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 R&D recognised at MDEC’s Inaugural Malaysia Digital Economy Industry Awards 2022
Acknowledgement for its support for the agency and contribution to the development of the digital ecosystem Telekom Research & Development Sdn Bhd (TM R&D), the innovation arm of Telekom Malaysia Berhad (TM) recently received the ‘Data Sharing Technology Excellence’ award in recognition of its contribution as a partner to the Malaysia Digital Economy Corporation (MDEC) in growing the data ecosystem in Malaysia. The recognition was given away at the inaugural Malaysia Digital Economy Industry Awards 2022 organised by MDEC, to show appreciation and recognise industry players who have been supporting the agency as well as contributing to the development of the digital ecosystem. Present to accept the award from Dato’ Seri Haji Mohammad Mentek, Secretary General of the Ministry of Communications and Multimedia, was Dr. Sharlene Thiagarajah, Chief Executive Officer of TM R&D. Commenting on the milestone achievement, Dr. Sharlene said, “This recognition reaffirms our efforts in developing digital ecosystems to facilitate Malaysians in embracing a more digital lifestyle. It is a proud moment for us at TM R&D and we look forward to continue working closely with MDEC and other agencies with similar aim, contributing our expertise to accelerate data technology adoption and facilitating talent development as well as industry-academic collaboration.” In 2020, TM R&D was appointed as MDEC’s Data Technology Partner under its Data Technology Partnership Programme. The appointment allows TM R&D to work hand-in-hand with MDEC and enterprises in multiple collaboration activities, leveraging on each other’s core expertise and capabilities to accelerate the adoption of data technology among businesses toward boosting Malaysia’s digital economy. TM R&D and MDEC also joined forces to launch a one-stop data exchange platform under MDEC’s #DigitalVsCovid initiative to facilitate and accelerate data sharing. The goal was to bolster research efforts in combating COVID-19. The development of the Data Exchange Platform was among the initiatives aimed at expediting access to data for developers, students, scientists and medical practitioners as well as government agencies. This will help them gather new insights easily on the pandemic and, eventually, pave the way for major breakthroughs. The Data Exchange Platform was built on TM R&D’s Open Innovation Platform (OIP), Malaysia’s first Open Software Development Platform. It consists of a data brokerage platform, an Application Programming Interface (API) store-front and an end-to-end (e2e) ecosystem for the rapid development of smarter 4th Industrial Revolution (IR4.0) services that enable the creation of new revenue opportunities. Established in 2001, TM R&D is the innovation arm of 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 pillars namely Intelligent Platforms, Data Brokerage, Connectivity/Tools and IR4.0/Digital Solutions. Growing from strength to strength, 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 developed in-house and cut across multiple industries such as Utilities, Retail, Agriculture, Healthcare and Education, with safety and productivity as its top priority.

TM wins again at Malaysia Technology Excellence Awards 2021 for its innovation, patrol
This is the fourth award received by TM at Malaysia Technology Excellence Awards in three years running Telekom Malaysia Berhad (TM) through its innovation arm, TM Research & Development (TM R&D) wins the AI – Telecommunications Award at the recent Malaysia Technology Excellence Awards 2021, presented by Singapore Business Review. The award was conferred in recognition of the Company's achievement in developing PATROL as a proof of function for research particularly on automatic detection of construction using vehicle dashcam and generate proactive alerts using artificial intelligence (AI) and machine learning algorithms. This is the fourth award received by TM R&D from the Malaysia Technology Excellence Awards in its three years of running. The awards ceremony lauds exceptional companies that have successfully pioneered IT products, solutions and innovative technology projects in their respective industries to boost Malaysia's fast-growing economy. Commenting on the accomplishment, Dr. Sharlene Thiagarajah, Chief Executive Officer, TM R&D said, "This is indeed a proud moment for us. Winning the award is a huge boost for our effort in showcasing how AI can be applied to solve real-life problems. It is also a huge encouragement for us to further strengthen our position as the leader in the research, development and innovation field. This award goes out to the team for delivering such outstanding work. We hope it will give them the drive to explore more innovations for TM to serve a more digital society, digital business, digital industry and digital Government, towards accelerating Digital Malaysia." Project PATROL was developed to provide early warning alerts on areas where TM infrastructure has a high risk of being destroyed due to civil and construction works by a third party. Ideally, before the civil or construction works were to begin, TM and other utility companies are to be consulted to ensure proper precautionary measures are taken to avoid telecommunication cable or other utility infrastructure cuts such as water or sewerage. The cable cuts will lead to loss of broadband and other telecommunication services which will cause major inconveniences to consumer lifestyle and businesses, as well as operation nightmare for any telcos. To fill in those gaps, PATROL was developed powered by digital and AI capabilities. PATROL leverages AI, object detection capabilities and the Internet of Things (IoT) to detect a construction area using a dashcam. The system then automatically checks if the unregistered civil and construction activity is in close proximity to underground or overhead cable infrastructure. Several parameters are used to assess risk before an alert is sent to the Network Operations Centre for investigation. "PATROL provides real-time alerts on civil and construction activities that pose a high risk to the security and safety of TM's cable infrastructure. This information allows telco providers to act fast in preventing possible threats to their assets. With PATROL, we foresee a huge opportunity for operational cost avoidance due to cable cut cases," she further added. 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. As TM R&D continues to expand beyond connectivity and into smarter digital ecosystems, its role in TM has become more prominent and exciting. 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.

TM One Smart City Summit 2022: accelerating the transformation of townships into smart cities through partnership with local authorities
Themed ‘Solutions Built for Citizens’, TM ONE City LEAP Summit is TM’s initiative to support the Ministry of Housing and Local Government's (KPKT) aspirations in strengthening the ‘Liveable Malaysia’ agenda TM ONE, the enterprise and public sector business solutions arm of Telekom Malaysia Berhad (TM) recently hosted the City LEAP Summit 2022, with the aim of boosting smart city execution by local city and municipal councils (PBT). The two-day event, held in Genting Highlands, was the second time the summit was organised, and was attended by a total of 60 participants from 26 PBTs nationwide. Held under the theme of ‘Solutions Built for Citizens’, the summit, which focuses on sustainability and improving the quality of life for citizens, constitutes one of TM ONE’s initiatives to take Malaysia’s Smart City transformation forward by supporting the Ministry of Housing and Local Government's (KPKT) aspirations for a “Liveable Malaysia”. Lined up were curated programmes, aimed at empowering collaboration amongst local authorities to adopt new global trends and accelerate the implementation of smart cities in their respective localities. This event builds on the first City LEAP Summit in 2020, held in Langkawi, prior to the COVID-19 Movement Control Order (MCO). The inaugural event, among others, featured demonstrations of 11 Smart Services use cases on the island managed live from the Integrated Operations Centre (IOC). The 2022 summit was attended by Kamaruzaman Umar, Deputy Secretary General of KPKT who represented YB Dato' Sri Reezal Merican Naina Merican, the Minister of Housing and Local Government, together with several key representatives from the ministry and government bodies including the State Secretary’s Offices (SUK) and State Economic Planning Units (UPEN) from various states. This year's City LEAP Summit provided insights into best practices as well as use cases of effective planning and execution of a smart city with talks by Bapak Setiaji, Chief of Digital Transformation Office, Ministry of Health, Republic of Indonesia who previously was the Head of Jakarta Smart City; and multi-award winning Smart Cities and IoT industry expert, Dr. Mazlan Abbas, who is also co-founder and CEO of FAVORIOT Sdn. Bhd. In addition, the event featured two comprehensive knowledge sharing sessions by Md Farabi Yussoff Md Yussoff, Head of Smart City Unit from PLANMalaysia (Federal Department of Town and Country Planning), and Mohamad Rejab Sulaiman, Vice President, Product & Innovation of TM ONE. They shared their expertise in the smart city standard benchmarks, integrated digital solutions and end-to-end technology for smart cities. In welcoming the delegates, Ir. Ts. Azizi A. Hadi, Chief Operating Officer of TM, said: “The development of a planned, integrated and holistic smart city is both timely and important. It helps to ensure that Malaysia is always in line with the current global urban development. Urban development extends beyond just making the city smarter; we must also ensure that the city leverages technology innovatively and creatively to provide a more liveable Malaysia.” He reiterated that with existing assets of the TM Group, including the widest broadband network infrastructure, submarine cables, telecommunication towers, cloud computing, data centres and cybersecurity, TM One is primed to provide world-class services and more effective solutions to local authorities. Besides that, with its services and solutions aligned with the objectives of the Malaysia Smart City Framework (MSCF), TM One is well positioned to assist PBTs in achieving most of the Smart City standard indicators (ISO 37122:2019). In his opening speech, Kamaruzaman said: “The success of a smart city lies in its implementation and requires coordinated efforts across three layers within the government; namely federal, state and local governments. Nevertheless, the participation of the private sector and industry players are equally important in the smart city ecosystem.” He also highlighted that public-private partnership is one of the most effective platforms to advance smart city implementation, and closer collaboration is needed between all relevant parties to accelerate smart city development in the country. Commenting on the summit, Shazurawati Abd Karim, Executive Vice President of TM One said: “Through this event, we aspire to produce a clear human-centred technology Smart City action plan that can be implemented and driven together between PBTs and TM One this year and beyond. We are passionate and ready to co-create a more comprehensive suite of smart city solutions, providing the best services to the people, supporting the business community while achieving environmental sustainability.” Other highlights of the City LEAP Summit 2022 include: TM One Smart City Solutions showcase throughout the summit including Smart Parking (SPARKS), Smart Street Light System (SLIMS), Smart Surveillance, Smart Water Management, Smart City Dashboard, Fleet Management System (FMS), and many more. The delegates also experienced these end-to-end smart city management and professional services through a mobile app, created specifically for this year’s programme. The Smart City Clinic, where subject matter experts and technologists from TM One had one-to-one sessions with the local authorities to delve into digital transformation action plans and solutions best suited to the needs of their city and community. During the opening ceremony, Kamaruzaman and all delegates also witnessed the signing ceremony of a Memorandum of Understanding (MoU) between Majlis Bandaraya Ipoh (MBI) and TM One for three services - Smart Traffic Analytics & Recognition System (STARS), Mobile Field Workforce (FORCE) and Business Process Outsourcing (BPO). In addition to executing the solutions, TM One will also provide professional and managed services to reduce the challenges encountered by MBI. For more details on TM One’s Smart City solutions, visit https://www.tmone.com.my/solutions/smart-services/smart-city/