26 May 2022
TM aspires towards a human-centred technology company in delivering digital Malaysia following successful 37th AGM
2021 a milestone first-year of the New TM Transformation
Telekom Malaysia Berhad ("TM" or "the Group") today successfully concluded its 37th Annual General Meeting, with all 13 Ordinary Resolutions and one Special Resolution tabled duly approved by its shareholders.
The Meeting was conducted online for a third consecutive year to allow maximum flexibility for engagement with shareholders. The event saw over 1,000 shareholders attending virtually.
Hosting the proceedings for the first time, Tan Sri Mohammed Azlan Hashim, Chairman of TM's Board of Directors said, "2021 has been a milestone first-year in our New TM Transformation, with the Group setting a solid foundation as a growth-oriented PLC investing for optimum long-term returns for its shareholders, while also continuing its nation-building efforts to realise a truly Digital Malaysia."
Alongside the Board of Directors, key senior leaders including Imri Mokhtar, Managing Director and Group Chief Executive Officer; and Razidan Ghazalli, Group Chief Financial Officer were also in attendance to offer insights into the 2021 Audited Financial Statements and the Group's moving forward business priorities.
"In 2022, we aim to continue growing our operating revenue by strengthening our core business momentum to improve profitability, enabling us to invest for future growth. Our first quarter of 2022 recorded steady revenue growth at RM2.89 billion, an increase of 2.9% from this same period last year, despite heightened competition. We also ramped up our transformation initiatives and delivered profit after tax and non-controlling interests (PATAMI) at RM339.9 million, or 4.4% higher. We will continue to optimise cost and improve productivity in our effort to raise EBIT to more than RM1.8 billion," Imri explained.
He added: "We are intensifying our efforts in the remaining seven months to deliver the next chapter of our Transformation. We will look at a total CAPEX spend between 14-18 per cent of revenue, with spending primarily focused on network expansion and modernisation together with enhancing customer experience."
unifi will continue to maintain its leadership in fixed broadband and enhance its Fixed-Mobile Convergence (FMC) proposition, 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 will continue 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 further serve other OTTs and hyperscalers with connectivity and data centres, moving towards establishing Malaysia as a digital hub for ASEAN via new submarine cables, enhanced data centre solutions, and edge computing.
TM One, as the sole home-based cloud service provider will also offer end-to-end managed services with robust connectivity and infrastructure. In addition to ensuring data sovereignty and security for the MyGovCloud initiative, TM One will be ramping up its data centres to support the nation's Cloud First agenda.
Recognising that the future is digital, TM has also invested in strengthening its digital services through Credence, a new arm that will focus on expanding the capabilities of enterprises in their digital transformation journey. Helmed by senior leaders from the technology sector, this new business will serve existing TM customers as an end-to-end Cloud and Services solution partner, offering services from tech infrastructure to business insights, IT landscape migration, SaaS, managed services as well as analytics.
While improving connectivity and digitisation solutions to enable a better Malaysia, the human factor remains the true centre of TM's growth agenda.
Imri concluded: "Our aspiration is to evolve towards becoming a human-centred technology company. From our beginnings as just a fixed telco, we are now a converged telco providing voice, internet and data through both fixed and mobile technology, which further delivers content, data centre and cloud services. The next step is to evolve from delivering converged connectivity into a human-centred technology company – delivering lifestyle and business solutions for our customers with innovative digital technology and applications.
"In a market where telcos and other digital players now have a play in almost every solution, customer experience will be the true differentiator in attracting and retaining customers."
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TM records steady performance in 1Q2022 with revenue & PATAMI up 2.9% & 4.4%; maintains focus on its growth strategies execution
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."
TM supports affected small businesses and communities through “Inisiatif Tolong Menolong”
Reaching out to more than 140 SME businesses and 14,000 families nationwide as part of the ongoing Malaysia Prihatin movement. Telekom Malaysia Berhad (TM) stays committed to its efforts in lending support and aid to affected Small and Medium Enterprise (SME) businesses and communities during this challenging period of COVID-19 pandemic. In view of the immense impact of this unprecedented period, Yayasan TM (YTM), TM's social impact-based foundation and also its Corporate Responsibility arm, embarked on a food bank programme called "Inisiatif Tolong Menolong", as part of the ongoing "Malaysia Prihatin" movement. The two (2) months programme is aimed at supporting local SME businesses such as grocery stores, sundry shops and restaurants as well as community groups in need including B40 families and the homeless, who are affected by the pandemic and enforcement of Movement Control Order (MCO). For this initiative, YTM works with TM's state offices nationwide to identify the local SMEs and provide the beneficiaries with basic necessities to alleviate their burden during this challenging time. Izlyn Ramli, Director of YTM shared: "We understand that the MCO is necessary to keep Malaysians safe during this pandemic, but it brought its own challenges to our livelihood. This is where YTM and TM Group continue to lend our helping hand wherever possible, embracing the spirit of "Malaysia Prihatin" and #kitajagakita. Apart from other ongoing initiatives to help the nation bounce back, we have embarked on this nationwide "Inisiatif Tolong Menolong" that adopts a two-pronged approach – providing basic necessities to those in need by purchasing the items from the local SME businesses in the vicinity. This will help the beneficiaries while at the same time assisting in the survival of the affected local SMEs. We hope this humble assistance can make life and business easier for them, and they have a chance to rebuild their lives together." "We are also very grateful for the great support and cooperation from the TM state offices and our various stakeholders on the ground who have worked tirelessly to make this initiative a success," Izlyn concluded. The initiative, kicked off on 20 August 2021 nationwide, is set to benefit more than 140 SME businesses, which were selected as collection points for the identified 14,000 families to get their basic food supplies in their respective areas. This programme is also part of the collective humanitarian efforts of the GLC/GLIC Disaster Response Network (GDRN), for which YTM is co-chair together with Khazanah Nasional Berhad's Yayasan Hasanah, under Ministry of Finance (MOF)-GDRN PERMAI Relief Fund 2021; a matching grant announced under Initiative 6 of Pakej Bantuan Perlindungan Ekonomi & Rakyat Malaysia (PERMAI) to provide immediate relief to those adversely impacted by the COVID-19 pandemic and natural disaster. Earlier this year, TM had disbursed RM1.5 million of the TM's MOF-GDRN PERMAI Relief Fund 2021 via 17 NGOs nationwide and benefited more than 10,000 families from various backgrounds. Also under this fund, working together with Persatuan OKU Sentral and GDRN partners, TM has recently contributed a month's supply of food for front-liners and volunteers working at a Drive-Through Vaccine Center (PPV) specifically for the special needs community, including their guardians and senior citizens in Johor Bahru. To date, the TM Group including YTM has extended close to RM20 million through various initiatives to ease the lives of affected communities, and in continuous support of Malaysia's nation-building and community welfare agenda in these challenging times. YTM joins all Malaysians in prayer for the safety and health of the nation, together may we return stronger.
As nation shows encouraging signs of recovery, TM posts strong results for first nine months of 2021 revenue up 6.8%, net profit increases 7.7%
Group Operating Revenue in Jan - Sept 2021 (YTD Sept) grew 6.8% to RM8.38 billion compared to the same period last year Continued focus in supporting the nation's sustainability and recovery has resulted in Telekom Malaysia Berhad (TM) posting a strong financial result in the first nine months of 2021. Fuelled by high demand for digital connectivity and solutions, TM continues its positive trajectory for the year with a solid performance in the third quarter (3Q2021). YTD Sept 2021 Financial Highlights (vs YTD Sept 2020) Solid revenue growth, with a 6.8% increase to RM8.38 billion, from RM7.84 billion in the same period last year. This achievement is driven by revenue increase from all lines of products, particularly Internet services which saw a 6.8% increase on the back of steady growth in fixed broadband customer base. Earnings Before Interest and Tax (EBIT) grew by 17.1% to RM1,414.8 million, from RM1,208.6 million as a result of revenue growth and continuous cost optimisation initiatives. PATAMI increased by 7.7% to RM815.3 million compared to RM756.7 million, following sound operating profits. Imri Mokhtar, Group Chief Executive Officer of TM commented: "Throughout 2021, we've focused our efforts to deliver digital connectivity and solutions in supporting the sustainability and recovery of our country. As a result, we are able to deliver another solid quarter of revenue and net profit growth. Our next focus will be on delivering enhanced customer experience and strengthening our digital offerings across all customer segments in unifi, TM ONE and TM WHOLESALE. With movement control restrictions in Malaysia continue to be eased and the economy gains momentum, we remain committed to serve the nation. We will continue to play our leading role in Malaysia's digitalisation drive outlined by the Jalinan Digital Negara (JENDELA) action plan, 2022 Budget and the 12th Malaysian Plan, including MyDIGITAL blueprint. As we continue our shift towards becoming a human-centred technology company, we will develop innovative solutions and drive digital adoption across our broad customer base of home, SME, corporate and Government customers – anchored on enhanced customer experience. Supporting this evolution, will be our new way of working at TM – focusing on increased productivity through digitalisation and process automation, upskilling of our existing workforce and welcoming new digital talents." Driving digital adoption and a new way of working in the post-pandemic era TM recorded the highest increase in unifi subscribers for three consecutive quarters. In the quarter under review, TM registered an additional 210,000 new unifi subscribers in both the consumer and micro, small and medium sized enterprise (MSMEs) segments. This record-breaking growth is fuelled by high demand for connectivity and digitalisation tools which have become an important necessity. To deliver this demand, TM has been adding higher number of broadband ports and delivering a wider fibre network coverage. This expansion has exceeded TM's committed targets in JENDELA action plan. The fast network rollout together with strong frontline support, a steady marketing push and speedy installation had cemented customer's confidence and trust. Beyond connectivity, unifi has steadily strengthened its entertainment proposition with the addition of 19 new content offerings comprising 7 content streaming services and 12 new channels. Supporting the Government's push to digitalise MSMEs, unifi registered encouraging increase of productivity and digital tools utilisation amongst its 375,000 MSME customers, leveraging the Government's Digitalisation Grant. Focusing on enhanced customer experience Customer experience remains our key focus across all segments and we continue to introduce new experience features and improvements in this area. For unifi customers, we continue to innovate and improve in the management of user experience. We now provide customers with a proactive early detection and intervention support for broadband connectivity and ensuring fast resolution of service. As a market leader, TM commits to a continued focus on customer experience, with progressive releases of more new experience leveraging on analytics. TM WHOLESALE was recently awarded the Best Asia Pacific Zero Outage Supplier by T-Systems amidst intense competition from other established telcos in the region. This recognition signifies TM's commitment and focus to provide the best quality service to our telco and hyperscaler customers. Enabling digital solutions in the Enterprise and Public sectors TM ONE remains steadfast in its commitment to realise the nation's MyDIGITAL blueprint and support efforts to rebuild the economy in both the Enterprise and Public sectors. New sales and contract renewal across the Enterprise and Public sectors are encouraging in the post pandemic recovery period with TM ONE providing digital connectivity and solutions for the Digital Community Centre in rural areas, regional cloud services and major financial institutions. TM ONE maintains its role as a trusted business partner driving digital transformation for Enterprise and Public sectors especially in business process automation via partnerships with global digitalisation partners such as SAP. Delivering network for the Industry TM WHOLESALE continues its "telco for telcos" role by providing wholesale services and solutions to all Malaysian licensed service providers. In line with the overall growth of broadband, TM WHOLESALE recorded high demand for its wholesale broadband service. As the primary mobile backhaul provider for the industry, TM WHOLESALE registered an increase in bandwidth utilisation of its Next Generation Backhaul service by major mobile telcos. This also positions TM as a capable enabler for Malaysia's 5G network deployment. Internationally, TM WHOLESALE continues to strengthen its partnership ecosystem with global telcos and hyperscalers, and has recorded significant growth of international bandwidth traffic. This is further complemented by the coverage increase of the global content delivery network (CDN) with more than 80 CDN nodes worldwide. TM WHOLESALE has also established a collaboration with a Tier 1 Internet Protocol (IP) transit provider – Tata Communications – to offer high-speed and reliable connectivity in the ASEAN region and open access to global enterprises. At the same time, we have successfully on boarded more than 15 major international hyperscalers and digital service providers in TM's core data centres. All of the above positions Malaysia positively as a digital and technology hub in ASEAN. A socially responsible Corporate Citizen TM played its part in supporting the fight against COVID-19 via various programmes. Overall, TM has contributed over RM9.5 million for humanitarian and community initiatives this year including to Tabung CERDIK and COVID-19 GLC/GLIC (GDRN) fund. TM also provided digital connectivity services to more than 400 PPVs nationwide, in addition to converting three of its premises into PPVs at its Multimedia University (MMU) campuses in Cyberjaya and Melaka, plus Kompleks TM Taiping. TM had also spent over RM16.0 million on several safety protocols and preventive measures across its customer operations to ensure the wellbeing of our frontliners and customers. These measures include providing personal protective equipment (PPE), weekly COVID-19 screening, UV air treatment and other workplace measures.
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