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, PETRONAS AND GENTARI PARTNER TO DRIVE DIGITAL AND SUSTAINABLE INNOVATION FOR INDUSTRY AND NATION BUILDING
KUALA LUMPUR, 19 DECEMBER 2024 – TM has signed a Memorandum of Understanding (MoU) with PETRONAS through its digital arm PETRONAS Digital Sdn Bhd (PDSB), and clean energy arm Gentari Sdn Bhd (Gentari), to drive digital transformation and sustainable innovation for industries and the nation. Under this collaboration, TM and PETRONAS will explore new revenue streams through the expansion of product offerings to enterprise and consumer markets, and drive growth and innovation through data centre, advanced cloud and connectivity for Malaysian businesses. The integration of Information and Communication Technology (ICT) and Internet of Things (IoT)-based solutions is expected to optimise city services, improve operational efficiency, and enhance public services, contributing to a smarter and more sustainable future. The MoU was exchanged between Megawati Norhashim, Vice President, Enterprise Business, TM One; Ts. Shaharuddin Hamid Mustapha, Chief Executive Officer (CEO), PDSB; and Shah Yang Razalli, Deputy CEO & Chief Green Mobility Officer, Gentari; The exchange was witnessed by Shazurawati Abd Karim, Executive Vice President for TM One on behalf of TM; Ir. Mohd Yusri Mohamed Yusof, Senior Vice President, Project Delivery & Technology; and Izwan Ismail, Vice President of Group Technology & Commercialisation on behalf of PETRONAS and Gentari. Shazurawati said, “We are pleased to partner with PETRONAS to drive digital and sustainable innovations that will empower growth, industry advancements, and Malaysia's technological capabilities. TM’s established nationwide infrastructure and diverse solutions, aligning with PETRONAS’ goals for energy transformation. By harnessing the power of 5G, cloud, AI, and IoT, we are laying the groundwork for a more efficient and resilient future. This reflects our shared vision for a digitally advanced and sustainable Malaysia, a pivotal commitment in TM’s efforts to become a Digital Powerhouse by 2030.” Ir. Yusri noted, “Today marks a significant milestone in PETRONAS’ and TM’s collaboration, now further strengthened and poised for an even greater impact with Gentari on board. This MoU will foster the creation of valuable applications that harness the power of technology including clean technologies, which can serve as benchmarks for large-scale implementation across various industries. Anchored by PETRONAS’ commitment towards purposeful value creation and positive social impact, we are excited for the transformations ahead. Together, we aim to push the envelope of establishing a thriving digital ecosystem that is also environmentally sustainable." The partnership between Gentari and TM further explores the integration of clean energy solutions through solar and EV charging in TM facilities. Shah shared, “We are pleased to support this collaboration, which emphasises the role of clean energy in fostering Malaysia’s progress in digitalisation and sustainability. By integrating renewable energy and green mobility solutions into TM’s operations, we aim to contribute a sustainable pathway towards the nation’s energy transition. This collaboration underscores our shared effort to create a more sustainable digital ecosystem and supports Malaysia’s aspirations of achieving net zero emissions by 2050.” TM, PETRONAS and Gentari will continue to set new standards in the industry by harnessing cutting-edge technologies and sustainable practices to create new milestones in Malaysia’s digital transformation.
Get industry insights from the minds of leaders & experts in the inaugural official TM Blog
Telekom Malaysia Berhad ("TM" or "the Group") recently unveiled its Official TM Blog, providing direct access to thoughts and insights from the Group's top leaders and subject matter experts in the telco and technology sector. Following the strides of some of the world's biggest tech firms, the blog intends to become a one-stop information centre for key decision makers, analysts as well as the media, allowing them to get the latest industry happenings, new ideas, analyses as well as trends in digital technologies and transformation, sustainability, organisational culture and various other exciting topics. Written to engage and inspire an informed global audience, the articles are clustered into four segments namely Ideas, Trends, Achievements, and Insights. Readers can also bookmark articles and subscribe to the content that matters to them, as well as share the articles via social media. The Official TM Blog is updated monthly, and is accessible from the main page of TM's corporate website, https://www.tm.com.my or directly from https://blog.tm.com.my/.
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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