​3Q2022 Key Highlights (vs 3Q2021)

• Operating Revenue grew 12.7% to RM3.16 billion, from continuous growth across all customer segments
• EBIT grew 38.2% to RM604.8 million, from strong revenue growth and improved business cost efficiency         
• PATAMI decreased 2.2% at RM 265.2 million, following higher tax charges including Cukai Makmur, and foreign exchange translation loss on borrowings
• CAPEX investment at 19.1% of revenue or RM603.7 million, focused primarily on fibre service growth and network expansion, includes enabling 5G network rollout
• On the back of a solid first nine months, TM is revising upwards its market guidance on revenue and profit growth

Delivering another solid quarter in 2022, Telekom Malaysia Berhad (“TM” or “the Group”) continues to chart a steady growth trajectory with its third quarter ended 30 September 2022 as compared to the same period last year (YoY).

The Group’s operating revenue increased by 12.7% to RM3.16 billion, from RM2.80 billion in 3Q2021, the highest revenue recorded in the last ten quarters. TM’s focus on strengthening its core business and operational efficiency proved solid and resilient, capturing continued growth against the backdrop of intensifying competition.

Better business cost efficiency from prudent operational spending plus optimisation programmes contributed to a better Group’s Earnings Before Interest and Taxes (EBIT) reported at RM604.8 million, a 38.2% growth from RM437.5 million in 3Q last year.

Profit After Tax and Non-controlling Interest (PATAMI) stood at RM265.2 million, decreased 2.2% from RM 271.3 million recorded last year, as a result of higher taxation pay out and foreign exchange translation loss on borrowings.

Continuous investment for growth and improving the experience of customers has been a rallying point for TM. The Group invested CAPEX at 19.1% of revenue this quarter, amounting to RM603.7 million to meet customers’ demands through fibre expansion, network modernisation and technology upgrades.

Unifi sustains growth momentum

Unifi demonstrated a continuous growth trajectory and continues its leadership in fixed-mobile converged (FMC) solutions of fixed broadband, mobile services, digital content and solutions for both consumers and MSMEs, recording a revenue increase of 7.0% from RM1.31 billion to RM1.40 billion.

Driven by aggressive sales, promotions and loyalty programmes for customers, Unifi grew its fixed broadband subscriber base close to 3 million. With 5G now made available, Unifi will leverage this equal playing field to strengthen its position as the preferred provider for FMC, providing the widest and fastest all-in-one solution to meet today’s digital lifestyle.

Unifi has also expanded its digital content portfolio with more on-demand streaming apps, with Unifi TV on track to become the largest streaming platform in Malaysia by end of 2022, with more than 15 streaming apps onboard. Its most recent launches include MangoTV, one of China’s leading online video platforms and SIAR, a local channel featuring classic Malay movies.

With approximately 400,000 MSME customers, Unifi Business’ digital solutions and programmes aim to accelerate their digital transformation and business growth. On top of connectivity, Unifi Business also unveiled new business solutions to support MSMEs digitisation through cloud adoption, eCommerce Hub, cybersecurity and digital marketing, and were created to be affordable for this segment.
 

TM One turnaround continues

TM One, the Group’s enterprise and government sector arm, recorded a 11.9% growth in revenue from RM796.9 million to RM891.9 million in 3Q2022, clocking in a solid performance in the quarter.

Growth was from both enterprise and government sector segments driven by connectivity services and customer projects. TM One inked more collaborations with several organisations to enable their customers’ digitalisation and transformative plans.

TM One’s 5G Sphere comprising a technology ecosystem of more than 35 partners was recently launched to deliver 5G-enabled solutions for industry leaders to accelerate growth and create a more sustainable business operation. Its Private 5G solutions leveraging on dedicated and reliable Private 5G network will also propel enterprise adoption of IoT and IR 4.0 technologies, machine learning and analytics that will spur the nation’s economic growth.

TM Wholesale (TMW) supports the telco/technology growth in Malaysia & region

TM Wholesale (TMW) recorded a stellar performance in 3Q2022, with revenue increasing by 26.0% from RM610.9 million to RM769.9 million, making it the biggest revenue growth contributor for the Group in the current quarter. This is mainly attributable to higher domestic data and international digital demands from hyperscalers and global carriers within the region.

More than 5,400 cumulative 4G and 5G fibre backhaul sites were deployed to expand network coverage and accelerate digital implementation nationwide. TMW continues to support the industry’s demand for High-speed Broadband Access (HSBA), delivering a total of more than 670,000 ports for 5 local broadband providers.   

At the international front, TMW secured a North Asia digital provider and a US-based hyperscaler as its latest wholesale Data Centre customers in Iskandar Puteri Data Centre. TMW also became the preferred service provider for a US-based hyperscaler in providing a long-term International Data services, thus strengthening its position as Malaysia’s preferred network infrastructure provider and at the same time positioning our country as a digital hub within ASEAN.

Commentary and Outlook from Imri Mokhtar, TM Group Chief Executive Officer

“TM’s growth momentum is expected to continue for the rest of 2022 from our core business segments - Unifi, TM One and TM Wholesale. We shall continue to invest in our technology capabilities, new growth areas of FMC and digital solutions, and in building capacity and digital talents within TM; while staying focused on growing with our customers, as well as continuing our operations cost discipline.”

“Competition in FMC and the digital space is intensifying. We are strengthening our mobile business with the right strategy and capabilities to take TM into an era of true convergence. Unifi introduced exciting bundled packages for consumers and MSMEs, while TM One brings together leading technology and smart solution partners to accelerate innovative use cases. TMW continues to deliver on its aspiration to position Malaysia as the digital hub for ASEAN via submarine cables and date centre offerings.”

“2022 is indeed the year to build our commercial resiliency to face the anticipated headwinds in 2023 – easing of economic growth, high supply chain cost and more measured customer spending.”

“As we evolve from a converged Telco into a human-centred TechCo, we continue to focus on executing our transformation programmes which has produced tangible results for our customers and stakeholders.”

Telekom Malaysia Berhad (TM) through its foundation arm, Yayasan TM (YTM)  continues to support the nation's creative industry development by hosting IMMERSIO Festival in collaboration with Filamen at Muzium Telekom Kuala Lumpur. The festival is one of the unique large-scale Art & Technology experiential exhibitions to be staged in the city centering on New Media Art, NFT Crypto Art and Immersive Art, featuring more than 60 local digital artists and collectives from Kuala Lumpur, Selangor, Johor, Penang, Kelantan, Sabah and Sarawak.

IMMERSIO was established in 2017 with the objective to bring together new media artists from around Kuala Lumpur and the region to exhibit their work marrying arts and technology. After a 2-year hiatus due to the pandemic, the event is back for its fourth (4th) instalment. This month, the festival will occupy Muzium Telekom for the first time, throughout the 27,000 sqft venue in the heart of Kuala Lumpur with 12 immersive installations and 7 workshops as well as talks. Situated within the 94-years old heritage building, Muzium Telekom traces the history of telecommunications in Malaysia from the 1870s up to the present, and IMMERSIO with the theme Mengukir pays homage to the country's achievements in digital infrastructure.

Bringing together like-minded emerging and well-established artists, YTM aims to create more meaningful and accessible relationships between people, cultural heritage and the digital world through art and technology. Among the line-up is the Kuala Lumpur based artist, Jun Ong's kinetic installation "Beacon", an expression of the sensorial response to the extinction of nature. Visitors are also invited to take a walk around the room featuring "In Soul in the Fabric of Society", an installation of songket handwoven fabrics by a collective of women weavers from Sarawak known as Tanoti, as well as art installation using fiber optic materials by Cheong See Min, a weaver and textile artist based in Johor. Walking into the exhibition, the visitors will experience Network, an audio installation of telecommunication soundbites from the classic landline telephone to 5G radio waves specially curated by artist duo iwaz and Martian Backline. Conceived partly in response to the Covid-19 crisis, which has been a time of isolation for many, the installation reminds us to be grateful for advancement of technologies that we often take for granted.

YTM aims to transform this heritage museum into a vibrant and versatile public arts space that enable artists, collectors and art lovers to immerse themselves to experience these new art mediums in new exciting ways and at the same time provide a platform for inspiring talents including TM Group's own Multimedia University (MMU) students to showcase their creativity and innovation at Muzium Telekom. Holding on to the higher principle of ensuring that no one gets left behind in this digital age, YTM is also exhibiting the extraordinary artworks from WE&I and Nakseni gifted artists in the Virtual Reality (VR) Gallery. The festival will be also featuring the artwork by Rashwin Kalithas, a five-year old special needs young artist that will be receiving a recognition by The Malaysia Book of Records for the "Youngest Autistic Child to Hold Solo Digital Arts Exhibition" at this Media & Partner Night held at Muzium Telekom.

Commenting on IMMERSIO and the collaboration with Filamen, Director of Yayasan TM, Izlyn Ramli said, "As a purpose driven social impact based foundation, YTM is committed to the development of arts, creative ventures and culture. It is a necessary part of our nation's heritage preservation and celebration but also a key foundation to build our future. Creativity and innovation are not just confined to a certain sector, they are applicable across all fields of life as well as being key life skills as an individual. This must be nurtured and supported by all stakeholders for the betterment of society. Through IMMERSIO, YTM is also activating our digital talent incubator at Muzium Telekom that is part of our third pillar of Tourism, Culture and Heritage, alongside Education and Community and Nation-Building, connecting the dots between youth, talent and creativity to skills development, digital opportunities and collaborative partners."

"This year, YTM has launched The Muzium Telekom Transformation Plan to reactivate and placemake our heritage building as an engaging public space, with the aim of education, entertainment and monetisation opportunities for the communities we serve. One of our placemaking initiatives is "TEMU Weekends", a community-driven creative event that happens every Saturday and Sunday to engage and draw people to Muzium Telekom where they can socialise and hang out together with friends, family and the city. YTM will continue its ongoing mission with future-forward immersive museum exhibits and many more exciting and engaging community programmes" she added.

As the main organiser, Co-founder of Filamen, Abdul Shakir said, " IMMERSIO will become a major platform for local and international artists in art and technology. We hope this will nurture more young talents into the digital medium and new media arts. This platform is also meant to connect and engage different communities to make arts and technology more engaging and accessible. We look forward to build IMMERSIO up further to become one of the leading arts and technology festivals within the region and internationally. Thank you Yayasan TM for this opportunity to utilise and interact with this wonderful space at Muzium Telekom this year!"

The organiser would also like to thank all its partners, especially EPSON Malaysia, Martian Backline, Wonderland, HelioMedia, Experiential Design Team, InTransit, CahayaXR, Lokalocal, WE&I, Nakseni and event partners iNYALA, Kuala Lumpur Art Book Fair, Kuala Lumpur Illustration Fair and Klang River Festival for their invaluable efforts and commitment to make this the best experience for the visitors.

Also present today to officiate IMMERSIO's Media & Partner Night at Muzium Telekom was Datuk TPr Sulaiman Mohamed, Executive Director (Planning), Dewan Bandaraya Kuala Lumpur.

With a one-month curated programme ranging from talks, exhibits, audio-visual shows, and advanced digital art workshops, it is a chance for the public to be a part of the buzzing local digital arts scene, make new connections, and take home some very useful knowledge.

Come and explore IMMERSIO the exciting digital arts and innovations exhibition from 5th – 27th November 2022 (1030am-1030pm) at Muzium Telekom! Details are also available on the related digital and social media accounts of YTM and Filamen.

• Yayasan TM Facebook – www.facebook.com/yayasantm
• Yayasan TM Instagram – www.instagram.com/yayasantm
• Yayasan TM Linkedin – www.linkedin.com/company/yayasantm
• Filamen Facebook - www.facebook.com/wearefilamen
• Filamen Instagram - www.instagram.com/wearefilamen

Strengthening Unifi’s fixed-mobile convergence offering, TM aims to deliver seamless 5G transition and spur Malaysia’s 5G adoption and digital capabilities

​Telekom Malaysia Berhad (“TM” or “the Group”) is uniquely positioned to accelerate Malaysia’s 5G adoption, as the Group leverages its convergence leadership in delivering seamless fixed and mobile services to customers and businesses.

Following the signing of DNB’s Access Agreement on 30 October 2022, TM launched the first phase of its 5G services today, offering unlimited 5G data to existing Unifi Mobile Postpaid customers, as well as new Postpaid and Prepaid customers.

“DNB’s Access Agreement provides a level playing field for telcos to access the single 5G network equally, to deliver a wider range of innovative services,” said Imri Mokhtar, TM’s Group CEO.

“Leveraging this equal entry into 5G plus our current suite of connectivity and digital solutions, TM will be better placed to drive innovation and digital transformation at a national level, aligning with key digital programmes such as JENDELA and MyDigital to competitively position Malaysia as a technology hub.”  

“5G will reinforce TM’s leadership in fixed-mobile converged services for our consumer and MSME segments, strengthening our mobile capabilities to provide the widest and fastest all-in-one solution for fixed broadband, mobile service and digital content that meets today’s digital lifestyles and workstyles,” Imri added.

Acknowledging that one of the critical factors in 5G adoption is the willingness of customers to purchase new 5G-enabled devices, Unifi Mobile will also offer bundled 5G service-and-device plans, catering to a range of price points to ensure customer affordability from all backgrounds.

With 5G currently covering more than 33% of populated areas throughout Malaysia, this first phase is key to grow TM’s reach and presents the opportunity for a new push in Unifi’s convergence play, riding on its strength of 3 million households and close to 400,000 MSME customers. 5G will also strengthen Unifi’s proposition as a preferred digital partner for MSMEs, to provide complete one-stop services to accelerate their business growth.

Additionally, via TM One, its enterprise and Government sector arm, TM recently launched its 5G Sphere, a circle of leading technology and smart solution partners to form an ecosystem that will accelerate the co-creation of 5G innovative use-cases, taking enterprise 5G transformation from ideation to realisation. To date, there are 39 partners in this programme. TM’s nation-building efforts with the Government will also speed-up the availability of smart city, smart industry and 5G-enabled applications, creating a more sustainable and inclusive digital society and economy.

Simultaneously, TM continues to modernise the country’s fibre network architecture, integrating automation and virtualisation technologies to boost back-end infrastructures that will support the anticipated demand for 5G services and capabilities.

Ahead of this commercial launch, TM took strides to ramp up its 5G capabilities to grow its mobile and fixed-mobile convergence position, having recently appointed a seasoned industry leader, Jasmine Lee, as its Executive Vice President, Mobile and Chief Executive Officer of webe, as well as onboarding senior mobile talents to strengthen its innovation and competitiveness.

“As we transform to become a human-centred TechCo, TM’s 5G commitment goes beyond connectivity to enabling our interconnected society reshape the way we live and work. We recognise the value that this next-gen technology will bring to communities, businesses and the Government, and will continue to explore new ways to make 5G and digital progress accessible to all,” Imri concluded.

TM One’s annual flagship event LEAP Summit returns for a fifth year, anchoring on the theme ‘Enabling Your Next: Innovate and Transform’

TM One, the enterprise and government sector business solutions arm of Telekom Malaysia Berhad (TM), held its high-impact annual flagship event, LEAP Summit 2022 today, aimed at propelling enterprise innovation and transformation as Malaysian businesses take advantage of the nation’s initial economic recovery.

The fifth in its series, LEAP Summit 2022 themed ‘Enabling Your Next: Innovate & Transform’, brought together world-class digital experts and over 200 of Malaysia’s top decision makers to better understand how these leaders could unleash their innovation potential and take their businesses to the next level.

Imri Mokhtar, Group Chief Executive Officer of TM, in his welcoming address said that increased customer expectations for digital services and platforms are reshaping how enterprises work and conduct their business.

He also explained that in order to keep up with these new trends, enterprises must fast-track their transformation to virtualised cloud-based services, leverage digital networks to modernise legacy processes, accelerate workflow efficiency, and strengthen cybersecurity. This will improve business offerings and overall customer experience, leading to increased growth and profitability.

Kicking off LEAP Summit 2022 was Netflix’s Co-Founding Executive, Mitch Lowe, who emphasised the need for being brave in order to become a leader of the industry and to remain relevant. Having grown with the entertainment industry from video stores and DVD kiosks, to founding one of the most successful over the top (OTT) content services, Lowe shared that the habit of transformation is built by constantly looking to solve the problems faced by the customers and the industry.

Building on this need for organisations to constantly evolve, the event then featured a panel session with Paul Nicholls, Telstra Purple’s Digital Transformation Practice Leader with Telstra’s global partners Airspeeder (the F1 for Electric Flying Vehicle) and Bata Global (world's largest shoe manufacturer), which was moderated by Ching-Fong (CF) Ong, Managing Director & Senior Partner
from Boston Consulting Group; who deep dove into real examples of transformation, spanning multiple technologies and geographies, which centres around customers.

Bringing the conversation closer to home, industry leaders Datuk Hj Bacho Pilong, Senior Vice President, Project Delivery & Technology, PETRONAS; Fabian Bigar, Chief Executive Officer, MyDIGITAL; Effendy Shahul Hamid, Chief Executive Officer, CIMB Digital Assets; Ir. Dr. Lim Eu Shawn, Chief Global Solutions Officer, Aerodyne Group; also weighed in on transformation within the Malaysian context and its role in future-proofing businesses and the nation to progress from surviving to thriving. This discussion was moderated by Manoj Menon, Founder and Chief Executive Officer of twimbit.

Commenting about this year’s event, Shazurawati Abd Karim, Executive Vice President of TM One said, “TM One’s LEAP Summit is part of our continuous commitment to enable organisations to prepare for their next advantage, today and tomorrow. With one of the common challenges faced by organisations being how to start or even expand their innovation and transformation journey, we connect them to world-class leaders to open up new ideas and possibilities that enterprises can put into motion.”


TM One 5G Sphere Programme – enabling enterprises’ ‘Next’, now

LEAP Summit 2022 also witnessed the inauguration of TM One’s 5G Sphere Programme, an alliance of Malaysia’s leading technology and smart solution partners to create an ecosystem to support the next phase of enterprise innovation and transformation, leveraging 5G.

Harnessing 5G capabilities to power connected technologies to improve performance and customer experience, real-time detection, instant analysis and action for efficiency, as well as increased safety while reducing down-time through smart solutions, TM One’s 5G Sphere offers the opportunity for enterprises to springboard their transformation through actual case studies and proof of concepts that address their unique business challenges.


TM One 5G Solutions for enterprises and the government sector

TM One’s latest-in-class showcase during LEAP Summit 2022 also spotlighted 5G-enabled applications for Smart Healthcare, Smart Industry and Smart Cities, along with several digital solutions and services, demonstrating the latest end-to-end technologies available to enterprises and the public sector to spur on their digital growth.

Shazurawati explained, “The next phase of smart innovative transformation will be 5G-driven opportunities, with capabilities such as video monitoring, logistics, fleet management, and private 5G networks powering manufacturing, transport, factories, and campuses already on the horizon.”

“Moving forward, optimal 5G business solutions will arise from smart collaborations and coalitions among industry leaders, accelerating the next phase of technology adoption by both industry and the country as a whole, and enabling our aspirations for a Digital Malaysia,” she concluded.