25 Feb 2022

TM announces another steady full year performance (FY2021) with EBIT up 6.6% at RM1.71 billion; revenue up 6.4% at RM11.53 billion; declares 6 sen per share dividend

TM announces another steady full year performance (FY2021) with EBIT up 6.6% at RM1.71 billion; revenue up 6.4% at RM11.53 billion; declares 6 sen per share dividend Article Header
TM

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%

 

 

YOU MAY ALSO LIKE

23 Aug 2021
TM R&D wins Global Business Outlook Awards 2021 for its innovation, CAMELIA

The Company’s solution CAMELIA bagged the Most Innovative Digital Infrastructure Services Provider in Malaysia at UK-based Global Business Outlook Awards 2021 ​Telekom Research & Development Sdn Bhd (TM R&D), the innovation arm of Telekom Malaysia Berhad (TM) recently bagged the Most Innovative Digital Infrastructure Services Provider in Malaysia for its solution called CAMELIA at the UK-based Global Business Outlook Awards 2021. The award was conferred to TM R&D in recognition of its achievement for developing CAMELIA, which is set to become one of the digital transformation enablers for network operators to handle end-to-end processes for service assurance in TM. Commenting on the achievement, Dr. Sharlene Thiagarajah, Chief Executive Officer, TM R&D said, “This is indeed a proud moment for us. Winning this award at the global front illustrates our continued commitment to develop solutions together with TM Group as part of our collaborative efforts to ensure the successful adoption of Artificial Intelligence (AI) and digital innovations amongst our stakeholders.” “Thank you to the Network Operations, Customer Experience and Information Technology & Digital teams in TM for their continuous support and for incorporating CAMELIA into their operations which we believe will ultimately lead to an elevated customer experience. This recognition gives us the boost and drives us to explore more innovations for TM Group to serve a more digital society, business, industry and Government, towards accelerating Digital Malaysia,” she added. CAMELIA is an intelligent analytical platform that can provide the network’s health condition, fault diagnostics and localisation, and can predict potential service as well as line failure up to 30 days in advance. In addition, CAMELIA provides early warning alerts that shall help to transform processors from a reactive based troubleshooting process to a proactive one with the goal of improved quality of service and faster incident resolution. As an enabler, CAMELIA integrates with other operating systems to monitor all subscriber lines 24 hours and provide early detection. Early filtration can isolate the problem whether it is at the physical network element layer or a service layer. Global Business Outlook Awards recognises and rewards excellence in businesses around the world. It is designed to facilitate the outstanding work of businesses and business leaders across a myriad of industries – assessing their work in terms of performance, innovation and drive to create the industry value. This is the 2nd international award received by TM R&D this year for its work in AI and digital ecosystems development supporting the telco industry, which is a step forward in achieving its mission to build a smarter digital ecosystem. Established in 2001, TM R&D is the innovation arm for TM Group focusing on creating smarter ecosystems to make business and life easier for a better Malaysia. TM R&D’s solutions are clustered around four (4) pillars namely Intelligent Platforms, Data Brokerage, Connectivity/Tools and IR4.0/Digital Solutions. Growing from strength to strength since 2016, TM R&D has won multiple global awards and generated more than 2,800 Intellectual Property Rights (IPRs) and 1,400 digital assets to date. TM R&D’s innovations are all developed in-house and cut across multiple verticals such as Utilities, Retail, Agriculture, Healthcare and Education with safety and productivity as the top priority. For more information about TM R&D and its innovations, visit www.tmrnd.com.my or email your inquiry to business@tmrnd.com.my or follow them on LinkedIn (TM Research & Development) for more news and updates.

27 May 2022
TM One-UC Tati collaboration to enhance Terengganu’s tech research and development; enables education equity for students in the state

The Master Services Agreement (MSA) between TM & UC TATI will enable the digital transformation initiatives of this state government university college TM One, the enterprise and public sector business solutions arm of Telekom Malaysia (TM), has signed a Master Services Agreement (MSA) with University College Terengganu Advanced Technical Institute (UC TATI) to provide high speed managed data and Internet services at its Teluk Kalong Kemaman Campus and Kuala Terengganu City Campus respectively, for the benefit and use by the students, lecturers and staff. The partnership, which includes a complete end-to-end package of both Wide Area Network and Local Area Network effectively enables wireless connectivity throughout the campuses, and is part of the Terengganu-based institution's efforts to enhance its digital research and development field, as well as delighting student experiences post pandemic. In particular, TM One’s high-speed Internet services will support the Terengganu Big Data Institute (BDIT) located at UC TATI to conduct research and activities related to public data for the university college and the Terengganu State Government. With this, TM One enables UC TATI to explore new digital technologies such as Cloud-Based Services, Public Data and Disaster Recovery Centres that will enhance student learning as well as potentially serve the local Government and surrounding communities. General Manager of State Sales for TM One, Jamalullail Mohd said, “This agreement symbolises the strong partnership between TM One and UC TATI to provide next gen connectivity services for more contextual teaching and learning experiences to students. The accelerated adoption of digitisation has impacted the lives of Malaysians everywhere, with access to fast and reliable Internet services becoming a necessity in households, workplaces and learning institutions. This collaboration ensures educational equity and equal access to students from all parts of the country and we are pleased to support UC TATI in their transformation.” "This collaboration will also be a catalyst for UC TATI in its digital transformation journey and is among the first steps for us to meet the IR 4.0 revolution. In addition to enhancing our research and development efforts into Big Data and other key technologies, this Internet service will enhance the university's operational efficiency, teaching and learning, and overall student experiences – especially for those who are resident on-campus. Working with TM One enables us to improve our capabilities and the quality of our services in these fields and to bring our institution into the next phase of its growth," explained Professor Dr. Anuar Bin Ahmad, Rector of UC TATI.

03 Jul 2023
TM Wins Big at PC.Com Awards 2023

TM continued to solidify its position as Malaysia’s most trusted converged telco and technology company, when it was recognised with four (4) main awards at PC.com Awards 2023 held recently, including CEO of the Year award, won by its Group Chief Executive Officer, Datuk Imri Mokhtar, making the night a special and memorable one for the Company.   The other three (3) awards included “Best Fixed Broadband Service Provider” by Unifi, Unifi Business secured “Best Business Fixed Broadband Service Provider” and “Best Enterprise Telco” went to TM One.   Present to receive the awards on behalf of TM were Shazurawati Abd Karim, Executive Vice President, TM One; Anand Vijayan, Executive Vice President, Unifi; and Ts. Mohamad Yusman Ammeran, Head of SME, Unifi Business, along with the CEO of the Year award winner Datuk Imri Mokhtar.   When accepting the CEO of the Year award, Datuk Imri said: “I am receiving this award on behalf of our 19,000 strong Warga TM nationwide. This award truly belongs to all Warga TM. Your camaraderie and your commitment is an inspiration to me and to everyone.   “I would like to extend our utmost appreciation to all our customers - our home, SME and enterprise customers - for your trust in TM to serve your needs. A special appreciation also goes to our delivery ecosystem, including our partners. Without all of you, we couldn't have achieved what we have achieved, and we couldn’t overcome the obstacles that we had overcome. So once again, thank you very much to everyone.” He further thanked PC.com for the accolade and acknowledgement.   “Voted as the winner in three categories under Telecommunication and Network, reflected our position as the top performer and the preferred choice among the industry players. We deeply appreciate the unwavering support, trust, and loyalty from our customers; these have been the cornerstone of our success bringing us this far. We will continue to innovate and humanise technologies, so we can deliver more interesting and comprehensive offerings in home, mobile and entertainment services to serve the needs of Malaysians, towards shaping a Digital Malaysia,” concluded Datuk Imri commenting on the wins.

NEWSLETTER

Just drop your details and stay updated with the world of Telekom Malaysia. We promise – no spam!​