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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MDEC and TM work together to deliver greater reach and impact to Malaysians in the digital economy
Both parties are collaborating on four (4) key areas of Digitally Empowered Businesses; Rural Digital Economy; Digitally Skilled Malaysians; and Digital Advocacy and Community Engagement. Telekom Malaysia Berhad (TM) and Malaysia Digital Economy Corporation (MDEC) today announced a collaboration in the joint effort to further strengthen the digital readiness of Malaysia, towards realising its Digital Nation aspirations. The collaboration encompasses four (4) key areas namely, to digitally empower Micro, Small and Medium Enterprises (MSMEs); to bolster rural digital economy; to empower Malaysians with digital skills; and to leverage on each other's strengths in running digital advocacy and community engagement programmes. More significantly, it brings the two national organisations, MDEC and TM, together moving in tandem towards delivering greater digital reach and economic impact for the shared prosperity of all Malaysians. Under the MoU, TM and MDEC will work together in matching, introducing and connecting TM with MDEC's MSME ecosystem and established partners such as Perkhidmatan eDagang Setempat (PeDAS) programme, Pusat Internet Desa (PID) and Digital Xceleration (DX), as well as TM's MSME customers to offer products and solutions in TM's identified technology pillars towards further empowering the SME fraternity. This will pave the way towards producing business and technology savvy entrepreneurs, MSMEs who will then drive economic growth. Towards empowering the rural digital economy, both organisations will explore the initiatives to further expand connectivity infrastructure that in turn, can help enable mentoring and coaching to communities on how to increase the utilisation of emerging technology to improve business operations. Both parties will also look into organising training and workshops to enhance the digital skills and competencies of identified communities as well as TM employees, while at the same time building competent graduates to increase their employability. This includes promoting the awareness on 4th Industrial Revolution (IR4.0) related skills to teachers, students and youth to equip them for the digital era. Commenting on the collaboration, Tan Sri Dato' Seri Mohd Bakke Salleh, Chairman of TM said: "We are excited and thrilled to join hands with MDEC in this milestone effort. Both national organisations will explore common ground and embark on the best initiatives towards establishing a solid foundation for the country's Digital Economy and to elevate Malaysia into a Digital Nation. This is also in line with TM's aspirations and unique role as the enabler of Digital Malaysia." "What TM will bring to the table are our comprehensive infrastructure as well as our capabilities to reach out to not only our wide customer base but to more Malaysians nationwide, through our various touchpoints and engagement platforms. As we continue to engage with the communities to increase their awareness on digital solutions and how it can help fulfill their needs; we are also working to provide the future digital workforce with the right skills for a digital business ecosystem. As the national connectivity and digital infrastructure provider, we have always and will continue to support the Government's aspirations in increasing connectivity reach to all," he added. "MDEC's collaboration with TM will complement the 'Malaysia 5.0' as the new narrative for introducing emerging technologies that will focus on accelerating the growth of Malaysia's digital economy in three primary areas: empowering Malaysians with digital skills, enabling digitally-powered businesses, and driving digital investments. Predominantly, the MDEC-TM joint effort is crucial to the new 'Malaysia 5.0' digital economy which will enable greater access and connectivity that will allow the nation to realise the full potential that the Fourth Industrial Revolution (4IR) holds for the economy. This goes to show that we are determined to surge the digital economy agenda for the many and to firmly establish Malaysia as the heart of digital ASEAN," said Datuk Wira Dr. Hj. Rais Hussin Mohamed Ariff, Chairman of MDEC. In addition, the collaboration will look at potential community engagements via digital platforms for the knowledge sharing of products and solutions from both parties to address the communities' needs. With this MoU in place, MDEC and TM will leverage on each other's strengths and complement areas where each entity requires further support towards a higher purpose of realising a Digital Malaysia and the benefits that it will give to more Malaysians; ensuring that no one will be left behind in this digital era and IR4.0.
Unlimited Support For Harimau Malaya With Unstoppable Uni5g
KUALA LUMPUR, 12 October 2023 – TM is pleased to announce an immersive digital experience that can be enjoyed by local football fans and Harimau Malaya supporters in a combined effort with the Football Association of Malaysia (FAM). As the Official Technology Partner for FAM and Harimau Malaya, TM, through Unifi Mobile, has teamed up with Fresnel Group of Companies to revolutionise the home football viewing experience. With innovations such as 360° Live Streaming of matches and a Virtual Reality (VR) Tour of the National Stadium Bukit Jalil powered by 5G, fans will enjoy an enhanced experience when cheering for our national team during the upcoming Pestabola Merdeka, both at home and on-the-go. On 13th October, fans can experience the Malaysia vs India match from diverse angles in a stunning 8K quality made possible through 360° Live Streaming, enabled by 5G technology. This immersive experience is delivered through dual 360° cameras strategically positioned at the National Stadium Bukit Jalil’s grandstand and goalposts, offering a one-of-a-kind viewing experience that allows fans to be virtually part of the action and feel the pulsating energy of the stadium. Malaysians are invited to immerse into this experience by tuning in to Unifi’s YouTube channel (youtube.com/@UnifiYourWorld) or visiting unifi.com.my/harimaumalaya. Hardcore football enthusiasts should also not miss the opportunity for an interactive VR Stadium Tour, exclusively accessible through Unifi Mobile Prepaid’s Limited Edition Harimau Malaya starter packs. This unique experience offers fans the chance to explore National Stadium Bukit Jalil – the proud home of Harimau Malaya. Fans will gain access to iconic behind-the-scenes locations including locker rooms and training facilities, previously unseen by the public. Through UNI5G, fans can virtually experience the excitement of the pitch as if they were physically present there, all from the comfort of their own homes or while on the go. Shanti Jusnita, TM’s Chief Marketing Officer said, “We are proud to partner with FAM and Fresnel Group of Companies in supporting Harimau Malaya and our local football scene. We have always seen football to be a bridge where Malaysians come together to support our Harimau Malaya team. As an enabler for Digital Malaysia, we are doing our part to innovate the digitisation of home football by bringing 5G applications and experiences to Malaysians through our UNI5G.” Unifi has been crowned the 2023 award winner by Ookla® for delivering the best mobile video experience in Malaysia. As the nation comes together to rally behind our Harimau Malaya team during Pestabola Merdeka, fans can be confident they are backed by the nation’s leading mobile video experience provider. In addition, through the Unifi Mobile Roar Louder campaign, fans visiting the Unifi Mobile booth at the Pestabola Merdeka from 13 to 17 October will have an exclusive chance to grab the coveted Limited Edition Harimau Malaya Jersey, Harimau Malaya Mafla, general access tickets and an instant RM5 cashback when they purchase UNI5G Prepaid Monthly Unlimited Plan, which includes Unlimited 4G+5G Data, Unlimited Calls and 5GB Hotspot – all for only RM45. Datuk Haji Hamidin Haji Mohd Amin, President of FAM said, “We are glad to see the efforts and outcome from the partnership we have with TM at this point. We are excited to present to our local football fans this 360° immersive viewing experience. Offering this experience with the long missed Pestabola Merdeka will hopefully be something unforgettable.” Fans are also invited to visit the Unifi Mobile booth at the National Stadium Bukit Jalil on 13 - 17 October to participate in various exciting activities. To know more about Unifi Mobile Prepaid and its exclusive offering, visit unifi.com.my/prepaid. *Unifi is Malaysia’s Speedtest Awards™ winner for Best Mobile Video Experience during Q1-Q2 2023 period. Based on analysis by Ookla® of Speedtest Intelligence® data for Q1–Q2 2023. Ookla trademarks used under license and reprinted with permission.
Chairman of Malaysian Communications and Multimedia Commission pays a visit to TM’s 5G use cases in Langkawi
The Company also deployed the region’s first 5G Standalone (SA) network Telekom Malaysia Berhad (TM) was honored to receive an official working visit by Al-Ishsal Ishak, Chairman of Malaysia Communications and Multimedia Commission (MCMC) to TM's 5G use cases in Langkawi, Kedah recently. The transmission of 5G service in Pulau Langkawi is utilising the region's first 5G Standalone (SA) network, deployed by TM. Al-Ishsal and his delegates were received by Rosli Man, Chairman of TM; Ir. Ts. Azizi A. Hadi, Chief Network Officer, TM; Ahmad Taufek Omar, Executive Vice President / Chief Executive Officer, TM ONE; and Dr. Sharlene Thiagarajah, Chief Executive Officer, TM Research and Development Sdn Bhd (TM R&D). Commenting on the visit, Rosli said: "We are very honored to welcome the Chairman of MCMC to experience our 5G use cases which include UNESCO 8K Virtual Reality (VR) at Langkawi International Airport (LIA) as well as to observe TM's 5G network, smart and innovative solution operations centre at its 5G Command Centre (5GCC). 5GCC serves as an integrated command centre for all our 5G network, smart and innovative solutions in Langkawi. As the national telecommunications infrastructure provider of Malaysia's Digital Nation aspirations, we are indeed excited to be part of this 5G Demonstration Project undertaken by MCMC and showcase our 5G use cases. This signifies our support and capabilities to realise MCMC's aspiration in progressing humanity towards improving the quality of lives of the Rakyat. TM, via our innovative and comprehensive products and solutions will continue to work closely with the Government and MCMC to lay the foundation for Industrial Revolution 4.0 (IR4.0) and rolling out 5G nationwide to serve a more digital society and lifestyle, digital businesses and industry verticals, as well as digital Government." During the visit, Al-Ishsal was briefed on TM's capabilities and readiness to deploy 5G network solutions as well as how the Company can power the Government's Digital Malaysia aspirations through its innovative products and solutions. TM also aspires to work together with the local authorities, particularly in Langkawi to make it a safe tourist destination via TM's solutions. Under the 5G Demonstration Project, TM through its enterprise and public sector business solutions arm, TM ONE and its research and development arm, TM R&D are deploying 11 use cases in Langkawi as below: Smart Safety and Security Solutions – a real-time monitoring system consisting of cameras and related monitoring equipment placed in strategic areas to serve variety of purposes, including building/grounds security, crime prevention, and traffic observation and integrated with TM's emergency response team. Smart Agriculture Solutions – a solution that offers single display and real time monitoring that provides information on indoor farming environment's key parameters such as temperature, humidity, grow lights intensity and selected plant parameters that are critical for timely decision making and ensuring optimality of the growth conditions. Smart Traffic Lights Solutions – data driven solution that provides a single dashboard for monitoring and helps to improve traffic flow by reducing waiting time at traffic lights, improve traffic congestions and management of traffic. Smart Parking Solutions – parking system that provides real time parking bay monitoring using camera and Artificial Intelligence (AI) which enable users to search for vacant parking bay via mobile app. UNESCO 8K VR – 8K resolution streaming over cloud, showcasing 2 episodes focusing on (1) geopark & geosites; and (2) lifestyle in Langkawi. Tourists can have a taste of all these hidden treasures through an immersive virtual reality experience for some hard to access locations that are not for the less fit. Smart Tourism "My Smart City" application – a single, integrated mobile app for tourists' convenience as it consists of several features and services such as Trip Planner, Places of Interest, Events & Happenings, Parking, and Alert Button. Smart Retail Analytics – a platform that analyses customer's experience within a physical premise and offers insights to enhance that experience. With this solution, retailers can improve customer experience, sales and brand loyalty as the platform supports customised services, targeted advertising and visitor visibility. Smart Water Management System – an internet of water solution that offers seamless end-to-end smart water integration that improves non-revenue water management, optimises repair and replacement of ageing infra as well as improves response to weather events such as flooding and pollution through smart water level and water quality measurements respectively. Smart Vehicle Management System – a fleet management solution that provides management of commercial motor vehicles for work purposes. Smart Safety Helmet – a data-driven smart industrial helmet that helps make worksite safer by providing live, wireless monitoring and array of sensors (i.e. accident impact and geolocation) to perform various analysis of data. Geolocation People Safety – the tracking solution is designed to protect and connect with people who matters the most that allows users to locate loved ones and receive alert based on safety zone and SOS button through mobile application. With all these uses cases in place and most of it are already up and running, TM has the highest number of 5G use cases among the telcos participating in the 5G Demonstration Project. The demonstration project is for TM to test the new 5G features, explore the 5G technology system and assess the best way to deploy 5G infrastructure nationwide. The transmission of 5G service in Pulau Langkawi has been going live since early December, where TM has deployed the first 5G Standalone (SA) network in the country and the region. The Company is currently testing the implementation of a converged 5G core network which allows co-existence of Non-Stand Alone (NSA) and SA network. SA is the future of the 5G network deployment and this demonstration is crucial to fast track 5G implementation in the country. 5G speed tests conducted within TM's 5G use cases sites have successfully achieved up to 1.5Gbps. TM's aspiration is to deliver efficient and cost effective 5G infrastructure via infrastructure sharing approach, through the access regulations implemented by MCMC. This is by leveraging on its extensive fibre networks, including the submarine cables, telecommunications towers, and Cloud computing as well as ready Data Centres to support the 5G era in Malaysia. In terms of devices and use cases, its wholly-owned subsidiary, TM R&D is also developing and experimenting 5G related equipment to get ready for the upcoming 5G.
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