27 May 2021

TM turns in solid 1Q2021 performance; strong start to transformation programme

TM turns in solid 1Q2021 performance; strong start to transformation programme Article Header
TM

The Group posted revenue of RM2.81 billion, 9.9% higher from RM2.56 billion in 1Q2020.

A Solid 1Q2021 Performance

Telekom Malaysia Berhad (TM) today reported its financial results for the first quarter ended 31 March 2021. The Group's revenue increased by 9.9% to RM2.81 billion compared to RM2.56 billion in the same quarter last year with an increase in revenue across all business lines – unifi, TM ONE and TM WHOLESALE.

Ongoing cost improvement initiatives continued to show results with total operating cost ratios (% cost to revenue) improving from 88.1% last year to 79.7%, supporting both revenue growth whilst optimising cost efficiency across direct costs, manpower, other operating costs and depreciation and amortisation.

Group EBIT for 1Q2021 rose by 80.8% YoY from RM326.1 million in 1Q2020 to RM589.7 million, on the back of higher revenue and better operating costs efficiency. This subsequently led to a strong 113.4% YoY growth in Group PATAMI from RM152.5 million last year to RM325.5 million.

In 1Q2021, the Company invested 8.8% of revenue in capex amounting to RM247.0 million as it continued to modernise its network and technology platforms towards delivering current and future solutions for customers. Of the amount invested, 69% was for network access including JENDELA (fibre broadband expansion), 12% for core network, and the balance 19% for support systems.

TM expects to meet the 2021 market guidance announced in February with revenue growth to be flat or single digit growth, EBIT to be more than RM1.6 billion and CAPEX guidance to be between 14% to 18% of revenue.

1Q2021 Business Highlights: A Strong Start to the New TM Transformation Programme

The 'New TM' Transformation Programme (2021-2023), anchored on 40+ Value Programmes focusing on customer experience, revenue, cost efficiency and a future proof organisation, has seen a strong start with quarterly growth across all lines of business and improved operations.

unifi maintains its strong momentum and convergence leadership with 11.9% YoY growth in fixed broadband customers to 2.44 million, with the highest ever quarterly fixed broadband customers net additions of 110k, driven by growth of unifi customer base. Whilst the MCO since 2020 has increased demand for fixed broadband, unifi has successfully converted this demand with its compelling unifi convergence proposition under the #unifiyourworld campaign, providing the best customer value for broadband, mobile and content via unifi Plus Box.

This growth was also supported by the higher number of ports deployed and wider fiber network roll-out under the JENDELA programme, which TM surpassed its 1Q targets achieving 141% of its commitment. TM is also expanding the pool of network contractors to increase the capacity of its fiber expansion programme in the coming quarters.

unifi also focused on continuously improving customer experience and accelerated its Streamyx migration programme in Q1 2021 to enable more customers enjoy higher speed broadband. WiFi optimisation is also an important part of getting the best internet experience, hence unifi also continues to promote the take up of Mesh WiFi to its new and existing customers. Meanwhile, its IT systems are also undergoing enhancements to provide better customer experience and cost optimisation via simplification and consolidation of platforms. Notably, unifi rolled out a new order management system that reduces order processing time by more than 60%, to improve customer experience across its sales touchpoints.

TM ONE continues to enable the digital transformation journey of enterprise and public sector customers with a comprehensive suite of connectivity, data centre, Cloud, cybersecurity and smart solutions. After cautious spending in 2020, customers are now accelerating their digitalisation, and this has translated into new sales and contract renewals to provide comprehensive digital solutions, especially in key verticals such as oil and gas, the banking and financial services industry (BFSI) as well as from higher broadcast, ICT and customer projects.

There is also greater traction seen for Cloud services from the Enterprise segment; whilst discussions are ongoing to support public sector data migration, as the Government's sole local Cloud Service Provider (CSP) under the MyDIGITAL blueprint.

TM WHOLESALE is the preferred network infrastructure provider supporting the technology industry and is positioning Malaysia as a digital hub with strong demand from domestic and international telco and technology operators; including hyperscalers.

On the home front, TM as the leading infrastructure partner for High Speed Broadband wholesale services, leveraged its superior network nationwide to support the industry's broadband growth. It is also the primary mobile backhaul infrastructure provider for the industry, which saw growth in coverage and capacity through dynamic offerings of these services. TM also recorded growth in terms of its Wholesale Data Services.

Towards establishing Malaysia as an ASEAN digital hub, TM strengthened its partnership ecosystem with international carriers and hyperscalers registering higher revenue for International Data Services as compared to last year. TM expanded its portfolio of data centre customers with more major Asian and US hyperscalers co-locating at the nation's only Tier III twin core data centres at Iskandar Puteri (IPDC) and Klang Valley (KVDC). Its wholesale Content Delivery Network (CDN) services also expanded its digital media delivery network ecosystem with more new customers in 1Q2021.

TM remains committed to sustainable growth, with continued emphasis on Environmental, Social and Governance (ESG), maintaining its strong track record as one of the 75 Bursa companies on the FTSE4Good Bursa Malaysia Index, with the full rating of 4/4.

  • Environment: TM complies with the Environmental Quality Act 1974, and has reduced its annual carbon emissions by 13%; integrating sustainable practices in all areas of operations.
  • Social: TM ensures the safety and health of customers and Warga TM with special working arrangements implemented and enhanced Standard Operating Procedures (SOPs) towards business and customer service continuity. TM also supports the nation and communities in need through connectivity initiatives such as Jaringan Prihatin, CERDIK, MYBAIKHATI and other humanitarian aid.
  • Governance: Committed to uncompromising integrity, TM continuously assesses the Group's corruption risk and ensures its corruption mitigation practices are independently certified.

Imri Mokhtar, Managing Director & Group Chief Executive Officer commented:

"We began 2021 with a positive momentum and a strong start to our 'New TM' 2021-2023 Transformation Programme. We are pleased to report a solid year-on-year performance despite these unprecedented times. We delivered good growth with our revenue up 9.9% YoY to RM2.81 billion, contributed by strong demand from our unifi, TM ONE and TM WHOLESALE customers. Coupled with our continuous cost efficiency initiatives, EBIT significantly improved 80.8% YoY to RM589.7 million and PATAMI doubled to RM325.5 million as compared to the first quarter of 2020.

Under the 40+ Value Programmes, TM is reshaping our workforce into a stronger execution engine, embracing a more agile work culture with future-ready skills; focused on growing with our customers towards a more digital society, businesses, public sector services and technology industry.

TM reiterates our leading role in accelerating Digital Malaysia through digital connectivity, digital infrastructure and a digital workforce. As an essential enabler, we are ready to play a leading role in the execution of both, the JENDELA implementation plan and the realisation of the Malaysia Digital Economy Blueprint (MyDIGITAL); leveraging on our comprehensive connectivity, digital infrastructure and innovative solutions.

We are also committed towards sustainable growth, with increased emphasis on ESG by our Board and management. We remain focused on our ESG sustainability journey. I am pleased to update that we maintained our track record as one of the 75 Bursa companies on the FTSE4Good Bursa Malaysia Index, with a full rating of 4/4.

With this encouraging set of overall results, we are on track to meet our 2021 market guidance and look forward to delivering greater customer experience and shareholder value with our New TM Transformation Programme."

YOU MAY ALSO LIKE

TM Further Accelerates Its Sustainable Development

TM is pleased to announce the publication of its inaugural Task Force on Climate-related Financial Disclosures (TCFD) report and this significant step underline the Group’s commitment to sustainability, transparency, and responsible business practices, reinforcing its position as a leader in the industry.   The TCFD report provides transparency around the financial implications of an organisation’s climate-related risks and opportunities. With this 2022 report, TM is taking a proactive approach in understanding, assessing, and managing climate-related risks and opportunities, which will enable TM to strengthen its risk management practices, drive innovation, and ensure the long-term sustainability of its business operations.   TM’s 2022 TCFD report is launched 2 years ahead of Bursa Malaysia’s December 2025 target requirement for public listed companies to align their reporting with TCFD. TM is in alignment with 9 out of 11 TCFD recommendations for the financial year ended 31 December 2022. Bursa Malaysia released this criterion in 2022 as part of its enhanced sustainability reporting requirement.   “Towards becoming a human-centred TechCo, we are aware of our role in facilitating Malaysia’s transition towards a low-carbon future. Through this TCFD exercise, we have sought to build upon our existing initiatives and provide a future-focused examination on how climate change will impact our business. These insights will provide an important foundation that will enable us to continually improve our responses to climate change across each aspect of our value chain,” said Razidan Ghazalli, Group Chief Financial Officer, TM who also spearheads TM’s TCFD taskforce.   "Our decision to embrace TCFD reporting demonstrates our dedication to upholding the highest standards of environmental, social, and governance practices," said Datuk Imri Mokhtar, Group Chief Executive Officer, TM. "We believe that by being transparent and accountable for our climate-related risks and opportunities, we can create long-term value for our stakeholders, strengthen our resilience, and position ourselves as an industry leader in sustainable business practices,” he further added.   Developed in 2022, TM’s ESG Roadmap sets forth a clear vision, commitments, and execution plans across the three pillars of environment, social, and governance.   As part of its efforts to combat climate change, TM launched several impactful initiatives aimed at achieving its goal of reaching net zero emissions by 2050. In 2022 alone, significant strides were made, including:   Renewable Energy-Powered Data Centres - Three of its core data centres are now powered by renewable energy. This transition to clean energy sources significantly reduces carbon emissions associated with data centre operations.   Network Modernisation for Efficiency - By implementing high-efficiency network elements and retiring legacy components, TM ensures that its network infrastructure operates at maximum efficiency. This strategic approach minimises energy waste and aligns with the overall objective of reducing carbon footprint.   Energy-Efficient Air-Conditioning Upgrade - In reducing energy consumption, more than 560 conventional air-conditioning units have been replaced with more energy-efficient inverter air-conditioning systems. This transition to energy-saving technology not only contributes to lower carbon emissions but also leads to substantial energy cost savings.   By incorporating renewable energy, optimising network infrastructure, and investing in energy-efficient technologies, TM is proactively working towards a greener future. With the ESG Roadmap as a guiding framework, the Group is dedicated to creating long-term value for its stakeholders while minimising environmental impact. Its unwavering commitment to sustainability extends beyond climate action to encompass social responsibility and sound governance practices.   TM is committed to advancing its sustainability agenda by accelerating its transformation into a human-centred TechCo, in pursuit of a sustainable future and positive change within the industry and communities it serves. For more details on TM’s sustainability commitments and approach, visit tm.com.my/sustainability.  

Jangkau Digital TM Reimagines Kampung Mukut, Pulau Tioman as Malaysia’s First Smart Eco-Village, Driving Rural Digital Inclusion and Nation-Building

KUALA LUMPUR, 14 August 2025 – Telekom Malaysia Berhad (“TM” or “the Group”) has identified Kampung Mukut, Pulau Tioman as the first village for its inaugural Jangkau Digital programme, reimagining the small coastal settlement as a Smart Eco-Village that blends digital connectivity, economic empowerment, education, and environmental stewardship. The initiative is aligned with the Government’s call for organisations to contribute in uplifting rural communities through sustainable and inclusive development. Home to just over 100 residents, Kampung Mukut is renowned for its crystal-clear waters, lush rainforests, serene waterfall, and the towering Dragon Horns of Tioman. Its remoteness has also meant limited access to connectivity and public infrastructure, challenges that Jangkau Digital seeks to address while preserving the village’s unique culture and biodiversity. The programme in Mukut was officially launched by His Royal Highness The Sultan Pahang, Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah, during his recent visit to the village. Amar Huzaimi Md Deris, TM’s Managing Director and Group Chief Executive Officer said, “Jangkau Digital TM is about building the right foundations for communities to thrive, from expanding digital access, to unlocking new economic opportunities, nurturing future-ready talent, and safeguarding environment. It reflects our role as a nation builder, ensuring that even the most remote communities are part of Malaysia’s digital future. In Mukut, we are working closely with the community and the Tioman Development Authority as our strategic partner to demonstrate that rural and island villages can progress sustainably, while preserving the heritage and natural beauty that make them unique.” Digital Foundation for Inclusive Growth The transformation begins with robust digital infrastructure across Pulau Tioman. The 75km submarine cable from Kuala Rompin that was deployed by TM, forms the backbone that connects the entire island to Malaysia’s national digital network, effectively bringing the world to Tioman and Tioman to the world. This is followed by the rollout of high-speed fibre broadband and expanded mobile coverage that now reaches all key settlements and tourism hotspots. This upgrade ensures that residents, businesses and visitors across Tioman enjoy stable, high-quality internet access, a critical enabler for economic activity, education, and tourism. In Kampung Mukut, this connectivity has been further strengthened with the installation of outdoor WiFi spanning the village from the jetty and school to the mosque, eateries, homestays, and along scenic trails, enabling tourists to navigate, locals to run online businesses, and students to participate in virtual learning without interruption. Complementing this, TM’s Vision AI CCTV systems have also been deployed at strategic points to improve public safety, manage visitor flows and support responsible tourism in line with Mukut’s eco-tourism appeal. MSME Empowerment & Economic Upliftment With strong digital connectivity as the foundation, entrepreneurs in Mukut are now better positioned to tap into the digital economy. Tourism operators, guesthouses, and boat service providers have been onboarded to visitmukut.com – a community-managed tourism portal powered by TM and enhanced with AI to deliver an end-to-end experience, from discovering Mukut’s natural beauty to booking and engaging with local operators. This is integrated with the Unifi Business Go Bookit app for seamless visitor experiences. This transition to online visibility is strengthening business resilience, particularly for operators who once depended solely on walk-in visitors. To support this shift, TM will conduct targeted training sessions to equip local MSMEs with skills in booking management, social media promotion, and digital content creation, with additional support extended to B40 entrepreneurs via the Sejahtera MADANI programme. By building these capabilities, TM aims to ensure that the economic benefits of tourism are shared more broadly across the community, while positioning Mukut as a destination that is digitally accessible. Equipping Students and Teachers for the Future The Jangkau Digital TM also brings the TM Future Skills (TMFS) to SK Mukut as the Champion School. SK Mukut is now linked to SMK Tekek, Tioman’s “nucleus” digital hub school, enabling resource-sharing and access to advanced digital tools. Through this collaboration, students are exposed to coding, robotics, 3D printing and AI learning modules – subjects that previously seemed out of reach in rural settings. Teachers in Mukut also benefit from training programmes that help them integrate STEM content into lessons and maximise the use of digital tools. Beyond the classroom, TM is investing in capability building for the community’s core sporting tradition - sailing. Efforts include upgrading essential infrastructure such as dedicated walkway and slipway to provide safe and convenient access to the waterfront. The Group also goes the extra mile by providing a comprehensive coach training and talent development programme, and providing official sports attire for the school’s sailing team. These initiatives are designed to inspire the students, enhance competitive readiness, and cultivate a new generation of talent capable of competing at the highest levels. This integrated approach ensures that Mukut’s youth can excel both in academics and in sports, proving that rural communities can nurture future champions on multiple fronts. Preserving Environment and Biodiversity In preserving Mukut’s charm, TM is embedding environmental stewardship into every aspect of development. The village’s coral reefs, rainforest trails, and marine biodiversity are recognised as irreplaceable assets, and planned coral protection and trail conservation programmes will ensure these remain intact for future generations. TM’s sustainability commitment extends to the seabed where the presence of submarine cables naturally fosters the formation of artificial reefs, providing vital habitats for marine life and cultivating to long-term biodiversity ecosystem. To further support eco-tourism safety, TM is enhancing measures to ensure the safety of both tour guides and hikers on treks to the Dragon Horns including providing GPS trackers and other digital solutions, helping Mukut maintain its reputation as a safe, well-managed destination for adventure tourism. By combining digital technology with environmental care, Jangkau Digital TM reinforces the idea that progress in rural communities can go hand in hand with sustainability. Greater Purpose of TM “Our aspiration to become Malaysia’s Digital Powerhouse by 2030 is grounded in our greater purpose to enable progress that is inclusive, sustainable, and meaningful for all. When students in Mukut can explore robotics, local entrepreneurs can reach customers worldwide, and young athletes can train for national glory, all while preserving their environment, we see the true value of digital transformation. Jangkau Digital TM in Mukut is just the beginning, and we are committed to extending this progress to other rural islands and communities across the nation,” concluded Amar.

MAYBANK ISLAMIC AND TM FORGE PARTNERSHIP TO DELIVER FIRST ISLAMIC BANKING AS A SERVICE SOLUTION POWERED BY 5G

KUALA LUMPUR, 15 FEBRUARY 2024: Maybank Islamic Berhad and TM, the nation’s leaders in Islamic banking and telecommunications, have forged a partnership to deliver the country’s first Islamic Banking as a Service (BaaS) solution powered by 5G. Designed for consumers and micro, small and medium enterprises (MSMEs), this collaboration combines the best of Maybank Islamic’s diverse financial services and TM’s recognised Uni5G Postpaid Biz mobile packages, creating seamless access and experiences for today’s digital customers. With local entrepreneurs and MSMEs to gain the most, Maybank Islamic and Unifi Business, TM’s digital business solutions arm, today launched their inaugural ‘Go Niaga’, a mobile business banking bundle to help businesses manage finances, improve incomes and offer digital payment options powered by secure 5G connectivity and networks. The bundle will address current market gaps among this segment, and enable businesses to better participate in e-Commerce and expand their customer reach. Dato’ Mohamed Rafique Merican, Maybank Islamic’s CEO, said, “This partnership between Malaysia's largest telecommunications company and the country's leading Islamic banking institution opens up unique opportunities for us in delivering Islamic banking services to customers. This partnership is a significant step forward in financial inclusion. By embedding Maybank Islamic’s BaaS solutions within Unifi Business’ platforms, previously unbanked or underbanked individuals and businesses will gain access to Maybank’s essential financial services and 5G mobile connectivity through TM’s cutting-edge technologies.” “While the technology originates from the BaaS concept, what makes it unique is its adherence to Islamic principles, making it the pioneering example of its kind in Malaysia. It combines modern technology with the ethical requirements of Islamic finance, providing innovative and faith-based financial services,” he said. Shanti Jusnita Johari, Chief Commercial Officer for Consumer Strategy & Business at Unifi, said, “MSMEs are a key growth engine for the nation’s economy. At present, this segment accounts for nearly 38% of Malaysia’s GDP, yet their potential is often dimmed by limited access to digital tools and financial services. This is even more apparent among underserved segments, micro and small businesses who face the most challenges in accessing financial services and digital innovations that are necessary to elevate their lives and livelihoods. “As a trusted partner to more than 400,000 MSMEs across the nation, we believe this partnership is a timely intervention to effectively address these challenges and help local businesses seize the opportunities of the digital economy. This partnership is the next milestone in our vision to become a digital powerhouse by 2030 and our mission to power a Digital Malaysia, improving businesses and communities through technology, and paving the way for a digitally inclusive nation,” Shanti shared.   Highlights of Maybank Islamic and Unifi Business’ Go Niaga offering As the first bundle from Maybank Islamic and Unifi Business’ joint collaboration, the Go Niaga mobile business banking bundle aims to address the essential banking needs of local entrepreneurs and MSMEs. To help local businesses streamline their operations, the Go Niaga bundle offers: a)    A lower minimum deposit of only RM 100 for customers to open an SME First Account-i – allowing them to clearly segregate their personal and business accounts that will help improve their long term credit rating. b)    Payment acceptance facilities through Maybank Islamic’s QRPay Biz, and Tap2Phone – enabling cloud POS via mobile devices to facilitate digital / card payments. c)    Credit Facilities including Maybank Islamic’s SME Digital Financing: Aspirasi Wanita Programme – providing more entrepreneurs access to funds that could help them stabilise and expand their business. d)    Uni5G Postpaid Biz 39, Uni5G Postpaid Biz 55 and Uni5G Postpaid Biz 89 mobile plans bundled with free 5G mobile devices – ensuring secure access to financial services anywhere, anytime and bringing 5G capabilities to more communities. e)    Cash rebates for Unifi Mobile bills when customers sign up and activate Maybank Tap2Phone merchant payment facility bundled with Uni5G Postpaid Biz packages. This initial offering will be made available from 21 February until 29 May 2024. Customers are welcome to visit selected Unifi Stores on Tuesdays, selected Maybank branches on Wednesdays and selected Pusat Ekonomi Digital (PEDi) nationwide on event days, to find out how they can benefit from these offerings. For more info, please visit maybank.my/goniaga or http://biz.unifi.com.my/goniaga

NEWSLETTER

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