29 Dec 2022
TM's decision to exit menara KL concession
Telekom Malaysia Berhad ("TM" or "the Group") wishes to clarify that Menara KL ("MKL" or "Tower") is owned by the Government while the operations and maintenance of the tower is granted under a concession. TM via its wholly owned subsidiary, Menara Kuala Lumpur Sdn. Bhd. (MKLSB) had undertaken the concession since 1996.
As part of its business transformation programme, TM is focusing its efforts and resources on strengthening its core business of telecommunications and technology. After due consideration on the change in the business nature of MKL, from telecommunications services to tourism and hospitality, TM has decided in October 2021 not to renew the MKL concession and informed the Government accordingly.
Subsequently in 2022, the selection process of the new Concessionaire was then taken up by the Government upon which TM was informed on the appointed company to take over the shares of MKLSB and the MKL concession. MKLSB shall continue to operate the concession and ensure the continuity of MKL operations for the Malaysian public, including international visitors.
Employees will remain employed with MKLSB under the new Concessionaire for a minimum period of 3 years. This is to ensure their welfare is protected in this transition.
In TM’s 3Q 2022 financial announcement to Bursa Malaysia, a reference was made in the subsequent changes to shareholding in MKLSB.
TM practices good governance and transparency in our business undertakings to preserve the interest of our customers and stakeholders. TM will provide our full cooperation and disclosures as required by the authorities.
Building on our commitment to enable a Digital Malaysia, TM will continue to deliver the best telco and technology services for the community, businesses, Government and industry.
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TM R&D Celebrates double win at the global TM Forum Excellence Awards 2020
In-house solutions SWIMS and IDEAS+ received global recognition for the Beyond Connectivity and A.I, Data & Analytics categories respectively Telekom Research & Development Sdn Bhd (TM R&D), the innovation arm of Telekom Malaysia Berhad (TM), added another feather to its cap when they recently bagged not one, but two (2) awards at the prestigious TM Forum Excellence Awards 2020. The awards were conferred to TM R&D for its innovative solutions namely Smart Water Integrated Management System (SWIMS) under the Beyond Connectivity and Artificial Intelligence (A.I) category, while its Intelligent Network Diagnostic & Expert Advisory System for Service Desk (IDEAS+) solution received the recognition under Data & Analytics category. Since 2007, TM Forum Excellence Awards recognises the world's leading companies for their innovative achievements spanning digital transformation, business and IT agility, customer centricity, cultural transformation, cross-industry partnering and collaboration, and product and service innovation in AI, data analytics, autonomous networks and cloud native IT. All entries were assessed by a global panel of judges based on the extensive materials submitted. Each year, the judging panels are carefully selected from varied global organisations to ensure a balanced approach and a wholly impartial view. Commenting on the double wins, Dr. Sharlene Thiagarajah, Chief Executive Officer, TM R&D said, "This is certainly a welcomed surprise and a proud moment for us at TM R&D. We are excited that two of our very own internally-developed smart solutions, deployed in collaboration with Air Selangor and Group Customer Experience at TM have been recognised by global industry experts such as TM Forum. Both solutions are now commercially available domestically and to the global market. We believe TM R&D is on the right track to support TM's Digital Malaysia aspirations and simultaneously accelerate Malaysia to become a digital nation." SWIMS is an Internet of Water (IoW) solution, essentially doing for water what Internet of Things (IoT) does for various other industries and verticals. These include electric utilities, transportation, smart cities and factory automation, to enable in-depth, new insights into the operations and the right tools to act on those insights. "SWIMS offers end-to-end smart water management that improves non-revenue water management. It optimises the repair and replacement of ageing water infrastructure as well as improves response to weather events such as water level and quality. Based on feedback we received from Air Selangor, with SWIMS, water usage visibility improved by 3,000% and meter reading accuracy improved 10-15% through automation," shared Dr. Sharlene. The TM Forum Excellence Awards also recognises another solution from TM R&D, IDEAS+ which is a one-stop advisory platform deployed at TM's contact centre. Using machine-learning algorithm, IDEAS+ assists the call centre agents to efficiently troubleshoot and resolve various customer issues. The objectives of the project were to reduce Average Handling Time (AHT) at the contact centre when entertaining customer calls, reduce repeated truck roll, increase the accuracy of troubleshooting and escalation as well as to achieve cost-saving. IDEAS+ is an intelligent diagnostic and advisory system for TM contact centre agents to provide predictive guideline as well as troubleshooting steps with more than 95% accuracy. Established in 2001, TM R&D is the centre of innovation for TM Group focusing on innovations that enriches humanity and bring progress to nations. Growing from strength to strength since 2016, TM R&D has won 15 globally recognised awards and generated more than 2,800 Intellectual Property Rights (IPRs) and 1,400 digital assets to-date. TM R&D's innovations all developed in-house cut across multiple verticals such as Utilities, Retail, Agriculture, Healthcare and Education with safety and productivity as the top priority. As TM R&D continues to expand beyond connectivity and into smarter digital ecosystems, its role in TM has become more prominent and exciting. For more information about TM R&D and its products and services, they can be contacted at business@tmrnd.com.my or log on to www.tmrnd.com.my or follow them on LinkedIn (TM Research & Development) for more news and updates.
Unifi TV Launches Original Content
Kuala Lumpur, 23 October 2023 – Unifi TV today launched Unifi TV Originals, its own original production to provide greater diversity and valuable content to its viewers. The series and movies line up are locally tailored to satisfy Malaysian viewers which include urban legends, folklore stories and social issues familiar to Malaysians. Customers will be able to enjoy Unifi TV Original series and movies starting with the first series of “Nak Dengar Cerita Hantu?” directed by Sabri Yunus and written by Sophillea. This is an 8-episode series of Malaysian urban legends and folklore tales passed down through generations. The casts featuring renowned local talents such as Namron, Beto Kusyairi, Nora Danish, Uqasha Senrose, Elizabeth Tan, Sean Lee, Thanuja and more will ensure the series remain a true Malaysian affair. Catch the premier of the series on 27 October 2023 with new episodes every Friday at 9.00pm, exclusively on DEGUP (Unifi TV channel 120). Viewers who missed the 9.00pm time slot, will be able to catch the episode through Unifi TV’s Catch Up feature. The series can also be streamed over the Unifi TV app. Anand Vijayan, TM’s Chief Commercial Officer and Executive Vice President of Unifi said, “We are excited to launch our Unifi TV Originals on DEGUP channel. These original productions allow us to compete with other content platforms and providers, offering diverse content to our viewers. This will also create opportunities to the local entertainment industry to showcase their work.” Partnering with local production houses; Golden Adventure Creative (Nak Dengar Cerita Hantu?), NS Star Sdn. Bhd. (Gemersik Berbisik series) and Nuansa Sdn. Bhd. (Bara Jiwa series) with well-known directors and cast like Sabri Yunus, Osman Ali, Amorizan, Elisya Sandha, Ezzrin Loy, Yasmin Hani and many more, Unifi TV aspires to produce high-quality and exciting content, for its viewers through Unifi TV Originals. “The rest of the original series spanning action, horror and thriller genres will be released in the next 12 months. Working with experienced talents in the industry will ensure the delivery of top-quality drama series and movies and we hope that this produces the best content for our Unifi TV subscribers while supporting development of the local entertainment industry,” concluded Anand. To find out more about Unifi TV and its current offerings, visit https://unifi.com.my/tv.
TM announces another steady full year performance (FY2021) with EBIT up 6.6% at RM1.71 billion; revenue up 6.4% at RM11.53 billion; declares 6 sen per share dividend
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%
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