24 Aug 2022

TM delivers double digit revenue, EBIT and PATAMI growth in Q2; on track to achieve its 2022 market guidance

TM delivers double digit revenue, EBIT and PATAMI growth in Q2; on track to achieve its 2022 market guidance Article Header
TM

2Q2022 Key Highlights (vs 2Q2021)
 

  • Increased demand for Internet and Data translated to an 11.8% growth in Operating Revenue, at RM3.09 billion compared to RM2.76 billion
  • Manpower and other OPEX cost optimisation contributed 81.3% EBIT growth, recorded at RM702.7 million
  • PATAMI up 73.0% at RM378.0 million from RM218.5 million, as a result of higher operating profit and lower net finance cost
  • Invested 15.7% of revenue in CAPEX or RM484.5 million in fibre expansion, network upgrades and support systems
  • Free Cash Flow increased 36.4% at RM730.5 million, mainly attributed to increase in revenue and cost optimisation initiatives
  • Interim Dividend of 9.0 sen per share declared with Dividend Reinvestment Scheme applicable (DRS)  
  • On track to achieve its 2022 market guidance, TM continues to strengthen core businesses while investing in new growth areas


Telekom Malaysia Berhad (TM) has sustained its growth trajectory, delivering an excellent set of financial results across all key metrics for the second quarter ended 30 June 2022, offering converged services and solutions and demonstrating its resilience against increasing competition from other telco and technology players.

The Group’s operating revenue grew by 11.8% to RM3.09 billion, compared to RM2.76 billion in the same quarter last year (YoY), on a foundation of strong performance across every customer segment and a sharp increase in revenue from all lines of service, particularly Internet and Data.

Optimisation efforts enabled TM to record lower manpower and other OPEX costs, which led to higher Earnings Before Interest and Taxation (EBIT), up 81.3% at RM702.7 million compared to RM387.6 million YoY.

Profit After Tax and Non-controlling Interest (PATAMI) was up 73.0% at RM378.0 million from RM218.5 million YoY, on the back of accelerated demand for connectivity, services and digital solutions. The Group applied the 33% Cukai Makmur statutory tax rate accordingly for the current quarter.

In addition to Group-wide cost optimisation initiatives, the revenue jump helped drive an increase of Free Cash Flow by 36.4% to RM730.5 million YoY, putting TM in a solid position to make future investments and further reduce debt.  

TM also declared an Interim Dividend of 9.0 sen per share in line with its policy to distribute yearly dividends of 40% - 60% from its PATAMI. The DRS is applicable for this dividend tranche to provide flexibility to shareholders, enabling participation into the Group’s continuous growth momentum.


unifi: Maintaining growth momentum

As the leading convergence provider in Malaysia, unifi recorded a 10.3% revenue increase from RM1,272.0 million to RM1,402.6 million in the current quarter, driven primarily by continuous growth of fixed broadband subscribers, which recorded a 14.1% increase from the same quarter last year.

unifi continues to innovate the home entertainment landscape, rapidly adapting to consumer consumption patterns through more attractive content that can be viewed both at home via high-speed broadband as well as on mobile devices via the playTV@unifi app. Its growing content ranges from Hollywood to Hallyu, offering variety for everyone.

unifi's focus also extended to local SME businesses with the month-long #BelanjaDiSME campaign, as well as the SME Digitalisation Grant (SDG), which provides entrepreneurs with up to 50% savings for internet subscriptions and digital solutions.


TM Wholesale (TMW): Leading the charge in positioning Malaysia as a digital hub

TMW continues its march to be the nation’s preferred network infrastructure provider and to position Malaysia as a digital hub. Revenue for the current quarter increased by 26.4% from RM585.3 million YoY to RM739.9 million, contributed mainly by higher revenue from data and voice services.

TMW’s compelling performance is underpinned by escalating domestic data demand and new deals secured on the international front. It recorded the highest installation for High-Speed Broadband (HSBB) Access in June 2022, driven by mobile network operators (MNOs) and content service provider under JENDELA. TMW also delivered more than 4,500 cumulative 4G and 5G backhaul sites in supporting the MyDIGITAL blueprint for enhanced digital inclusivity nationwide.

On the international front, TMW has secured new deals with a US-based hyperscaler and a North Asian digital provider. Simultaneously, its collaborative agreement with Globe Telecom will enable its customers to enjoy superior gaming experiences, a strategic move to expand its business beyond its telco offerings.


TM One: Stronger performance amidst market challenges

The Group’s enterprise and public sector arm, TM One, recorded an increase in revenue of 4.1% YoY to RM854.6 million, with growth from recurring business across the enterprise and government sectors. Global supply chain challenges and delays, however, continued to impact its operations and subsequent delivery of several customer projects.  

As the sole local provider for the Government’s MyGovCloud initiative, TM through TM One, is the only hyperscale cloud provider to offer data residency, data locality and data sovereignty for the Malaysian Government and its citizens. This eliminates potential risks from international regulations, policy interventions, or risk of Malaysian data housed beyond Malaysia’s borders.


Credence: Spearheading TM’s growth into the digital tech space

Responding to the fast-growing market demand for the digitalisation of enterprises, Credence was recently launched to drive greater levels of digital capabilities and technology skills for the Group’s corporate customers.

Established as a start-up, Credence is TM’s new cloud and digital services company, focusing on becoming a trusted technology partner to accelerate the digital transformation of large enterprises and the public sector. Leveraging TM’s existing technology partners and new ventures, Credence will also accelerate the Group’s transformation in the digital tech space.


Commentary and Outlook from Imri Mokhtar, TM Group Chief Executive Officer

“At the mid-point of 2022, our financial performance and results demonstrate TM’s ability to manage our businesses effectively despite the headwinds arising from a challenging and competitive business environment. These results are also a powerful testament of our transformation journey, and our commitment to deliver a sustainable and inclusive Digital Malaysia.

“unifi will continue its trajectory to provide converged solutions to both residential and SME customers. unifi Business, specifically, will double down on its efforts to provide new propositions to engage SME customers including promotional campaigns and financing options.

“TM One remains focused in enabling the digital transformation of the enterprise and public sectors. Complemented by its global partner ecosystem, TM One continues to make inroads on bespoke solutions engineered and supported by its in-house ICT capabilities.

“TM Wholesale is on course to provide a comprehensive suite of advanced wholesale communication services and solutions for both domestic and global fronts. TMW is poised to position Malaysia as a digital hub for the ASEAN region.

“As part of TM’s commitment to empower businesses on their digital transformational journey, the Group will also address the digital and tech skills gap through Credence. This new digital services subsidiary will deliver a differentiated advantage for enterprise digital solutions, providing greater and faster time-to-value with customised options for enterprises.

“Looking ahead, 5G will level the playing field and move the industry away from network-based to service-based competition. TM welcomes the Government’s call for the industry to take up equity stakes in DNB. 5G will open up and expand the opportunities and growth areas for all of TM’s business segments – consumers, SMEs, enterprises, wholesale as well as digital services. We look forward to rolling out 5G-enabled products and solutions and unlocking value to meet customers’ demands.

“As Malaysia’s convergence champion, we believe 5G will strengthen our convergence proposition, and our customers will be encouraged to transition to 5G in the near term.

“Ultimately, TM’s growth and differentiation, whether in 5G, fixed broadband or digitalisation, will hinge on creating and offering exceptional customer experience, as we continue on our evolution towards becoming a human-centred technology company.”

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16 Dec 2019
TM once again soars high at NACRA 2019!

The Company was recognised as among the best at the annual Corporate Report awards ceremony Telekom Malaysia Berhad (TM) has been accorded the Best Annual Report (Silver) at the recent National Annual Corporate Report Awards (NACRA) 2019. The Company was once again recognised as a leading corporate institution in Malaysia when its 2018 annual report bagged four (4) excellence in major categories. The awards were: Overall Excellence Awards for Most Outstanding Annual Report of the Year (Silver) Best Annual Report in Bahasa Malaysia (Gold) Best Sustainability Reporting Award (Silver) Industry Excellence Award for Main Board Company in Telecommunications & Media category – 23 consecutive years Commenting on the win, Dato' Noor Kamarul Anuar Nuruddin, Group Chief Executive Officer, TM, said, "We are indeed very excited and honoured to once again receive multiple awards at NACRA 2019. These recognitions not only reflect our good compliance to Bursa Malaysia's stringent listing requirements, but more importantly, the award attests to the high standards we place on shareholders' communication. It also demonstrates our commitment towards upholding a high level of corporate governance, transparency, disclosure of information to our stakeholders as well as integrated corporate reporting. This is in line with our tenet on the importance to achieve the highest levels of corporate governance, in order to build trust and credibility with our key stakeholders." "I would like to take this opportunity to congratulate each and every Warga TM for their hard work and tireless effort towards producing the 2018 Annual Report. I am personally proud with the achievement and hope that this will give a boost for all of us to deliver better. This win at NACRA also definitely further strengthen our position as one of the country's leading corporate institutions," added Dato' Noor Kamarul. NACRA is jointly organised by Bursa Malaysia Berhad, Malaysia Institute of Accountants (MIA), and The Malaysia Institute of Certified Public Accountants (MICPA). The key objective of NACRA is to promote excellence in corporate reporting, greater transparency and accountability by respective parties in their financial reporting and the awards are to acknowledge and recognise high quality corporate reporting.

27 Dec 2020
TM expands its unifi service to more areas in Kuching

Residents of three (3) more villages in Kuching namely Kampung Boyan, Kampung Gersik and Kampung Surabaya can now enjoy high speed Internet connectivity with unifi. Telekom Malaysia Berhad (TM), through TM Sarawak, today expanded its unifi service to three (3) more villages in Kuching, Sarawak namely Kampung Boyan, Kampung Gersik and Kampung Surabaya (Kpg BGS). The service expansion has provided an opportunity for new and existing TM customers in the area to experience high-speed Internet connectivity delivered via fibre optic network. To mark the occasion, a special event titled “Juh Tukar Ke unifi @ Tebingan Sungai BGS” was held and launched by YB Datuk Dr. Haji Abdul Rahman Haji Junaidi, Minister in the Chief Minister’s Department (Islamic Affairs & Dewan Bandaraya Kuching Utara (DBKU)) and Assistant Minister of Utility (Water Supply). The launch was witnessed by Adiman Ajem, Director of Malaysian Communications and Multimedia Commission (MCMC) Sarawak and Sudarnoto Osman, Chief Executive Officer, Sarawak Digital Economy Corporation (SDEC). Also present at the event was Jafer Sadig Abdul Lathiff, State General Manager, TM Sarawak. Speaking at the event, YB Datuk Dr. Haji Abdul Rahman said: “We welcome the expansion of unifi to Kampung Boyan, Kampung Gersik and Kampung Surabaya as this signifies TM’s continuous effort to bring high speed broadband connectivity to more areas in Sarawak. This initiative is hoped to boost the growth of local industries such as Kek Lapis Sarawak and Ikan Terubuk Masin, thus promoting digital economy and adoption of a more digital lifestyle amongst the local communities. As Malaysia’s national telecommunications services provider, with its extensive network and expertise, I believe TM is more than capable to facilitate Sarawak’s digital transformation journey.” Meanwhile in his speech, Jafer Sadig said, “As the enabler of Digital Malaysia aspiration, we are excited to deliver our unifi service to Kpg BGS so the residents there can fully utilise the high speed connectivity to cater to their digital lifestyle. We will also continue to upgrade the network infrastructure to fibre optic beyond Kpg BGS in Kuching Division to fulfill the increasing demand for unifi. This has become more essential as the nation adapts to the new normal in which our activities including work, education, business and leisure have been digitalised. We hoped that the availability of unifi service to more areas will enable Sarawak citizens to reap the benefits of digital communications,” he said. “This expansion also reflects TM’s commitment and support towards the Government’s Jalinan Digital Negara (JENDELA) action plan to deliver connectivity to all. TM, as a responsible nation-builder, will continue to serve the nation and establish the ecosystem for a digital society, digital businesses and digital Government through our solid network infrastructure towards enabling Digital Malaysia,” he added. At the event, TM Sarawak also rewarded selected new unifi customers from its consumer segments as an appreciation for their trust and support for the brand. Besides that, a digital marketing workshop was held in collaboration with SDEC which saw the participation of 20 aspiring digital local entrepreneurs. YB Datuk Dr. Haji Abdul Rahman also went for a walkabout around Kpg BGS and engaged with the residents where he reiterated the need for the community members to play their part in safeguarding the newly deployed communication infrastructure for everyone’s benefit. New unifi Plans unifi is now available in better value packages to cater to the dynamic needs of all customers. Among available plan options are: unifi 30Mbps plan at RM89 per month: Offers unlimited data for you to get the best internet experience for your family at home. Comes with 16 free channels on playTV@unifi app downloadable on Apple App Store or Google Play Store. unifi 100Mbps plan at RM129 per month: For customers who need faster speed for their advanced digital lifestyle such as online entertainment, home surveillance, and e-sports among others Comes with unlimited data, free 600 minutes talk time to all mobile and fixed lines nationwide. Options to choose unifi TV’s Aneka Plus, Varnam Plus or Ruby Plus premium entertainment packages to be enjoyed via unifi playTV app for non-stop entertainment on-the-go. unifi Your World Campaign from as low as RM198 per month: Total Convergence Home Broadband package comprising internet, content and mobile with savings of up to RM200 per month for seamless internet experience at home. Comes with unifi TV’s Ultimate Pack bundled with unifi Plus Box and unifi Mobile 4G LTE with unlimited data, voice and SMS. Can be supplemented with unifi’s Mesh Wi-Fi to boost customers’ Wi-Fi experience at home by eliminating Wi-Fi dead spot for only RM15 per month. Exclusive for the 500Mbps and 800Mbps packages, unifi is giving out a FREE Deco M9 Plus Mesh Wi-Fi. unifi Mobile 99 Unlimited postpaid plan for only RM59 per month: Exclusive offer for unifi Home Broadband customers (Normal Price: RM99 per month): Offers unlimited data, calls and SMS, with no contract. Comes with 10GB LTE hotspot pass every month. Customers may keep their number and switch to unifi Mobile with zero upfront payment. unifi Mobile #BEBAS prepaid with options of RM10, RM13, RM15 or RM35: Comes with more data to stream, game, shop and browse. Customers can opt to buy add-ons if they need more data to enjoy their favourite apps and make more calls to chat all day. To find out more on unifi’s latest offerings, please visit https://unifi.com.my/

31 Mar 2021
TM calls on members of the public to donate pre-loved devices to the MYBAIKHATI campaign

Three (3) TMpoint outlets in Klang Valley now ready to accept device donations for B40 families Telekom Malaysia Berhad (TM) is supporting MYBAIKHATI, an industry-wide device crowdsourcing initiative aimed to collect and repair used communication devices to be distributed to low income families (B40). TM has set up three (3) of its TMpoint outlets in the Klang Valley as collection points to facilitate the donation drive. The outlets are TM Experience Centre (TMEC) at Menara TM, Bangsar; TMpoint Cyberjaya and TMpoint Shah Alam. The collection points will be progressively expanded nationwide in the near future. Commenting on TM Group's participation, Imri Mokhtar, Group Chief Executive Officer, TM said: "Everyone should have access to digital devices, especially in these times. The MYBAIKHATI campaign aims to provide the B40 community with usable smart devices for digital learning, work and business, so they have the means to weather through this unprecedented period. TM is excited to be part of this industry-wide initiative as together, we can help to alleviate the burden of the underprivileged and at the same time reduce the digital gap. We have kick-started this year-long donation campaign by setting up three (3) of our TMpoint outlets in the Klang Valley as the designated collection points in this pilot phase; so members of the public who are keen to donate can conveniently drop off their devices. We will definitely explore more locations nationwide to enable more people to take part and make their contribution." "We hope our fellow Malaysians, individuals and businesses, can come forth in the spirit of caring and generosity by donating your pre-loved used laptops, chromebooks, 4G-enabled tablets or 4G smartphones. The campaign runs for 12 months, so we hope you have ample time to sift through your belongings or consider a donation as you upgrade the devices for your own families. After making your contribution with us, don't forget to redeem a special token of appreciation for your kind gesture. Please join us in this collective effort towards enabling a more digital society, digital businesses and ultimately, a Digital Malaysia," he added. TM calls for all Malaysians and members of the public, be it individuals or companies to donate their used devices. TM will repair and refurbish devices that meet the terms and conditions with an allocation of up to RM500 for each device. The refurbished devices will then be distributed to eligible families in the B40 segment, through an appointed Non-Governmental Organisation (NGO), or through other various channels including selected "Pusat Internet Komuniti" (PIKs) nationwide. The donated devices that do not meet the requirements of the initiative will be responsibly recycled via the existing e-Waste programme. To be part of this noble initiative, simply follow these simple steps:​ Make sure your device is in working condition and is complete with its charger. Do make sure that your personal information and data has been completely deleted Bring the device(s) to the designated TMpoint outlets, meet with our staff and fill up the Device Contribution Form as well as the Contribution Acknowledgement Form Place the device(s) in the storage facility provided Redeem a token of our appreciation for your donation For more information on how you can be part of MYBAIKHATI initiative supported by TM, visit www.tm.com.my/mybaikhati.

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