent ecosystem, covering areas such as talent competency best practices, professional competency framework, technical training and certifications for digital transformation, as well as cross-border knowledge sharing on new technologies. Dato’ Imri Mokhtar, TM’s Group Chief Executive Officer, said: “We are pleased to partner with ZTE once more in providing new innovations that will serve today’s digital customers and industries. Spearheading these efforts will be TM’s R&D arm who will provide hardware testing and design enhancement, consultation on digital platform technologies, as well as integration solutions to ensure our offerings are market-ready. This MOU comes on the heels of another recent joint research in next generation access technology to enhance Malaysia’s high speed internet connectivity. Introducing the first ever 50Gbps bandwidth in Malaysia has prepared us to drive other innovative services such as 5G, Cloud VR, and intelligent manufacturing which will benefit communities, businesses and the Government.” Mr Steven Ge, ZTE’s Managing Director, concluded: “As a global leading provider of information and telco technology solutions, we’re looking forward to collaborating with Malaysia’s leading telco player. We’re confident that our collaboration will bring forth new innovations and solutions to address the growing needs of today’s digital markets. ZTE is also committed to supporting TM's digital transformation and talent ecosystem growth through our global expertise and resources. We believe that this partnership will create a win-win situation for both parties and set a new industry standard for strategic collaborations."