As a result of jump in revenue and continuous cost optimisation initiatives, Earnings Before Interest and Tax (EBIT) increased 6.6% to RM1.71 billion from RM1.60 billion in 2020 despite one-off provisions, impairments and accelerated depreciation
Telekom Malaysia Berhad (TM or the Group) delivered yet another healthy set of financial results for the Full Year 2021 ended 31 December 2021 as compared to the same period last year (YoY), despite protracted impact from the ongoing pandemic on the economic and business front.
Fueled by strong growth in unifi revenue and fixed broadband subscribers, as well as sharp growth in the TM Wholesale business which registered increasing data demands from hyperscalers, and international and domestic service providers, TM recorded a 6.4% rise in revenue to clock in at RM11.53 billion from RM10.84 billion in 2020.
This marked revenue improvement as well as the Group’s continuous cost optimisation initiatives led to the increase in Earnings Before Interest and Tax (EBIT), up 6.6% YoY to RM1.71 billion, from RM1.60 billion last year. Profit After Tax and Non-Controlling Interests (PATAMI) at RM895.2 million dipped 11.9% contributed by higher taxation including provision for Cukai Makmur, lesser interest income and forex losses, as well as impairment of TM’s mobile assets as the Group prepares itself for 5G.
Based on its steady financial position and strong Free Cash Flow generation, the Board of Directors proposed the final interim dividend at 6 sen per share, resulting in a total dividend of 13 sen per share for 2021, in line with the Group’s growth investment strategy.
CAPEX for the year was reported at RM1.70 billion, or 14.7% of revenue, reflecting TM’s commitment to reinvest in business expansion, new growth areas and provide great experience and services for its growing base of customers. Free Cash Flow at RM2.19 billion rose 9.5% from RM2.00 billion, ensuring steady growth ahead of a demanding future.
unifi: Record-breaking revenue, total subscribers
It was a landmark year for unifi, contributing to the Group’s strong performance. Overall unifi revenue grew by 10.3% driven by increased fixed broadband subscribers, with 2.78 million cumulative registered subscribers - the highest number of unifi and fixed broadband customers registered, as well as highest number of ports installed.
In addition to unifi’s drive to reduce broadband downtime to the absolute minimum for its customers, the business introduced five #unificares initiatives to refine its end-to-end customer experience, with the highlight being unifi’s 24-hour service restoration guarantee, the first of its kind in the Malaysian telecommunications industry. In its effort to support SME recovery and growth, unifi has offered more than 377,000 local SMEs special packages with complete digital ecosystem to help them to grow their business and stay competitive.
unifi will continue to maintain its leadership in convergence of broadband, content, mobile and solutions for both home and SMEs customers. With online connectivity playing a central role to enable Digital Malaysia, unifi bridges the connectivity gap by serving customers with innovative and high-quality products and services.
TM Wholesale (TMW): Realising 5G and Malaysia’s digital hub aspiration
TM continues to drive wholesale business for both domestic and international segments via TM Wholesale (TMW). With a strong performance last year, TMW’s posted revenue grew by 14.7% due to solid partnership expansion with domestic and international customers.
Domestically, as the preferred fibre service provider, TMW will continue to pursue 4G and 5G fibre infrastructure deployment as well as promoting collaboration with domestic service providers, in line with the Government’s JENDELA initiative. The 5G fibre leasing services (worth RM2 billion over 10 years) for Digital Nasional Berhad (DNB)’s 5G infrastructure needs, is a testament of TM’s commitment to infrastructure sharing in enabling excellent wireless solutions and services. TMW also recorded the highest active ports subscription for wholesale High-Speed Broadband (HSBB) access with more than 550,000 cumulative ports for Malaysian fibre broadband providers.
On the international front, TMW continues with its aspiration to become a digital hub for the ASEAN region through strategic collaborations with hyperscalers and global service providers. The year saw a solid achievement with 190 new deals from hyperscalers and global service providers for various wholesale International Data offerings. This translated into the highest annual revenue contribution from major hyperscalers worldwide, a milestone year in building a regional hub position for Malaysia.
TM ONE: Custom solutions and digital adoption amid a challenging landscape
TM ONE is expected to remain competitive amidst the challenging economic and business environment. This is driven by its strong value proposition of offering the end-to-end managed services and digital solutions, backed by robust digital connectivity and infrastructure.
As the only home-based Cloud Service Provider (CSP) with data sovereignty assurance, TM ONE will continue enhancing its Cloud service as a complete digital solution by embedding analytics, smart services/IoT and cybersecurity to cater for the key industry verticals. Enterprises and public sector services are on an accelerated path to digitally transform, leveraging on cloud architecture and smart services as a foundational pillar to unlock innovation opportunities, stay resilient and maintain a competitive edge, all in line with Malaysia’s MyDIGITAL aspirations.
In becoming a trusted cloud partner, TM ONE focused its efforts in boosting proficiencies and competencies of its solution consultants, technology experts as well as international certifications. It has attained four (4) International Standard certifications (ISO/IEC) for Cloud α (pronounced as Cloud alpha) on Information Security Management System (ISMS), Personal Data Protection Act (PDPA), Business Continuity Management System (BCMS) and Cloud Specific Controls.
Commentary and Outlook from Imri Mokhtar, TM Group Chief Executive Officer
“As the enabler of Digital Malaysia, TM remains steadfast in its efforts to realise the national digital aspirations. We are committed to support the Government’s efforts to re-build the economy post-pandemic.
For 2021, TM has shown positive results, driven by the New TM Transformation Programme which has delivered overall growth in TM’s revenue and EBIT. Cost rationalisation has also significantly improved the Group’s profitability.
As TM enters its second year of transformation in 2022, we are activating more programmes to ensure we quickly move forward as a growth company, and keep pace with our trajectory. TM’s revenue growth is expected to remain intact, in line with the Group's market guidance, which is between low to middle single digit growth, while EBIT is projected to be more than RM1.80 billion, driven by TM’s three Lines of Business: unifi, TM ONE and TM Wholesale.
We expect to invest between 14% to 18% of our revenue this year on Capex, reflecting our continued commitment to reinvesting into growth areas, capability, and capacity building, as well as enhanced customer experience.
In promoting sustainability, TM aligns its ESG (Environmental, Social, Governance) vision and commitments to national and global aspirations. For Environmental, TM is committed to achieve carbon emission reduction by 30% in 2024, 45% by 2030 and Net-Zero emission by 2050. On Social, TM is set to enable MyDIGITAL Blueprint 2025 targets by ensuring at least 70% of premises have access to high-speed Internet. Under Governance, TM works hand-in-hand with the Malaysian Anti-Corruption Commission (MACC) to continue upholding our zero-tolerance to any form of corruption and maintaining the highest standards of corporate governance.
This year, we will continue to power a digital nation, by delivering great Customer Experience, Solutions and Connectivity Excellence. This is made possible with unwavering support from its core execution engine; the employees or "Warga TM" who are fully dedicated and committed to enabling a Digital Malaysia, bridging the digital divide and in step, reducing the income divide.”
In its pursuit to strengthen its core connectivity and invest more in digital, TM is future-proofing the organisation with future-ready skills and digital workforce, as part of its aspiration in becoming a human-centred technology company.”
Guidance for 2022 is summarised below:
Revenue Growth Low to middle single digit growth | Low to middle single digit growth |
EBIT | More than RM 1.8 billion |
CAPEX / Revenue | Between 14% - 18% |
YOU MAY ALSO LIKE
TM Global extends collaboration with Radian Arc to strengthen its Cloud Gaming offerings
Seoul, South Korea, 1 October 2024 – TM Global, the domestic and international wholesale business arm of Telekom Malaysia (TM), is pleased to announce the extension of its collaboration with Radian Arc, global cloud infrastructure provider, for another two years. This continued collaboration will focus on expanding TM’s cloud gaming offerings at wholesale level. Building on the successful collaboration initiated in 2022, the extended collaboration will see TM Global and Radian Arc further enhance Malaysia's cloud gaming landscape, as well as expanding these services to other regions including Middle East and African countries. The extended agreement will continue to leverage on Radian Arc’s GPU Edge technology complemented by low-latency SHAKS Gamepad controller developed by Radian Arc’s South Korea-based partner, AKSys Co. This will enable a seamless gaming experience and boost TM Global’s capability in offering high quality, real-time applications. The signing took place in Seoul with the presence of YB Fahmi Fadzil, Malaysia’s Minister of Communications, who arrived in South Korea for a working visit. TM was represented by Khairul Liza Ibrahim, TM Global’s Executive Vice President, while signing on behalf of Radian Arc was its Chief Executive Officer (CEO), David Cook. Khairul Liza Ibrahim said, "This collaboration with Radian Arc reinforces our commitment to providing cutting-edge solutions that drive digital transformation. The versatility of GPU technology can be extended beyond gaming offerings, allowing us to cater to a diverse set of workloads and meeting the evolving needs of our customers. We are excited to expand our collaboration with Radian Arc, which not only enhances our existing services but also create opportunities to tap into new markets.” This collaboration will accelerate TM Global’s aspiration to further explore new innovative services like Bandwidth-on-Demand (BoD), enabling flexible, cost-efficient and real-time capacity management, and GPU-based services. This will enable TM to offer high-performance solutions for various applications such as Large Language Model (LLM) training, AI inferencing, and Desktop-as-a-Service (DaaS). These new offerings will empower our customers with scalable, cloud-based resources that drive innovation for their digital transformation journey. David Cook, CEO of Radian Arc, commented, “We are thrilled to extend our partnership with Telekom Malaysia, paving the way for groundbreaking services like GPU-as-a-Service and BoD. Together, we will not only enhance TM's offerings but also expand our reach to new regions, empowering businesses with the technology they need to thrive.” The collaboration reflects TM’s strategic roadmap towards becoming a Digital Powerhouse by 2030, aligning with its commitment to develop a converged ecosystem for digital transformation across all sectors, and strengthening Malaysia’s competitiveness as a key digital hub for Southeast Asia.
TM GLOBAL BAGS A DOUBLE WIN AT THE ASIAN TELECOM AWARDS 2024
KUALA LUMPUR, 5 March 2024 – TM Global, the domestic and international wholesale business arm of TM, clinched top honours in two prestigious categories: Telecom Company of the Year – Malaysia, and the Wholesale Company Initiative of the Year – Malaysia, at the Asian Telecom Awards held in Singapore. This marks the second consecutive year TM Global has received these accolades, solidifying its position as a leader in shaping the telecommunications landscape within Malaysia and across Asia. Khairul Liza Ibrahim, Executive Vice President of TM Global, said, "The awards underscore TM Global’s efforts as a catalyst of digital adoption across industries and the nation’s 5G ecosystem. Internationally, we serve as the gateway for businesses seeking to expand into ASEAN and vice versa. TM Global plays a pivotal role in advancing AI implementation and platform-play services and remains committed to driving innovation and bringing connectivity and digitalisation to all corners of the country." She further emphasised TM Global's transition from a traditional telco wholesaler to a digital enabler, "Our strategic shift up the value chain has enabled us to deliver a versatile edge ecosystem, empowering the next wave of technologies and applications. This recognition is a reaffirmation of our work in pioneering digital solutions to transcend borders and driving connectivity across the region." TM Global’s initiatives continue to help narrow the digital divide and nurture digital opportunities through the expansion of high-capacity connectivity infrastructure nationwide and the deployment of two additional International Internet Gateways in East Malaysia. Internationally, TM Global continued to bolster its connectivity strength, facilitate content distribution through TM Edge, and expand its platform services to connect service providers worldwide with the vibrant ASEAN market. The Asian Telecom Awards, hosted by the Asian Telecom magazine, a publication of the global Charlton Media Group, honours businesses and initiatives that are not only driving progress in the telecom industry, but have also ignited transformative shifts that have reshaped the digital landscape. These recognitions are a testament to TM Global’s ability to support regional and international service providers through comprehensive digital infrastructure solutions, providing a seamless gateway for their expansion into the region.

Nurturing future digital leaders through YTM Future Skills Champion Schools
Enhances its adopted schools programme to be more holistic by embedding digital technology and leadership skills TM, through Yayasan TM (YTM), recognises the need to equip the next generation with the digital and technology skills required for Industrial Revolution 4.0 (IR4.0). In view of this, in 2014, YTM began its Science, Technology, Engineering, and Mathematics (STEM) oriented programmes, such as robotics, 3D modelling, coding, and big data analytics, to promote those subjects amongst students and education communities at schools nationwide. In 2020, the modules were conslidated into TM Future Skills (TMFS) programme, with the aim of making it more comprehensive and beneficial to the intended participants. The programme was tailored to the syllabus outlined by the Ministry of Education (MOE) and covered the nine (9) pillars of the IR4.0. It has been receiving positive feedback from the teachers and students involved and more schools have requested to be part of the programme. Supporting MOE’s aspiration for digital education transformation, YTM continues to spread the positive impact of TMFS in a more structured approach. Towards this end, the foundation has embarked on TM Future Skills Champion School (TMFS School) initiative, as a continuation of the TM School Adoption Programme with enhanced contents. TMFS Schools foster future digital skills by embracing digital technology in its classroom activities where leadership, design thinking and cognitive abilities were emphasised to prepare the students for future employment. SMK Gunung Semanggol (SMKGS) in Perak, with more than 90% of its students from B40 families, was selected as the first TMFS School, aligned with YTM’s aspiration to assist B40 students in rural areas. To further facilitate the initiative, YTM is establishing TMFS Digital Hub at TMFS Schools where the schools will be equipped with a PocketLab, robotics set, 3D printer, smart TV, desktop, and digital learning content to gain more interest from its students as well as the neighbouring schools. "SMK Gunung Semanggol was identified based on its active involvement in various STEM initiatives, including previous TMFS programmes. The school also has passionate and dedicated teachers, where they adopt integrated and innovative approach for more in-depth understanding of the modules among the students. With such exposure and capabilities, we are confident that SMK Gunung Semanggol is able to play the role as a hub to spread the digital technology knowledge to more students and teachers including at the five (5) neighbouring schools, and approximately over 20 secondary schools in the Kerian district," said Izlyn Ramli, Director of YTM, during the launching ceremony of TMFS School in November 2022. Throughout this three-year programme, YTM, together with its strategic partner, Creative Minds, will work with Multimedia University (MMU), Yayasan Universiti Multimedia (YUM), TM Perak, and other YTM's partners to design and deliver engaging programmes providing the tools and support for students in rural schools to flourish. "We are also happy to see that SMK Gunung Semanggol promotes the development of other skills, such as urban farming and entrepreneurship, to empower the local communities sustainably. So as we continue to identify more potential schools in more states of Malaysia, we hope this programme will unearth more talented students towards building a competitive and sustainable community in the future," she added. Salmah Iman, the Principal of SMK Gunung Semanggol, expressed her enthusiasm, "We feel honoured and privileged to be chosen as the first TMFS School in the Northern Zone and Malaysia. We are excited and look forward to share the positive impact of this programme with the nearby schools. As we are committed to ensuring that this programme achieves its goals, we are also confident that YTM's support and assistance will help these students be prepared for future employment and enhance their standard of living." At the event, Bakri Arsad, Chief Assistant Director of Mathematics and Science, Learning Sector, Perak State Education Department, said, "We welcome such initiatives through collaboration with the private sector, especially for rural schools that need exposure to digital technology. These programmes will inspire students to explore their potential beyond academics and increase the number of students choosing STEM-related fields." During the launch, guests had the opportunity to visit the Pusat Sumber Sekolah Pendeta Za'aba and experience content and materials created by the students based on specific themes including unique handicrafts and martial arts performances. Guests toured the school's urban farm, where they sampled delicious cuisine prepared by students from the special education class using produce from the farm. SMK Gunung Semanggol provided a wonderful ambience of positive vibes that attract students' engagement and boosted their creativity. To date, STEM-related programmes by YTM, including TMFS, have benefited over 15,000 students and teachers from over 500 schools across the country. With the support and assistance of various interested partners, we hope this initiative will spark students' interest in pursuing their tertiary studies in technology and digital fields and equip the young generation with future-proof skills relevant to the future workforce.