2Q2022 Key Highlights (vs 2Q2021)
- Increased demand for Internet and Data translated to an 11.8% growth in Operating Revenue, at RM3.09 billion compared to RM2.76 billion
- Manpower and other OPEX cost optimisation contributed 81.3% EBIT growth, recorded at RM702.7 million
- PATAMI up 73.0% at RM378.0 million from RM218.5 million, as a result of higher operating profit and lower net finance cost
- Invested 15.7% of revenue in CAPEX or RM484.5 million in fibre expansion, network upgrades and support systems
- Free Cash Flow increased 36.4% at RM730.5 million, mainly attributed to increase in revenue and cost optimisation initiatives
- Interim Dividend of 9.0 sen per share declared with Dividend Reinvestment Scheme applicable (DRS)
- On track to achieve its 2022 market guidance, TM continues to strengthen core businesses while investing in new growth areas
Telekom Malaysia Berhad (TM) has sustained its growth trajectory, delivering an excellent set of financial results across all key metrics for the second quarter ended 30 June 2022, offering converged services and solutions and demonstrating its resilience against increasing competition from other telco and technology players.
The Group’s operating revenue grew by 11.8% to RM3.09 billion, compared to RM2.76 billion in the same quarter last year (YoY), on a foundation of strong performance across every customer segment and a sharp increase in revenue from all lines of service, particularly Internet and Data.
Optimisation efforts enabled TM to record lower manpower and other OPEX costs, which led to higher Earnings Before Interest and Taxation (EBIT), up 81.3% at RM702.7 million compared to RM387.6 million YoY.
Profit After Tax and Non-controlling Interest (PATAMI) was up 73.0% at RM378.0 million from RM218.5 million YoY, on the back of accelerated demand for connectivity, services and digital solutions. The Group applied the 33% Cukai Makmur statutory tax rate accordingly for the current quarter.
In addition to Group-wide cost optimisation initiatives, the revenue jump helped drive an increase of Free Cash Flow by 36.4% to RM730.5 million YoY, putting TM in a solid position to make future investments and further reduce debt.
TM also declared an Interim Dividend of 9.0 sen per share in line with its policy to distribute yearly dividends of 40% - 60% from its PATAMI. The DRS is applicable for this dividend tranche to provide flexibility to shareholders, enabling participation into the Group’s continuous growth momentum.
unifi: Maintaining growth momentum
As the leading convergence provider in Malaysia, unifi recorded a 10.3% revenue increase from RM1,272.0 million to RM1,402.6 million in the current quarter, driven primarily by continuous growth of fixed broadband subscribers, which recorded a 14.1% increase from the same quarter last year.
unifi continues to innovate the home entertainment landscape, rapidly adapting to consumer consumption patterns through more attractive content that can be viewed both at home via high-speed broadband as well as on mobile devices via the playTV@unifi app. Its growing content ranges from Hollywood to Hallyu, offering variety for everyone.
unifi's focus also extended to local SME businesses with the month-long #BelanjaDiSME campaign, as well as the SME Digitalisation Grant (SDG), which provides entrepreneurs with up to 50% savings for internet subscriptions and digital solutions.
TM Wholesale (TMW): Leading the charge in positioning Malaysia as a digital hub
TMW continues its march to be the nation’s preferred network infrastructure provider and to position Malaysia as a digital hub. Revenue for the current quarter increased by 26.4% from RM585.3 million YoY to RM739.9 million, contributed mainly by higher revenue from data and voice services.
TMW’s compelling performance is underpinned by escalating domestic data demand and new deals secured on the international front. It recorded the highest installation for High-Speed Broadband (HSBB) Access in June 2022, driven by mobile network operators (MNOs) and content service provider under JENDELA. TMW also delivered more than 4,500 cumulative 4G and 5G backhaul sites in supporting the MyDIGITAL blueprint for enhanced digital inclusivity nationwide.
On the international front, TMW has secured new deals with a US-based hyperscaler and a North Asian digital provider. Simultaneously, its collaborative agreement with Globe Telecom will enable its customers to enjoy superior gaming experiences, a strategic move to expand its business beyond its telco offerings.
TM One: Stronger performance amidst market challenges
The Group’s enterprise and public sector arm, TM One, recorded an increase in revenue of 4.1% YoY to RM854.6 million, with growth from recurring business across the enterprise and government sectors. Global supply chain challenges and delays, however, continued to impact its operations and subsequent delivery of several customer projects.
As the sole local provider for the Government’s MyGovCloud initiative, TM through TM One, is the only hyperscale cloud provider to offer data residency, data locality and data sovereignty for the Malaysian Government and its citizens. This eliminates potential risks from international regulations, policy interventions, or risk of Malaysian data housed beyond Malaysia’s borders.
Credence: Spearheading TM’s growth into the digital tech space
Responding to the fast-growing market demand for the digitalisation of enterprises, Credence was recently launched to drive greater levels of digital capabilities and technology skills for the Group’s corporate customers.
Established as a start-up, Credence is TM’s new cloud and digital services company, focusing on becoming a trusted technology partner to accelerate the digital transformation of large enterprises and the public sector. Leveraging TM’s existing technology partners and new ventures, Credence will also accelerate the Group’s transformation in the digital tech space.
Commentary and Outlook from Imri Mokhtar, TM Group Chief Executive Officer
“At the mid-point of 2022, our financial performance and results demonstrate TM’s ability to manage our businesses effectively despite the headwinds arising from a challenging and competitive business environment. These results are also a powerful testament of our transformation journey, and our commitment to deliver a sustainable and inclusive Digital Malaysia.
“unifi will continue its trajectory to provide converged solutions to both residential and SME customers. unifi Business, specifically, will double down on its efforts to provide new propositions to engage SME customers including promotional campaigns and financing options.
“TM One remains focused in enabling the digital transformation of the enterprise and public sectors. Complemented by its global partner ecosystem, TM One continues to make inroads on bespoke solutions engineered and supported by its in-house ICT capabilities.
“TM Wholesale is on course to provide a comprehensive suite of advanced wholesale communication services and solutions for both domestic and global fronts. TMW is poised to position Malaysia as a digital hub for the ASEAN region.
“As part of TM’s commitment to empower businesses on their digital transformational journey, the Group will also address the digital and tech skills gap through Credence. This new digital services subsidiary will deliver a differentiated advantage for enterprise digital solutions, providing greater and faster time-to-value with customised options for enterprises.
“Looking ahead, 5G will level the playing field and move the industry away from network-based to service-based competition. TM welcomes the Government’s call for the industry to take up equity stakes in DNB. 5G will open up and expand the opportunities and growth areas for all of TM’s business segments – consumers, SMEs, enterprises, wholesale as well as digital services. We look forward to rolling out 5G-enabled products and solutions and unlocking value to meet customers’ demands.
“As Malaysia’s convergence champion, we believe 5G will strengthen our convergence proposition, and our customers will be encouraged to transition to 5G in the near term.
“Ultimately, TM’s growth and differentiation, whether in 5G, fixed broadband or digitalisation, will hinge on creating and offering exceptional customer experience, as we continue on our evolution towards becoming a human-centred technology company.”
YOU MAY ALSO LIKE

TM GLOBAL EXPANDS DATA CENTRES IN CYBERJAYA AND JOHOR TO STRENGTHEN NATION’S DIGITAL TRANSFORMATION
KUALA LUMPUR, 11 NOVEMBER 2024 – TM Global, TM’s wholesale business arm, will expand its Klang Valley Data Centre (KVDC) in Cyberjaya and Iskandar Puteri Data Centre (IPDC) in Johor, addressing the growing demand for domestic and international data hosting services. This is the next phase in TM’s strategic roadmap to grow its infrastructure ecosystem and position Malaysia as a preferred digital hub in Southeast Asia, aligning with its aspiration to become a Digital Powerhouse by 2030. These expansions and TM’s partnership with Nxera to develop a new, hyperconnected, AI-ready data centre, lays the foundation for digital services such as cloud, advanced analytics, artificial intelligence, and the Internet of Things. Scheduled for commercial operations in 2025, the second phase of both KVDC and IPDC will deliver a combined IT load of about 20MW. The expansion will meet Uptime Institute’s Tier-III standards, and the Leadership in Energy and Environmental Design (LEED) Silver rating for long-term sustainability, a globally recognised green building certification. Khairul Liza Ibrahim, TM Global’s Executive Vice President, said, “KVDC and IPDC are integral infrastructures in Malaysia’s digital ecosystem, serving as international gateways and interconnected points to support 5G networks. This second phase of our data centre expansion will feature sustainable designs, boosting our capacity to support hyperscalers, OTT players, cloud and next generation AI providers, as well as enterprises.” TM Global’s data centres are complemented by seven regional Edge Facilities located throughout the country. These support high-performance computing and co-location services to bring content closer to end-users with minimal latency. “We have further enhanced our data hosting services with a recent acquisition of the Facilities-based Operator license in Singapore, allowing us to provide seamless, secure data centre-to-data centre connectivity through our extensive domestic fibre optics network and international submarine cable systems. This enables us to meet the growing connectivity demands across the region, linking data centres from Thailand to Malaysia, Singapore, and Batam in Indonesia,” Khairul Liza emphasised. TM Global offers a comprehensive suite of platform-based services, including Multi-Edge Computing and Content Delivery, to elevate data hosting solutions. These services are tailored to optimise performance and efficiency, ensuring a robust and reliable data-driven network for customers. Leveraging its extensive network infrastructure, TM Global equips carriers, enterprises, hyperscalers, OTTs, and next-generation AI application providers with the tools necessary to drive innovation and seamless digital integration.

ACES Awards 2022 recognises TM R&D as the innovative tech company of the year
In recognition of its transformative approach to software and technology that can lead to the creation of new approaches and prospects Telekom Research & Development Sdn Bhd (TM R&D), the innovation arm of Telekom Malaysia Berhad (TM), recently won the Innovative Tech Companies of the Year Award at the Asia Corporate Excellence and Sustainability Awards (ACES) 2022, organised by MORS Group. The award was conferred to TM R&D in recognition of its transformative approach to software and technology, demonstrating that its tech innovations can lead to the creation of new approaches and prospects. Dr Sharlene Thiagarajah, Chief Executive Officer, TM R&D accepted the award from Shanggari B., Chief Executive Officer of MORS Group and Luis Nieto, one of the juries for the ACES Awards 2022. “This is a proud moment for the TM R&D team. Winning this award illustrates that we are on the right track. The transformative approach in our work will help propel Malaysia to be a nation of producers, instead of consumers. Our ability to produce will lead to greater sustainability of our country,” Dr Sharlene expressed her gratitude on receiving the award. “Our achievements are shaped by the discipline, focus and determination we have instilled, and I would like to thank our team for their commitment towards excellence.” TM R&D is a world-class R&D company that helps businesses solve operational issues and co-create solutions for the global market. It focuses on intelligent platforms, IR4.0 technologies and connectivity to create smarter business ecosystems. The company strives to stay relevant with new innovative solutions that the market cannot do without and takes on projects that provide multifold benefits to organisations. Among its strengths is the local in-house talents that can make, create and innovate as well as provide thought leadership on infrastructure for the future. Acknowledging that nurturing talent is crucial to the business, TM R&D also offers emerging skills learning and development programmes such as Artificial Intelligence (AI), Machine Learning, Data Science & Analytics and Data Engineering for its employees. Because its products and solutions are developed in-house, TM R&D is able to customise its innovations based on customers’ needs, addressing their specific pain points and meeting their customers demand (B2B2C) – embracing the Group’s aspiration of becoming a human-centred TechCo. Every product and solution that is developed contains embedded security, analytics and AI hence expanding its functionalities and delivering maximum benefits to the users. TM R&D’s main aspiration is to create and deliver the next Unicorn for TM and ultimately for Malaysia. To support this, it holds fast to the three (3) pillars of its business, which are exploratory research, co-creation with industry, and commercialisation thus making life and business easier with smarter ecosystems to enrich humanity and bring progress to nations. The ACES awards is among the most prestigious accolades that recognise inspiring leaders and sustainability advocates cross-industry across Asia. The awards value services and achievements of businesses of any nature respected for their contributions to their communities and the world. For more info about ACES Awards, visit https://www.acesawards.com/.

TM Wholesale signs with globe to level up gaming and e-sports services in the Philippines
Partnership will enable Globe to leverage e-sports services utilising Swarmio’s plug and play Ember gaming platform for improved performance TM Wholesale, the wholesale arm of Telekom Malaysia Berhad (TM), has signed a collaborative agreement with Globe Telecom (Globe), for a nationwide rollout of Globe’s co-branded gaming solution called Globe Gamer Grounds powered by Ember in the Philippines. The partnership will provide Globe with access to Swarmio’s plug-and-play Ember gaming platform that will enhance Globe’s gaming and e-sports services and bring it closer to its millions of mobile and broadband end users. Leveraging TM’s established global network and infrastructure ecosystems, the platform enables Globe’s customers to enjoy ultra-low latency gaming experiences with faster download speeds. As the leading digital solutions provider in the Philippines, Globe operates nationwide fixed-line and broadband networks throughout the country, serving over 86 million mobile customers. Beyond providing telecommunications services, the Globe Group of companies also has a significant presence in various digital solutions businesses, leveraging its substantial customer base, distribution capabilities, and strategic partnerships to establish a footprint that spans numerous industry sectors including fintech, healthcare, entertainment, adtech, e-commerce, manpower, IT services, and venture capital. “We are thrilled to collaborate with Globe as the gaming and e-sports industry is now considered the world's biggest entertainment industry, with ASEAN gamers dominating the market. As a regional operator, TM Wholesale takes pride in making superior gaming experiences accessible to the industry via our wholesale offerings which provide a seamless and high-quality digital experience to users. This collaboration also aligns with our vision to create a more vibrant digital ecosystem throughout the region,” Amar Huzaimi Md Deris, Executive Vice President of TM Wholesale stated. Ralph Aligada, Head of Globe Games and Esports said, “With Globe's all-in-one gaming platform, the community of gamers will enjoy a seamless and high quality digital experience. We aim to excite all gamers regardless of age and skill level across the Philippines. We are hopeful that with this agreement, there will be more opportunities and innovative solutions that would benefit our gaming community and users in the country, perhaps even across the region.” Previously, TM Wholesale and Swarmio Media, a Canada-based gaming and e-sports technology company established a partnership to provide accessible and high-quality digital gaming and e-sports services throughout ASEAN. This partnership with Globe marks a breakthrough in TM’s collaboration with Swarmio Media, enhancing e-sports gaming and levelling up digital experiences for the Philippines and across the region.