25 May 2022
TM records steady performance in 1Q2022 with revenue & PATAMI up 2.9% & 4.4%; maintains focus on its growth strategies execution
In the second year of its Transformation, the Group is on track to achieve its 2022 market guidance, focusing on strengthening its core businesses and investing in new growth areas
Telekom Malaysia Berhad (TM) continued its growth trajectory and long-term business sustainability, recording a steady performance in its First Quarter ended 31 March 2022 as compared to the same period last year (YoY).
The Group's operating revenue increased by 2.9% to RM2.89 billion, compared to RM2.81 billion in the same quarter last year, driven primarily by increased demand for voice, Internet and multimedia. Despite rising competition to offer converged solutions among telco and other technology players, TM continued to deliver strong customer growth across its operations.
Capitalising on its core businesses and investing into new growth areas, TM further ramped up its transformation initiatives, delivering profit after tax and non-controlling interests (PATAMI) for the quarter at RM339.9 million or 4.4% higher than the RM325.5 million recorded in 1Q2021. The Group also recorded lower financial costs subsequent to the early redemption of its RM2.0 billion sukuk in March 2021, as well as lower foreign exchange translation losses on borrowings. The Group has applied the Cukai Makmur statutory tax rate accordingly for the current quarter.
Accelerating into the second year of its Transformation, TM brought forward its manpower optimisation to enable earlier realisation of expected benefits to the Group. This, along with foreign exchange impact on trade settlement has led to a 5.0% decrease in EBIT at RM560.4 million for 1Q2022 compared to RM589.7 million in the same quarter last year. Excluding these costs, the Group's underlying EBIT is 14.0% higher at RM650.2 million compared to RM570.5 million in 1Q 2021. Free Cash Flow is lower by 15.1% at RM658.8 million compared to RM775.7 million due to higher CAPEX as the Group continues to invest in business expansion and meeting customers' demands through technology refresh and network delivery, ensuring steady growth.
unifi: Double-digit revenue and subscriber growth
unifi continued its growth performance, recording revenue increase of 10.6% from RM1.25 billion to RM1.38 billion in the current quarter. Sustained by increasing demand from Internet, voice and sales of devices, with cumulative fixed Internet subscribers increasing by 17.5% against the corresponding quarter last year. unifi remains the largest growth contributor for the Group.
unifi will continue to maintain its leadership in fixed broadband and enhance its Fixed-Mobile Convergence (FMC), enriched with TV and streaming content. This reflects its commitment to improve its FMC customer experience with better and seamless service. unifi will also grow its SME digital platform as a one-stop service centre for solutions catering especially to SMEs nationwide.
TM Wholesale (TMW): Higher revenue from increased demand for data services
TM Wholesale (TMW) also recorded a growth performance for 1Q2022, with revenue increasing by 1.2% from RM631.9 million in 1Q2021 to RM639.5 million, mainly contributed by higher revenue from voice and data services. This was underpinned by increasing demand from High-speed Broadband Access (HSBA) and higher International Voice and Data.
To date, TMW continues to enable industry broadband and 4G network via its fibre infrastructure, with the ongoing 5G rollout further strengthening that role. On the international front, it will continue to serve other OTTs and hyperscalers with connectivity and data centres, while regionally, TM Wholesale aspires to establish Malaysia as a digital hub for ASEAN via new submarine cables, enhanced data centre solutions and edge computing.
TM One: Renewed focus on growing B2B digital solutions market
TM One, the Group's enterprise and public sector arm, recorded a 7.4% decrease in revenue from RM925.2 million to RM856.8 million in 1Q2022 due to decline in data services revenue.
Strengthening and growing its B2B digital solutions, TM One has focused its efforts on high potential industry verticals, namely healthcare, manufacturing, education, oil & gas, banking, financial services & insurance (BFSI) and public sector. It has entered a partnership with Tune Protect and Huawei Malaysia that saw Tune Protect becoming the first organisation in Malaysia to host an insurance core system on public cloud (Cloud αEdge).
Commentary and Outlook from Imri Mokhtar, TM Group Chief Executive Officer
"With our economy and borders reopening, TM is powering Malaysia's journey on its road towards recovery, by ensuring the vision of an inclusive and extensive Digital Malaysia becomes a reality.
"Into the second year of our Transformation, we are focused on strengthening our core business while investing into new growth areas to meet customers' demands. In ensuring sustainability in the long run, we continue to grow our profitability to invest and seize opportunities arising from digital acceleration.
"One of these opportunities is in the exciting space of digital solutions and services for enterprises. Building on TM One's existing capability and relationships with enterprises and the public sector, we will deliver speed and agility through our new digital arm Credence: a corporate start-up led by technology leaders.
"unifi continues to better its fixed broadband and Fixed-Mobile Convergence value proposition to improve customer experience, while expanding our offerings to provide quality entertainment to customers at home or on-the-go.
"We have also achieved some key milestones in our sustainability efforts. TM One has successfully secured the Green Electricity Tariff from Tenaga Nasional Berhad for its data centres in Kuala Lumpur, Cyberjaya and Johor Bahru, contributing to a lower carbon footprint as the demand for cloud storage inevitably increases. This is in addition to the existing Green Building Index (GBI) certification earlier obtained for its core data centres. TM's broader ESG commitment also remains consistent with Malaysia's initiatives towards achieving net-zero Greenhouse Gas emission for the country by 2050.
"Meanwhile, TM Wholesale continues to establish Malaysia as a regional digital hub via new submarine cables, edge computing, data centres and supporting international connectivity. On the domestic front, TM Wholesale continues performing its role as the enabler for industry broadband, 4G and 5G network via fibre infrastructure that will transform the nation's connectivity capabilities."
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TM Further Accelerates Its Sustainable Development
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Yayasan TM issues two requests for proposal (RFP) for Muzium Telekom Kuala Lumpur Transformation Plan 2022 - 2024; seeks interested parties to apply
Request For Proposal (RFP) On Food And Beverage (F&B) Operator At Muzium Telekom, Kuala Lumpur Yayasan TM (YTM), the foundation arm of Telekom Malaysia Berhad (TM), today has issued a Request for Proposals (RFP) seeking multiple partner organisations to be part of Muzium Telekom Kuala Lumpur Transformation Plan 2022 - 2024. YTM launched The Muzium Telekom Transformation Plan with the objective to placemake the 94-year-old heritage building as an engaging public space, for education, entertainment and monetisation opportunities. "We are calling on many experts and practitioners to join forces with us in the spirit of collaboration and creativity, to curate programmes, services, activities or events that can help us to reimagine and transform Muzium Telekom as a placemaking public venue that is vibrant, educational and inclusive to everyone," said Izlyn Ramli, Director of Yayasan TM. "As the economy has opened up, public spaces and museums are seeing an increasing number of visitors looking for iconic venues and engaging activities. Muzium Telekom's differentiation is through the marriage of technology and arts, where digitalisation plays a significant role, in line with our TM Group vision as a human-centred tech company and the enabler of Digital Malaysia. YTM will continue its ongoing mission to preserve and celebrate the nation's arts, culture & heritage, as well as supporting community sustainable livelihoods by placemaking Muzium Telekom into an engaging public digital arts space with future-forward immersive museums' exhibits and various community and micro-SME (such as retail and F&B) programmes," she added. Since 1994, Muzium Telekom also known as Muzium Telekomunikasi Negara, has been showcasing the history and evolution of telecommunications in Malaysia. Befitting the times, YTM aims to reinvigorate this beautiful historic building as an engaging hub that connect the dots across the many facets within the TM Group and beyond, to include the industry and overall ecosystem. Within TM Group, it aims to showcase talents from Multimedia University (MMU) students, alumni and faculty in digital, creative and cinematic arts as well as TM's heritage and innovation in telecommunications. Concurrently, this is extended to the rich ecosystem of collaboration partners in the same fields. In 2018, YTM launched the Telegraph Museum, Taiping graced by HRH the Sultan Perak, Sultan Nazrin Muizzuddin Shah. This unique and niche museum features the history of the country's telegraph communications system including its maiden breakthrough in Taiping, Perak and how technology has contributed to the development of the nation. Both Muzium Telekom Kuala Lumpur and Telegraph Museum Taiping aim to be key resources for students, researchers and the communities to deepen their understanding on the complex telecommunications industry and how it has contributed to both nationbuilding and the world telecommunication history. YTM is calling for interested parties to participate in two (2) RFPs issued earlier. Details are as follows: 1) Request For Proposal (RFP) On Food And Beverage (F&B) Operator At Muzium Telekom, Kuala Lumpur YTM is seeking F&B companies who are capable to manage end-to-end F&B outlets' operations at Muzium Telekom KL. The scope will be covering F&B outlets' concept (inclusive design & build), compliance to heritage building guidelines, F&B business model and operations. There are TWO (2) F&B outlets available at Muzium Telekom whereby the interested party can choose to operate F&B outlet 1 that is located at the corner lot in the front of main road or/and F&B outlet 2 which located in the courtyard of museum. These share a common kitchen located next to outlet 2. 2) Request Of Proposal (RFP) For The Appointment Of Museum Operator (Service Provider) For Muzium Telekom Kuala Lumpur And Telegraph Museum Taiping YTM is seeking proposals from firms / consortiums or interested qualified parties with experience in the museums / galleries / arts and culture / tourism or related experience industries to be The Museum Operator (Service Provider) for Muzium Telekom Kuala Lumpur and Telegraph Museum Taiping; and implement The Muzium Telekom Transformation Plan 2022-2024 By the year 2024, YTM hopes to complete the new museum experience built on the theme of "Art & Technology: Future Forward", providing access to a variety of experiences that educate, inspire and engage the public with telecommunication technologies and innovations. The new Muzium Telekom will unveil more than 27,000 sq ft of completely reimagined spaces, including its National Telecommunication Gallery, Digital Art Gallery, Museum Black Box Theater, Museum Cafe & Restaurant, Kids Discovery, Thematic Exhibition Rooms and many more. The RFPs can be downloaded at https://bit.ly/museumoperator or https://bit.ly/RFPmuseumcafe. The deadline for submitting proposals for Food And Beverage (F&B) Operator is 16 September 2022 and Museum Operator (Service Provider) For Muzium Telekom Kuala Lumpur And Telegraph Museum Taiping is 20 September 2022. YTM looks forward to all proposals and wishes participants all the very best in making these aspirations a reality for the community and the city.
TM Wholesale signs with globe to level up gaming and e-sports services in the Philippines
Partnership will enable Globe to leverage e-sports services utilising Swarmio’s plug and play Ember gaming platform for improved performance TM Wholesale, the wholesale arm of Telekom Malaysia Berhad (TM), has signed a collaborative agreement with Globe Telecom (Globe), for a nationwide rollout of Globe’s co-branded gaming solution called Globe Gamer Grounds powered by Ember in the Philippines. The partnership will provide Globe with access to Swarmio’s plug-and-play Ember gaming platform that will enhance Globe’s gaming and e-sports services and bring it closer to its millions of mobile and broadband end users. Leveraging TM’s established global network and infrastructure ecosystems, the platform enables Globe’s customers to enjoy ultra-low latency gaming experiences with faster download speeds. As the leading digital solutions provider in the Philippines, Globe operates nationwide fixed-line and broadband networks throughout the country, serving over 86 million mobile customers. Beyond providing telecommunications services, the Globe Group of companies also has a significant presence in various digital solutions businesses, leveraging its substantial customer base, distribution capabilities, and strategic partnerships to establish a footprint that spans numerous industry sectors including fintech, healthcare, entertainment, adtech, e-commerce, manpower, IT services, and venture capital. “We are thrilled to collaborate with Globe as the gaming and e-sports industry is now considered the world's biggest entertainment industry, with ASEAN gamers dominating the market. As a regional operator, TM Wholesale takes pride in making superior gaming experiences accessible to the industry via our wholesale offerings which provide a seamless and high-quality digital experience to users. This collaboration also aligns with our vision to create a more vibrant digital ecosystem throughout the region,” Amar Huzaimi Md Deris, Executive Vice President of TM Wholesale stated. Ralph Aligada, Head of Globe Games and Esports said, “With Globe's all-in-one gaming platform, the community of gamers will enjoy a seamless and high quality digital experience. We aim to excite all gamers regardless of age and skill level across the Philippines. We are hopeful that with this agreement, there will be more opportunities and innovative solutions that would benefit our gaming community and users in the country, perhaps even across the region.” Previously, TM Wholesale and Swarmio Media, a Canada-based gaming and e-sports technology company established a partnership to provide accessible and high-quality digital gaming and e-sports services throughout ASEAN. This partnership with Globe marks a breakthrough in TM’s collaboration with Swarmio Media, enhancing e-sports gaming and levelling up digital experiences for the Philippines and across the region.
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