03 Mar 2023
TM DELIVERS LANDMARK 2022 PERFORMANCE (FY2022) Revenue up 5.1% at RM12.12 billion; EBIT up 22.2% at RM2.09 billion; PATAMI up 27.7% at RM1.14 billion
FY2022 Key Highlights (vs FY2021)
· Operating Revenue grew 5.1% from RM11.53 billion to RM12.12 billion, with growth across all customer segments and product lines
· EBIT grew 22.2% from RM1.71 billion to RM2.09 billion, driven by strong revenue growth and improved cost efficiency
· PATAMI grew 27.7% from RM0.90 billion to RM1.14 billion, contributed by lower financing cost
· CAPEX investment at 20.0% of revenue or RM2.43 billion, highest in 5 years primarily on growth in fibre service and network expansion
· Final interim dividend at 7.5 sen per share declared amounting to RM286.6 million, with total dividend of 16.5 sen per share amounting to RM627.5 million for 2022
· ESG rating upgraded, FTSE Russell rated 3.6 from 3.1 in 2021; CDP rated ‘B’ from ‘C’ in 2021. Both above industry average
· FY2022 overall performance showed strong results with good trajectory and operational excellence across all lines of business
The financial year 2022 (FY2022) performance, ended 31 December 2022, represents Telekom Malaysia Berhad’s (TM) progress of its 3-year transformation programme (2021-2023). Moving into the final year of this transformation phase, TM remains committed to its focus in delivering value to its stakeholders.
Operating revenue grew by 5.1% to RM12.12 billion, from RM11.53 billion in 2021, fuelled by demand in connectivity, solutions and infrastructure. TM continued to strengthen its core businesses across Unifi, TM One and TM Global amidst intensified competition in the market.
Through revenue growth and improved cost efficiency, TM’s Earnings Before Interest and Tax (EBIT) grew by 22.2% to RM2.09 billion, from RM1.71 billion last year.
Profit After Tax and Minority Interest (PATAMI) rose to RM1.14 billion from RM0.90 billion, up 27.7% through higher operating profit and lower financing cost.
Capital Expenditure (CAPEX) stood at 20.0% of overall revenue, amounting to RM2.43 billion invested to deliver growth in fibre services, network modernisation and upgrades.
Unifi’s continuous growth momentum
Unifi continues its leadership in converged solutions of fixed broadband, mobile services, digital content and solutions for both consumers and MSMEs, recording a revenue growth of 7.5% from RM5.22 billion to RM5.61 billion contributed by increased number of home and MSME customers.
Unifi fixed broadband customers grew by 9.3% and exceeded the 3 million mark in 2022. To celebrate this milestone, customers were rewarded with free viewing of all 72 Unifi TV channels for one month, as well as pay-per-view movie discounts in appreciation for their trust and loyalty.
Unifi launched its 5G services in November 2022, offering Uni5G plans to Unifi Mobile postpaid and prepaid customers. 5G will reinforce TM’s converged leadership to provide the widest and fastest all-in-one solution for fixed broadband, mobile service and digital content.
Unifi Business’ digital solutions continue to boost and support MSME’s digitalisation needs from cloud storage, eCommerce hub, cybersecurity and digital marketing, serving critical needs from connectivity to digital solutions, accelerating their business growth.
TM One drives enterprise-grade innovative solutions
TM One reported a 0.5% growth in revenue from RM3.32 billion to RM3.34 billion in 2022, after several years of revenue decline amidst changing market dynamics and competitive landscape. This is attributed to higher recurring revenue and bespoke solutions deployment, as a trusted technology partner for large enterprises and the Government.
Utilisation of data centre space and power have also increased in 2022. The twin-core data centre of KVDC and IPDC have obtained Green Electricity Tariff (GET) from TNB as well as Green Building Index (GBI) and Leadership in Energy Environmental Design (LEED) certifications.
To strengthen its partner ecosystem, TM One launched ‘5G Sphere’ in October 2022 and today counts on over 70 leading technology and smart solution partners to accelerate the co-creation of 5G use-cases. On the other hand, Credence is advancing enterprise’s ‘cloud-first strategy’ as well as developing technologically-skilled professionals to accelerate cloud adoption in Malaysia.
TM Global positions Malaysia forward as a digital hub in the region
TM Global (rebranded from TM Wholesale) delivered a strong performance which made a significant contribution to the overall 2022 performance. TM Global’s revenue grew 7.8% from RM2.58 billion to RM2.78 billion, on the back of higher domestic data and international digital demand.
Domestically, TM Global is the preferred partner for High-Speed Broadband Access (HSBA) with the highest new installation in 4Q 2022. Advancing the country’s 5G rollout, almost 4,000 fiberisation sites were completed for the year.
Internationally, TM Global closed deals from US-based hyperscalers and Asia-Pacific carriers for its wholesale data centre solutions and international data services, elevating Malaysia as a trusted digital hub for the ASEAN region.
Commentary and Outlook from Dato’ Imri Mokhtar, TM Group Chief Executive Officer
“2022 was a milestone year for TM, tracking well in our transformation with growth across our business segments – Unifi, TM One and TM Global, and cost efficiency improvement. The stronger financial position places TM in a position to deliver better value and benefits for our stakeholders – customers, shareholders, partner ecosystem and community.
“TM is committed to continuously invest in shaping a Digital Malaysia through technology that empowers communities, businesses and Government – not just in our core business, but also in new, adjacent growth areas such as cloud, data centre, cybersecurity and platform-services.
“Sustainability will also be a domain we strive to make continuous progress. We have seen improvements in TM’s ESG ratings, for example the FTSE Russell ESG score rising from 3.1 to 3.6 in 2022 and also the CDP rating upgrade to ‘B’ from ‘C’ last year, both above the industry average. On governance, TM upholds transparency, disclosure and zero-tolerance to all forms of corruption, receiving the Gold Category in the recent Integrity, Governance and Anti-Corruption Award (AIGA) 2022.
“As part of TM’s next transformation to become a human-centred TechCo, we announced a reorganisation in December 2022 to streamline our core businesses and subsidiaries under a new entity named TM Technology Services Sdn Bhd (TM Tech). TM Tech is set to become the main operating entity of the Group with effect from 1 March 2023. This new corporate structure will be the catalyst for the next phase of TM’s transformation to reinforce its fixed-mobile convergence leadership, further improve operational efficiencies and deliver a more seamless customer experience.
“On the back of our current business momentum, there are new opportunities in the adjacent growth areas but also industry headwinds in terms of regulatory policy and higher technology costs. We are continuously assessing the impact of industry developments and will work closely with key stakeholders towards providing technology that is accessible to all in this digital era.”
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TM ONE AND KPJ HEALTHCARE COLLABORATE TO DRIVE SECURE SD-WAN DIGITAL CONNECTIVITY TRANSFORMATION FOR KPJ HOSPITALS NATIONWIDE
KUALA LUMPUR, 4 DECEMBER 2024 – TM One, TM’s enterprise and government sector solutions arm, and KPJ Healthcare, Malaysia’s leading private healthcare provider, have forged a strategic collaboration to drive digital connectivity transformation across KPJ’s healthcare facilities nationwide. The partnership will focus on enhancing KPJNET through advanced Software-Defined Wide Area Network (SD-WAN) Internet Services, bolstering network performance, scalability and security. The agreement was formalised between Shahril Mizani Ariffin, KPJ Healthcare’s Chief Digital Officer, and Mohamed Faisal Naina, TM One’s Vice President for Government Business. The exchange ceremony was also witnessed by Michael Leddin, KPJ Healthcare’s Chief Strategy Officer, and Shazurawati Abd Karim, TM One’s Executive Vice President. Shazurawati said, "TM One’s partnership with KPJ Healthcare reflects our commitment to enabling better healthcare services through digitalisation. By providing high-performance SD-WAN connectivity, we are supporting KPJ to deliver better patient outcomes and optimise operational efficiency. This will lay the foundation for a smarter, more connected healthcare ecosystem not only within KPJ but throughout Malaysia, for a greater benefit to our nation in the future.” Chin Keat Chyuan, President and Managing Director of KPJ Healthcare, added, “Our partnership with TM One underscores KPJ's commitment to staying at the forefront of technological advancements and to stay competitive in today’s fast-evolving digital healthcare landscape. With the adoption of SD-WAN, we will significantly enhance our infrastructure, providing better service to our customers and empowering our teams with secure and efficient connectivity.” This partnership aligns with KPJ’s core C.A.R.E shared values (Compassion, Accountability, Respect, Excellence), directly enhancing its ability to deliver high-quality, patient-centred care through a secure and reliable digital infrastructure. Secure SD-WAN services will enable KPJ to adopt other innovative solutions such as telemedicine, digital health platforms and AI-driven diagnostics. By modernising its ICT infrastructure, KPJ will improve operational efficiency, enhance patient care and create a more connected healthcare ecosystem. This collaboration reflects TM and TM One’s commitment to enabling Malaysia’s digital transformation and lead industry growth through digitalisation and sustainability, aligning with its Digital Powerhouse 2030 aspirations.
TM shines the spotlight on an unsung hero this Hari Kebangsaan through interactive 360º wayang kulit performance
Most of us are familiar with the many great gentlemen heroes who fought for the nation’s Independence, such as Tunku Abdul Rahman and Dato' Onn Jaafar. This year, however, Telekom Malaysia Berhad (TM) is shining the spotlight on one of the women “Tokoh Kemerdekaan”, Tan Sri Hajah Zainon Binti Sulaiman, also known as Ibu Zain, who played a pivotal role in inspiring Malaysians to unite and stand up as one. Her inspiring yet lesser-known story was captured in a Hari Kebangsaan and Hari Malaysia film titled “Ibu, Kisah Seorang Tokoh Kemerdekaan”, to celebrate the spirit of Malaysia’s independence and as an example of strength through unity. Aptly and equally inspiring too is that the film is narrated by her own daughter, Fadzilah Amin (Tok Lah), one of the most respected lecturers and educators in the country. The film is part of TM‘s Mengukir Malaysia initiative to celebrate and preserve our local culture through innovative technologies that enhances and elevates its delivery and enables Malaysians of all ages to better appreciate the richness of Malaysia’s heritage. Aimed at reconnecting people with the nation’s history and preserving the country’s rich heritage, TM brought to life the art of Wayang Kulit (shadow play), one of the earliest forms of animation in Southeast Asia, to tell the story of Ibu Zain. The project was born from one premise: ‘What if we could shine a light on a forgotten Malaysia hero through an art form that is also fading?’ Shanti Jusnita Johari, Chief Marketing Officer, TM, said, “Through our Mengukir Malaysia initiative, we aspire to leverage technologies that not only changes the way we live, work and play, but also enhances our perspectives and ideas, drawing from our local culture and history to remind us about what’s made us a great nation. “This Hari Kebangsaan and Hari Malaysia, we wanted to remember and celebrate Malaysia’s many unsung heroes, such as Ibu Zain, who made our country great. We hope that through this short film, people will be encouraged to learn more about this historical icon as we commemorate her legacy via Wayang Kulit, one of the first forms of storytelling by our ancestors which we must also preserve.” In ensuring that the film stays true to the ancient art of Wayang Kulit, TM found the perfect partner in Tintoy Chuo and his Tok Dalang from Fusion Wayang Kulit, who are renowned for their unique take on the art of Wayang Kulit. Their efforts to bring Wayang Kulit into the digital 21st century has garnered international attention, putting Malaysian Wayang Kulit on the world map. For this collaboration, TM and Tintoy Chuo weaved in virtual reality technology, bringing the Wayang Kulit experience to school children from across the nation’s 13 States. Sharing Ibu Zain’s story in a way that harmonised both heritage and digitalisation was one of the messages TM aimed to highlight about Malaysia’s unique make up and to celebrate both its history and aspirations during this Hari Kebangsaan. On top of the Hari Kebangsaan film, audiences can also visit www.tm.com.my/mengukirmalaysia to immerse themselves into the world of Wayang Kulit, Ibu Zain and TM‘s Mengukir Malaysia initiative through videos, a 360º interactive Wayang Kulit experience, behind the scene content and many more. Fans of Wayang Kulit can also visit TM‘s social media pages to use the Wayang Kulit filters and be part of the show.
YTM and Istana Negara equips higher risk communities with disaster preparedness
Facilitates the development of localised Emergency Response Plans Over the years, Yayasan TM (YTM) has been actively involved in disaster emergency response efforts and lent its helping hand to affected communities in various ways. With many tragic losses of life and property due to natural disasters, it is imperative to help the public better understand the importance of preparedness, the risks involved and build capacities for pre-emptive and early action, including identifying vulnerabilities and potential impact on people and assets. Through its latest initiative, the YTM-Istana Negara Community Based Disaster Risk Reduction and Management Programme (CBDRRM), organised in collaboration with Istana Negara, the programme is aimed at empowering communities especially women and children as well as building community resilience during disasters with the necessary knowledge and skills in disaster preparedness - in alignment to the Government's aspiration to nurture a disaster preparedness culture among Malaysians. For the inaugural edition of the programme, YTM identified three (3) high risk areas in Kuantan, Maran and Bentong districts in Pahang. This is also a continuation from the support to the local communities post-flood early this year where YTM, together with Istana Negara provided basic necessities, workforce and monetary assistance to citizens in Karak, Ulu Tembeling and Kuantan districts. “This CBDRRM programme is both important and timely, in view of frequent heavy rain and storms of late. We hope that the local communities will fully utilise the skills and knowledge obtained from the initiative, to be better prepared for in the event of any flood incidents in their respective areas, minimising the impact and ultimately, saving lives,” said Izlyn Ramli, Director of YTM. “We were delighted to find that these modules were very helpful for them based on their feedback. Meanwhile, we remain on the ready to deploy response and humanitarian aid should the need arise,” she added. The first one was held in August 2022 for the community in Perumahan Awam Kos Rendah (PAKR) Sungai Pandan, Kuantan, which saw a total of 120 participants attending, while the second was held in Maran in September. With the support of the National Disaster Management Agency (NADMA) as well as the TM Reaching Out Volunteers (TMROVers), the programme was conducted by 12 humanitarian experts with vast disaster response experience, including risk and reduction management from Red A Humanitarian Global. The modules highlighted the importance of disaster preparedness, hands-on session to develop localised Emergency Response Plans, water safety and practical swimming, as well as simulation exercises. The participants were also briefed on mental health management and creating children-friendly spaces (CFS) as an added element. For any emergency response plan to work, active participation from the community becomes crucial. During the programme, the communities were also connected to their local government agencies such as the Malaysian Fire and Rescue Department (BOMBA), Royal Malaysia Police (PDRM), Malaysia Civil Defence Force (APM), Jabatan Pengairan & Saliran (JPS) Negeri Pahang for better disaster response in the future. The third and final session was organised recently in Bentong in collaboration with Istana Negara and attended by 125 participants. Via the three (3) series of CBDRRM in Pahang, YTM have reached a total of 458 community members and local government agencies; inclusively, empowering 123 female participants and 167 children and teenagers. This initiative is aligned with our aspiration to build capacity in disaster preparedness among community members, especially women and children, who are considered first responders’ priority when a disaster occurs. YTM will continuously support the community for better disaster preparedness and response through community leadership and self-empowerment.
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