In the second year of its Transformation, the Group is on track to achieve its 2022 market guidance, focusing on strengthening its core businesses and investing in new growth areas
Telekom Malaysia Berhad (TM) continued its growth trajectory and long-term business sustainability, recording a steady performance in its First Quarter ended 31 March 2022 as compared to the same period last year (YoY).
The Group's operating revenue increased by 2.9% to RM2.89 billion, compared to RM2.81 billion in the same quarter last year, driven primarily by increased demand for voice, Internet and multimedia. Despite rising competition to offer converged solutions among telco and other technology players, TM continued to deliver strong customer growth across its operations.
Capitalising on its core businesses and investing into new growth areas, TM further ramped up its transformation initiatives, delivering profit after tax and non-controlling interests (PATAMI) for the quarter at RM339.9 million or 4.4% higher than the RM325.5 million recorded in 1Q2021. The Group also recorded lower financial costs subsequent to the early redemption of its RM2.0 billion sukuk in March 2021, as well as lower foreign exchange translation losses on borrowings. The Group has applied the Cukai Makmur statutory tax rate accordingly for the current quarter.
Accelerating into the second year of its Transformation, TM brought forward its manpower optimisation to enable earlier realisation of expected benefits to the Group. This, along with foreign exchange impact on trade settlement has led to a 5.0% decrease in EBIT at RM560.4 million for 1Q2022 compared to RM589.7 million in the same quarter last year. Excluding these costs, the Group's underlying EBIT is 14.0% higher at RM650.2 million compared to RM570.5 million in 1Q 2021. Free Cash Flow is lower by 15.1% at RM658.8 million compared to RM775.7 million due to higher CAPEX as the Group continues to invest in business expansion and meeting customers' demands through technology refresh and network delivery, ensuring steady growth.
unifi: Double-digit revenue and subscriber growth
unifi continued its growth performance, recording revenue increase of 10.6% from RM1.25 billion to RM1.38 billion in the current quarter. Sustained by increasing demand from Internet, voice and sales of devices, with cumulative fixed Internet subscribers increasing by 17.5% against the corresponding quarter last year. unifi remains the largest growth contributor for the Group.
unifi will continue to maintain its leadership in fixed broadband and enhance its Fixed-Mobile Convergence (FMC), enriched with TV and streaming content. This reflects its commitment to improve its FMC customer experience with better and seamless service. unifi will also grow its SME digital platform as a one-stop service centre for solutions catering especially to SMEs nationwide.
TM Wholesale (TMW): Higher revenue from increased demand for data services
TM Wholesale (TMW) also recorded a growth performance for 1Q2022, with revenue increasing by 1.2% from RM631.9 million in 1Q2021 to RM639.5 million, mainly contributed by higher revenue from voice and data services. This was underpinned by increasing demand from High-speed Broadband Access (HSBA) and higher International Voice and Data.
To date, TMW continues to enable industry broadband and 4G network via its fibre infrastructure, with the ongoing 5G rollout further strengthening that role. On the international front, it will continue to serve other OTTs and hyperscalers with connectivity and data centres, while regionally, TM Wholesale aspires to establish Malaysia as a digital hub for ASEAN via new submarine cables, enhanced data centre solutions and edge computing.
TM One: Renewed focus on growing B2B digital solutions market
TM One, the Group's enterprise and public sector arm, recorded a 7.4% decrease in revenue from RM925.2 million to RM856.8 million in 1Q2022 due to decline in data services revenue.
Strengthening and growing its B2B digital solutions, TM One has focused its efforts on high potential industry verticals, namely healthcare, manufacturing, education, oil & gas, banking, financial services & insurance (BFSI) and public sector. It has entered a partnership with Tune Protect and Huawei Malaysia that saw Tune Protect becoming the first organisation in Malaysia to host an insurance core system on public cloud (Cloud αEdge).
Commentary and Outlook from Imri Mokhtar, TM Group Chief Executive Officer
"With our economy and borders reopening, TM is powering Malaysia's journey on its road towards recovery, by ensuring the vision of an inclusive and extensive Digital Malaysia becomes a reality.
"Into the second year of our Transformation, we are focused on strengthening our core business while investing into new growth areas to meet customers' demands. In ensuring sustainability in the long run, we continue to grow our profitability to invest and seize opportunities arising from digital acceleration.
"One of these opportunities is in the exciting space of digital solutions and services for enterprises. Building on TM One's existing capability and relationships with enterprises and the public sector, we will deliver speed and agility through our new digital arm Credence: a corporate start-up led by technology leaders.
"unifi continues to better its fixed broadband and Fixed-Mobile Convergence value proposition to improve customer experience, while expanding our offerings to provide quality entertainment to customers at home or on-the-go.
"We have also achieved some key milestones in our sustainability efforts. TM One has successfully secured the Green Electricity Tariff from Tenaga Nasional Berhad for its data centres in Kuala Lumpur, Cyberjaya and Johor Bahru, contributing to a lower carbon footprint as the demand for cloud storage inevitably increases. This is in addition to the existing Green Building Index (GBI) certification earlier obtained for its core data centres. TM's broader ESG commitment also remains consistent with Malaysia's initiatives towards achieving net-zero Greenhouse Gas emission for the country by 2050.
"Meanwhile, TM Wholesale continues to establish Malaysia as a regional digital hub via new submarine cables, edge computing, data centres and supporting international connectivity. On the domestic front, TM Wholesale continues performing its role as the enabler for industry broadband, 4G and 5G network via fibre infrastructure that will transform the nation's connectivity capabilities."
YOU MAY ALSO LIKE

TM Registers Higher Profits in FY2023, Sustaining Resilient Performance
KUALA LUMPUR, 23 February 2024 – Telekom Malaysia Berhad (“TM” or “the Group”), today announced its financial results for the year ended 31 December 2023 (FY2023), with the Group reporting higher revenue and profitability compared to FY2022. This performance reaffirms the Group’s resilience in the competitive market landscape. During the year under review, the Group registered a higher revenue of RM12.26 billion compared to RM12.1 billion in FY2022 propelled by the strong performance of Unifi and TM Global. Specifically, Unifi’s fixed broadband subscriptions experienced a 3.1% growth, reaching 3.13 million, while TM Global’s revenue grew from heightened demand for domestic and international data services. The Group’s Earnings Before Interest and Tax (EBIT) remained flat at RM2.09 billion in FY2023 due to higher operational costs. Meanwhile, the Group’s Profit After Tax and Non-Controlling Interest (PATAMI) rose 63.6% from RM1.14 billion to RM1.87 billion due to a lower net finance cost and tax impact. The Group’s capital expenditure (CAPEX) in FY2023 stood at RM1.9 billion, or 15.9% of its revenue. These investments were primarily aimed at expanding the Group’s network infrastructure nationwide and regional submarine cable system. TM declared a 2nd interim dividend and final dividend totalling 15.5 sen per share amounting to approximately RM594.9 million, demonstrating its commitment to delivering shareholder value. Reflecting on the FY2023 performance, Amar Huzaimi Md Deris, TM’s Group Chief Executive Officer said, “I am pleased to share that TM has sustained its performance amidst challenging regulatory landscapes, heightened competition, and evolving market dynamics. “Our convergence solutions, paired with attractive packages have continued to appeal to our customers, reinforcing our position as the only Fixed Mobile Convergence with quad-play in Malaysia. The ongoing expansion of our nationwide fibre coverage, coupled with the enhancement of our data and network infrastructure, have also contributed to our growth. We remain committed to promoting digital inclusivity and wider digital adoption while addressing the evolving needs of our customers, both domestically and internationally,” said Amar. “Furthermore, 2023 marked the completion of our initial three-year transformation phase during which we have further solidified our position in the local and global telecommunication landscape. Advancing into the next level of our transformation journey, we are now focused on evolving into a Digital Powerhouse by 2030, while positioning Malaysia as a digital hub for the region. Our commitment aligns with the nation’s aspiration of becoming a fully integrated digital society, ensuring that we continue to play a key role in the era of digital innovation,” Amar concluded. Unifi maintains leadership in converged solutions Unifi maintains its leadership in converged offerings of fixed broadband, mobile services, digital content and solutions for both consumers and MSMEs, recording RM5.66 billion in revenue. Unifi’s fixed broadband segment grew 3.1% to 3.13 million subscribers, driven by strategic convergence campaigns and aggressive customer retention efforts. Unifi’s latest offering, the #Unstoppable UNI5G Postpaid and Mobile Family Plans, is designed to enhance the 5G connectivity experience for Malaysians. The newly launched Unifi TV Originals provides a wide array of unique, diverse and locally tailored content for an enriched experience for Malaysian viewers. These further contribute to the Group’s true convergence proposition, providing better value to all customers. As a preferred partner to more than 400,000 MSMEs nationwide, Unifi Business continues to accelerate digital adoption by providing tailor-made solutions, offering them the tools and support needed to thrive in the digital economy. Looking ahead, Unifi will further cement its role as a leader in convergence to deliver unmatched converged digital services. TM One drives innovative solutions for enterprise TM One continues to navigate the market complexities while exploring new growth opportunities. Despite decreased revenue to RM3.14 billion in FY2023, its 4Q23 results showed an increase in revenue of 17.3% versus 3Q23, driven by a surge in solution-based customer projects. TM One has partnered with PLANMalaysia to equip 29 city councils with smart technologies for sustainable and connected urban environment. It was also appointed as the preferred converged digital infrastructure partner for the Sarawak Digital Economy Corporation (SDEC) to materialise aspirations towards the growth of Sarawak’s digital economy. Moving forward, TM One is poised to remain at the forefront of supporting and enabling the digital infrastructure for both government entities and enterprises. With a focus on innovation and strategic partnerships, TM One is set to play a significant role in Malaysia’s digital transformation journey. TM Global positions Malaysia as a digital hub for the region TM Global posted a solid financial performance in FY2023. Its revenue rose 8.7% to RM3.10 billion, primarily from an increase in international data revenue, driven by managed wavelength services for hyperscalers, alongside an uptick in domestic data services. In the domestic landscape, TM Global continues to expand 5G backhaul sites and High-Speed Broadband (HSBB) Access coverage in accelerating digital inclusivity nationwide. Globally, it recorded a year-on-year 30Tbps bandwidth growth and delivered a mega requirement of more than 35Tbps long-term leased connectivity for US-based hyperscaler. TM Global will continue to broaden its digital infrastructure solutions and forge strategic alliances with global carriers to position Malaysia as a digital hub for the region, facilitating seamless digital connectivity and services across borders.

UNIFI TV LAUNCHES ALL-NEW ANEKA PLUS PACK WITH VIDIO, ONE OF SEA’S TOP 3 STREAMING APPS
KUALA LUMPUR, 13 SEPTEMBER 2024 – Unifi TV, Malaysia’s largest platform of premier channels and streaming apps, relaunched its popular Aneka Plus Pack, now bundled with Vidio, Indonesia’s number one streaming app which is also among Southeast Asia’s (SEA) top three platforms. Being the only streaming platform to reach more than 4 million subscribers in Indonesia alone, Vidio’s extensive library of Indonesian content is anticipated to resonate well with Malaysian viewers. Its comprehensive offerings include Vidio Original series Gelas Kaca, Ratu Adil and Santri Pilihan Bunda featuring cast such as Aura Kasih, Dian Sastrowardoyo, Naura Ayu and many more. Jasmine Lee, Unifi’s Chief Commercial Officer, Consumer, said, “Our partnership with Vidio marks an exciting milestone for Unifi TV, enhancing the value we provide our customers with the addition of Indonesia’s number one streaming app. Vidio’s extensive library of premium Indonesian content provides Unifi TV subscribers access to even more channels, TV shows, sports and entertainment options, bundled conveniently with their broadband subscription. “This collaboration reinforces Unifi’s commitment to deliver the most comprehensive convergence suite of fibre broadband, 5G mobile, TV, and lifestyle services as part of our Unifi UniVerse offerings. Integrating Vidio reflects our commitment to continuously add value across our offerings, and exemplifies TM’s Digital Powerhouse aspirations to redefine digital access and experiences for a better future," Jasmine added. Hermawan Sutanto, Managing Director of Vidio, said, "We are thrilled to embark on this journey with Unifi TV and bring our unique content to Malaysian audiences. Vidio excels in premium Indonesian content, entertainment and sports. We believe that we can enrich Unifi TV’s entertainment experience especially given the shared values between Malaysian and Indonesian cultures. “This partnership marks a significant milestone for Vidio, reaffirming our commitment to expanding our footprint and delivering high-quality entertainment beyond Indonesia. We believe this collaboration will pave the way for more international ventures and strengthen our position as a key player in the streaming industry," he added. Vidio is available via the new Aneka Plus Pack, which also includes more than 20 premium channels and three streaming apps for only RM30 a month. An a la carte option is also available to new and existing Unifi subscribers (with and without TV Packs) from only RM8.40 a month. Customers can also enjoy a one-month complimentary viewing from now until 24 September 2024 with the Vidio a la carte subscription. For more information on Unifi TV and its offerings, visit unifi.com.my/tv

TM ELEVATES ITS GLOBAL STANDING, ATTAINS OPEN API DIAMOND CERTIFICATION FROM TM FORUM
KUALA LUMPUR, 18 June 2024 – TM achieves TM Forum Open API Diamond Conformance Certification with 60 certified APIs, surpassing industry giants. This milestone underscores the company's commitment to industry standards and innovation. TM Forum Open API enables seamless connectivity, interoperability and portability across complex ecosystem services. This “API-first” approach fosters collaboration and simplifies integration for developers. With over 770,000 downloads by over 2,700 companies worldwide, TM Forum’s Open APIs are a game changer for the industry. By achieving this certification, TM actively contributes to this global shift. While at the TM Forum: Ignite conference in Copenhagen, Ivan Chong, TM’s Chief Information Officer (CIO) commented, “This certification aligns with our aspiration of becoming a Digital Powerhouse by 2030. We have established a reusable API framework, streamlined high-volume custom APIs and consolidated siloed API gateways into a single cohesive gateway, strengthening our platform play approach. This boosted our system response time by 34%, exemplifying a truly ‘plug and play’ technology capability.” “The standardised Open APIs, tested in real-world deployment, enable faster time to market with 100% reusable and secure APIs from a curated catalogue. For example, by exposing API capabilities such as Digital Solutions to third-party partners, we can accelerate the development of new products and services for Smart Cities, Smart Education and Smart Healthcare. This fosters the creation of more innovative solutions and new revenue streams while adhering to global industry standards,” added Ivan. TM's certification journey started with a Bronze in September 2023 with three APIs and quickly progressed to Diamond with 54 certified APIs in just seven months. Now at 60 certified APIs, TM demonstrates its dedication to agility, innovation, and collaboration. By joining 11 of the world's largest service providers including Vodafone, China Mobile and Telefónica, who have adopted TM Forum's suite of Open APIs for digital service management, TM solidifies its global recognition among industry leaders.