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 Wins Asia Best Employer Brand Awards 2023
KUALA LUMPUR, 3 October 2023 – TM is proud to have received the Best Employer Brand Award at the prestigious Asia Best Employer Brand Awards held in Singapore recently. The award acknowledges TM’s commitment to nurturing employee growth, continuous learning, and fostering a high-performance culture. Commenting on the award, Sarinah Abu Bakar, Chief Human Capital Officer, TM said, “Our TM employees are the driving force behind our success. The recognition at Asia Best Employer Brand Awards 2023 reaffirms our dedication to the growth and well-being of every Warga TM. People are at the core of our business strategy. This investment in our workforce is not solely targeted at their personal and professional development, but also aims to instil the right competencies that underpin our business performance. The award reflects our relentless pursuit of excellence and transformation towards becoming a TechCo, not only in Malaysia but also throughout the region.” “On behalf of TM’s management team, I would like to extend our heartfelt gratitude to all Warga TM, whose dedication and hard work have made this achievement possible. Our unwavering commitment to becoming the best and an exceptional employer continues as we aspire to grow and succeed together,” Sarinah concluded. Nurturing employee personal development and growth is an essential aspect of TM’s efforts that highlights HR’s pivotal role in shaping positive business outcomes. Over the years, TM has introduced a culture that values high performance, continuous learning and digitalisation, aligning with the Agile work approach to empower teams for greater flexibility and productivity. As TM steers towards the next level of growth, it remains committed to investing in future skills to further enhance the Company’s business performance. The Asia Best Employer Brand Awards 2023, hosted by the Employer Branding Institute and World HRD Congress, honour organisations for their exceptional contributions in talent management, development, and innovation. Award recipients were chosen by a panel of jury members following a comprehensive evaluation and assessment of their performance over the past 24-months.
TM accelerates digital adoption amongst Pekan Rabu entrepreneurs
More than 300 local entrepreneurs at Pekan Rabu are set to move to the next level in digitalisation with the availability of 800Mbps unifi connectivity through collaboration with Koperasi Pekan Rabu. Telekom Malaysia Berhad (TM) continues to expand its unifi broadband connectivity to the Pekan Rabu entrepreneur community towards increasing digital adoption amongst them through a collaboration with Koperasi Pekan Rabu at Kompleks Pekan Rabu, Alor Setar, Kedah. The programme was launched by YB Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz, Minister of Finance in a ceremony compliant with the Standard Operating Procedure (SOP). Also present were Dato' Asri Hamidon, Secretary-General of Treasury; Dato' Paduka Ammar Dato' Shaikh Mahmood Naim, State Secretary of Kedah; Imri Mokhtar, Group Chief Executive Officer, TM; Romani Wan Salin, Information, Communications and Multimedia, Domestic Trade and Consumer Affairs Committee Chairman and Azhar Abdul Rahman, State Director, Malaysian Communications and Multimedia Commission (MCMC). Commenting on the programme, Imri said: "The pandemic has changed our lifestyle and accelerated digital adoption among the communities and businesses. We are excited to join hands with Kedah State Government and Koperasi Pekan Rabu to provide one (1) year free high speed WiFi connection of 800Mbps at Pekan Rabu. We hope this can boost the digital journey of business communities there and enable the entrepreneurs to further enhance their businesses with digital solutions. We will also upskill the Pekan Rabu entrepreneurs with training sessions on digital applications such as our cari@unifi digital marketing platform and Instaweb for website building." "As the national connectivity and digital infrastructure provider, we remain committed to our unique role in supporting the Government's nation-building initiatives such as MyDIGITAL – Malaysia Digital Economy blueprint towards establishing a digital economy and empowering Digital Malaysia," he added. With the availability of the high speed connectivity, Pekan Rabu business operators are set to move to the next level with digital enhancement while maintaining its authenticity as an iconic, must go location in Kedah for its traditional, aesthetic and locally-produced products.
TM ONE NAMED FROST & SULLIVAN MALAYSIAN CYBERSECURTY SERVICES COMPANY OF THE YEAR
TM One, the enterprise and government sector solutions arm of Telekom Malaysia Berhad (“TM”), was named the Frost & Sullivan Malaysian Cybersecurity Services Company of the Year for 2022. The award was decided based on a series of detailed evaluations following Frost & Sullivan’s best practices criteria, in which TM One excelled as a service partner in addressing Malaysia’s enterprise and government sector cybersecurity needs. “TM One is recognised based on its extensive cybersecurity capabilities and resources. With a full suite of cybersecurity services and infrastructure, coupled with a deep understanding of the Malaysian market landscape, TM One continuously upholds a strong reputation of effectively addressing its customers’ security needs,” said Anh Tien Vu, Industry Principal, Global Cybersecurity Research Team at Frost & Sullivan. Shazurawati Abd Karim, Executive Vice President, TM One, said: “We are honoured to receive the Frost & Sullivan Malaysian Cybersecurity Services Company of the Year Award. With cybersecurity emerging as a top priority for organisations in their transformation journey, we are committed to growing our end-to-end solutions so that we can provide our customers digital freedom and peace of mind as they expand their businesses in the digital space. Understanding their unique business needs, we work with organisations to assess their cybersecurity capabilities and provide advisory services through our dedicated TM One Cyber Defense Centre (CYDEC) – helping them make the right choices to respond to cyber threats more effectively.” Addressing Cybersecurity Gaps among Enterprises and Public Sector More Malaysian organisations are now investing heavily in cybersecurity. As they become increasingly present and vulnerable in the digital space, organisations need to adopt a stronger security posture in their information technology, operational technology, and cloud infrastructure capabilities. Shazurawati said, “One of the key challenges for organisations is the shortage of in-house security expertise, professionals, and tools, requiring them to outsource their security operations. By working closely with customers to assess their security posture, technology maturity, and business needs, TM One offers customised solutions for managed security services, consultation and advisory, and other value-added services to help them navigate today’s complex technological landscape.” TM One is also strengthening the public sector’s cybersecurity, working alongside the Malaysian Government to enhance digital connectivity and smart innovations for cities and industries to propel the nation towards becoming a digital economy. In addition to connectivity, TM One continues to invest in local data centres, digital infrastructure and services, ensuring data sovereignty remains within Malaysian borders while bringing global best practices to the nation’s public sector. Its investments to strengthen Malaysia’s Critical National Information Infrastructure (CNII) is one of its efforts to protect government and public data, with its cybersecurity solutions developed in compliance with Bank Negara Malaysia’s Risk Management in Technology (RMiT) policy and the Personal Data Protection Act 2010 (PDPA). Anh Tien Vu said, “One consideration that stood out for Frost and Sullivan was that TM One has earned endorsements and collaborations from local cyber authorities, such as Cybersecurity Malaysia and the National Cyber Security Agency (NACSA) of Malaysia through its implementation of best practices, and world-class infrastructure backed by experts. Frost & Sullivan commends TM One’s steadfast efforts in providing cybersecurity services that exemplify this implementation of best practices, which have benefited customers and communities tremendously.” “On top of developing our own end-to-end solutions, TM One continues to strengthen its partnership ecosystem, collaborating with companies from various security domains to diversify its offerings and coverage. This includes FNS Value Co. Limited, the sole distributor of its Blockchain Secure Authentication solution in Malaysia, which helps secure digital transactions and online credentials, and Telefónica Tech – a global leader in cybersecurity, Cloud and IoT, as a partner in delivering Digital Risk Protection,” explained Shazurawati. “Our efforts to expand our cybersecurity services and to provide customers with cutting-edge security reflect our commitment to tackling today’s growing cybersecurity concerns. With next-gen technologies such as 5G opening up both new opportunities and threats, TM One is poised as the enabler for organisations’ next advantage and security, today and tomorrow,” she concluded.
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