03 Mar 2023
TM DELIVERS LANDMARK 2022 PERFORMANCE (FY2022) Revenue up 5.1% at RM12.12 billion; EBIT up 22.2% at RM2.09 billion; PATAMI up 27.7% at RM1.14 billion
FY2022 Key Highlights (vs FY2021)
· Operating Revenue grew 5.1% from RM11.53 billion to RM12.12 billion, with growth across all customer segments and product lines
· EBIT grew 22.2% from RM1.71 billion to RM2.09 billion, driven by strong revenue growth and improved cost efficiency
· PATAMI grew 27.7% from RM0.90 billion to RM1.14 billion, contributed by lower financing cost
· CAPEX investment at 20.0% of revenue or RM2.43 billion, highest in 5 years primarily on growth in fibre service and network expansion
· Final interim dividend at 7.5 sen per share declared amounting to RM286.6 million, with total dividend of 16.5 sen per share amounting to RM627.5 million for 2022
· ESG rating upgraded, FTSE Russell rated 3.6 from 3.1 in 2021; CDP rated ‘B’ from ‘C’ in 2021. Both above industry average
· FY2022 overall performance showed strong results with good trajectory and operational excellence across all lines of business
The financial year 2022 (FY2022) performance, ended 31 December 2022, represents Telekom Malaysia Berhad’s (TM) progress of its 3-year transformation programme (2021-2023). Moving into the final year of this transformation phase, TM remains committed to its focus in delivering value to its stakeholders.
Operating revenue grew by 5.1% to RM12.12 billion, from RM11.53 billion in 2021, fuelled by demand in connectivity, solutions and infrastructure. TM continued to strengthen its core businesses across Unifi, TM One and TM Global amidst intensified competition in the market.
Through revenue growth and improved cost efficiency, TM’s Earnings Before Interest and Tax (EBIT) grew by 22.2% to RM2.09 billion, from RM1.71 billion last year.
Profit After Tax and Minority Interest (PATAMI) rose to RM1.14 billion from RM0.90 billion, up 27.7% through higher operating profit and lower financing cost.
Capital Expenditure (CAPEX) stood at 20.0% of overall revenue, amounting to RM2.43 billion invested to deliver growth in fibre services, network modernisation and upgrades.
Unifi’s continuous growth momentum
Unifi continues its leadership in converged solutions of fixed broadband, mobile services, digital content and solutions for both consumers and MSMEs, recording a revenue growth of 7.5% from RM5.22 billion to RM5.61 billion contributed by increased number of home and MSME customers.
Unifi fixed broadband customers grew by 9.3% and exceeded the 3 million mark in 2022. To celebrate this milestone, customers were rewarded with free viewing of all 72 Unifi TV channels for one month, as well as pay-per-view movie discounts in appreciation for their trust and loyalty.
Unifi launched its 5G services in November 2022, offering Uni5G plans to Unifi Mobile postpaid and prepaid customers. 5G will reinforce TM’s converged leadership to provide the widest and fastest all-in-one solution for fixed broadband, mobile service and digital content.
Unifi Business’ digital solutions continue to boost and support MSME’s digitalisation needs from cloud storage, eCommerce hub, cybersecurity and digital marketing, serving critical needs from connectivity to digital solutions, accelerating their business growth.
TM One drives enterprise-grade innovative solutions
TM One reported a 0.5% growth in revenue from RM3.32 billion to RM3.34 billion in 2022, after several years of revenue decline amidst changing market dynamics and competitive landscape. This is attributed to higher recurring revenue and bespoke solutions deployment, as a trusted technology partner for large enterprises and the Government.
Utilisation of data centre space and power have also increased in 2022. The twin-core data centre of KVDC and IPDC have obtained Green Electricity Tariff (GET) from TNB as well as Green Building Index (GBI) and Leadership in Energy Environmental Design (LEED) certifications.
To strengthen its partner ecosystem, TM One launched ‘5G Sphere’ in October 2022 and today counts on over 70 leading technology and smart solution partners to accelerate the co-creation of 5G use-cases. On the other hand, Credence is advancing enterprise’s ‘cloud-first strategy’ as well as developing technologically-skilled professionals to accelerate cloud adoption in Malaysia.
TM Global positions Malaysia forward as a digital hub in the region
TM Global (rebranded from TM Wholesale) delivered a strong performance which made a significant contribution to the overall 2022 performance. TM Global’s revenue grew 7.8% from RM2.58 billion to RM2.78 billion, on the back of higher domestic data and international digital demand.
Domestically, TM Global is the preferred partner for High-Speed Broadband Access (HSBA) with the highest new installation in 4Q 2022. Advancing the country’s 5G rollout, almost 4,000 fiberisation sites were completed for the year.
Internationally, TM Global closed deals from US-based hyperscalers and Asia-Pacific carriers for its wholesale data centre solutions and international data services, elevating Malaysia as a trusted digital hub for the ASEAN region.
Commentary and Outlook from Dato’ Imri Mokhtar, TM Group Chief Executive Officer
“2022 was a milestone year for TM, tracking well in our transformation with growth across our business segments – Unifi, TM One and TM Global, and cost efficiency improvement. The stronger financial position places TM in a position to deliver better value and benefits for our stakeholders – customers, shareholders, partner ecosystem and community.
“TM is committed to continuously invest in shaping a Digital Malaysia through technology that empowers communities, businesses and Government – not just in our core business, but also in new, adjacent growth areas such as cloud, data centre, cybersecurity and platform-services.
“Sustainability will also be a domain we strive to make continuous progress. We have seen improvements in TM’s ESG ratings, for example the FTSE Russell ESG score rising from 3.1 to 3.6 in 2022 and also the CDP rating upgrade to ‘B’ from ‘C’ last year, both above the industry average. On governance, TM upholds transparency, disclosure and zero-tolerance to all forms of corruption, receiving the Gold Category in the recent Integrity, Governance and Anti-Corruption Award (AIGA) 2022.
“As part of TM’s next transformation to become a human-centred TechCo, we announced a reorganisation in December 2022 to streamline our core businesses and subsidiaries under a new entity named TM Technology Services Sdn Bhd (TM Tech). TM Tech is set to become the main operating entity of the Group with effect from 1 March 2023. This new corporate structure will be the catalyst for the next phase of TM’s transformation to reinforce its fixed-mobile convergence leadership, further improve operational efficiencies and deliver a more seamless customer experience.
“On the back of our current business momentum, there are new opportunities in the adjacent growth areas but also industry headwinds in terms of regulatory policy and higher technology costs. We are continuously assessing the impact of industry developments and will work closely with key stakeholders towards providing technology that is accessible to all in this digital era.”
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Yayasan TM provides B40 students greater access to online learning with free sim cards
2,000 unifi Mobile #BEBAS SIM cards worth RM500,000 distributed to eligible students from B40 families through schools, institutions and in support of the Government’s initiatives. Telekom Malaysia Berhad (TM) via its foundation, Yayasan TM (YTM) recently provided free internet access to school students from B40 families nationwide to facilitate their home-based teaching and learning (PDPR) during this Movement Control Order (MCO) period. The unifi Mobile #BEBAS 15GB LTE SIM cards which come with 1-year FREE internet access worth RM250 were distributed to a total of 2,000 students, bringing the total contribution value to RM500,000. These eligible students were selected by their respective schools with priorities given to B40 students who will sit for main examinations in 2021. Commenting on the initiative, Abdul Hamid Hashim, Director of YTM said, "Every student has the right to gain equal access to education. We hope our humble effort will fulfil the students' need for internet connectivity during these challenging times so they can fully participate in the online learning process. This is even more crucial as these students will sit for important examinations this year." "YTM will continue to support TM Group's role as the trusted partner in nation building, with the focus on education and human capital development towards producing the digital workforce to enable Digital Malaysia," he added. Under the initiative, 1,200 unifi Mobile #BEBAS 15GB LTE SIM cards worth RM300,000 were distributed nationwide through Yayasan Raja Muda Selangor (300 SIM cards), District Education Offices (PPD) (300 SIM cards) and 11 schools (600 SIM cards). The 11 schools are: SMK Abi, Perlis SMK Sri Muda, Pulau Pinang SMKA Sultan Azlan Shah, Perak SMK Jalan Reko, Selangor SMK Bandar Tun Razak, Kuala Lumpur SMK Cedung Jaya, Pahang SMK Alor Akar, Pahang SMK Datuk Bendahara, Melaka SMK Tun Perak, Johor SMK Tengku Mizan Zainal Abidin, Terengganu SMK Matang Jaya, Sarawak In addition, YTM also contributed another 800 SIM cards worth RM200,000 to low-income groups through TM's Corporate Social Responsibility (CSR) programmes in support of the Government initiatives such as Tabung CERDIK and #MYBAIKHATI. Tabung CERDIK is an initiative among the Government-Linked Companies (GLC) and the Government-Linked Investment Companies (GLIC) to help B40 students with PDPR during the pandemic. Meanwhile, #MYBAIKHATI is an initiative under the People and Economic Strategic Empowerment Programme (PEMERKASA) with a similar objective, that reaches out to students from underprivileged families through PINTAR Foundation and Pusat Internet Komuniti (PIK). Yayasan TM Future Leaders Scholarship for SPM school-leavers 2021 YTM is also calling for students who have just received their SPM 2020 results to apply for Yayasan TM Future Leaders Scholarship 2021. Successful applicants will have a chance to further their studies in TM's education arm, Multimedia University (MMU). The deadline for application is on 20 June 2021; so hurry, visit http://bit.ly/yayasantmscholarship to apply or scan the below QR code: Recipients of YTM scholarships will not only receive financial aid throughout their studies but will also be attending self-development programmes while they are still in university to prepare them in entering the career world. YTM also focuses on developing talents, especially in critical thinking for leaders and future-proof workforce readiness among students after graduation. Since its establishment in 1994, YTM has awarded education sponsorship to more than 15,000 qualified students of high academic calibre from low-income families and multi-ethnic background to pursue their studies at government schools and universities in Malaysia and abroad by offering grants, bursary, allowances or financial supports with a total sponsorship value of over RM568 million. This continues to be pursued by YTM, which focuses on nurturing the right talent that will ultimately contribute to the growth of the Company, industry and nation. YTM hope that this effort will encourage the students to focus on their study and bridge the digital gap. Besides education, YTM also embarks on sustainable efforts to preserve our local heritage and culture. For more information on YTM, visit www.tm.com.my.
Yayasan TM in collaboration with CENDANA transforms Muzium Telekom into engaging public digital arts space as part of art in the city's inaugural KLWKND
Through the marriage of technology and arts, Yayasan TM (YTM) continues its ongoing mission to preserve and celebrate the nation's arts, culture and heritage by transforming Muzium Telekom into an engaging public digital arts space, thanks to a ground-breaking collaboration with the Cultural Economy Development Agency (CENDANA). The collaboration is in support of the agency's Art In The City Programme, via its inaugural KLWKND event. KLWKND is a series of exciting events happening from 25 to 28 November 2021 created to make arts and culture accessible to all walks of life. KLWKND is set to transform downtown KL into a vibrant, truly immersive hub for creativity, arts and culture with various activities planned, all throughout the four (4) day programme including dance, music, opera, fashion, architecture, food, visual arts, design, creative products, traditional crafts, literature, history and more. In amongst the activities, YTM is honoured to be part of KLWKND placing Muzium Telekom as the centrepiece where art meets technology. The 93-year old heritage building will be transformed as SITULAH, a public digital arts showcase. Since 1994, the museum 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, showcasing 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. True to its collaborative spirit, YTM is working with CENDANA together with Joe Sidek Productions and other esteemed figures in the arts community including gifted visual and performing artists; whilst supporting local Food & Beverage businesses during the festival period and beyond. Muzium Telekom as SITULAH at KLWKND carries the exhibition theme of Traverse – Motions Through Time, a showcase of art and technology traversing without borders across time, mediums and cultures, in a vibrant interdependent ecosystem. As the visitors move through the museum, the artworks will guide them through an exploration into the past, present and future. Addressing the transformation of telecommunication institutions (TM Group, Muzium Telekom and MMU) in the age of digital evolution, contained within four (4) chapters: ENTER, INTER(IN)VENTION, RETROSPECT, and EXPERIENCE. 'Traverse' asks the visitors - how do these historical shifts in the mediation of our perception reflect our beliefs in the function of these institutes in our media society. At 'Traverse – Motions Through Time' while the artists are embracing the new form of art-making, expressing their ideas in a novel and ingenious ways, YTM take the opportunity to inform the public of the emerging creative practices by encouraging public participation, reflection and immersive engagement with the new content produced by MMU students, faculty and alumni. Besides digital and creative arts, TM R&D and TM ONE also showcase their latest technology and innovations. Today, the exhibition hosted a VVIP walkabout, graced by YB Datuk Zahidi Zainul Abidin, Deputy Minister of Communications and Multimedia, accompanied by Dato' Ir. Dr. Abdul Rahim Haji Daud, YTM Board of Trustees Member; Izlyn Ramli, Director of YTM; Dr. Sharlene Thiagarajah, Chief Executive Officer of TM Research & Development (TM R&D); Ainol Shaharina Sahar, Chief Executive Officer of Menara KL; Nor Azmi Mat Said, Chairman of MyCreative Ventures; Junady Nawawi, Group Chief Executive Officer of MyCreative Ventures; Izan Satrina Mohd Sallehuddin, Chief Executive Officer of CENDANA; and Joe Sidek, Director of KLWKND Festival. Holding on to the noble principle that no one gets left behind in this digital age, YTM is exhibiting the extraordinary visual talents of gifted artists in Malaysia for a charity sale during the event. Also taking part are visual artists from Persatuan Pelukis Negeri Perak who will be showcasing the Gutta Percha Trail Exhibition, the history of how a tree native to Malaysia played a crucial part in making the global submarine and telegraph network possible. With the exciting emergence of vast markets for non-fungible tokens (NFTs), YTM is also collaborating with DETIK, a unique Malaysian NFT project team who is organising the NFT-JAM Challenge where digital artists will meet up in the DETIK created Newsantara metaverse. This challenge aims to increase digital literacy reach so that creative communities can participate in the digital economy and earn potential income from their creative arts. This initiative will have presence in the Traverse exhibition and also feature some of the artwork displayed physically and digitally at Muzium Telekom. Commenting on the collaboration, Izlyn said, "As a purpose driven social impact foundation, YTM is committed to the Group's aspiration of enabling a Digital Malaysia via our three pillars of Education, Community and Nation-Building as well as Tourism, Culture and Heritage. The third pillar is dedicated to the sustainable development of Malaysian arts, culture and creative ventures. It is a necessary part for the preservation and celebration of our nation's heritage but also a key foundation to building our future. Creativity and innovation are not just confined to a certain sector; they are applicable across all aspects as well as being a key life skills. This must be nurtured and supported by all stakeholders for the betterment of society." "Malaysia has a wealth of talent, creativity and innovation but it needs that due attention and support to grow further and make an even greater mark in the world. How corporates can support the overall ecosystem should be considered from a strategic view – how they can enhance the scene with the core competencies they have so that the local arts industry creates greater impact and sustainability. YTM's role is in connecting the dots between the youth, talent and creativity to skills development, digital opportunities and collaborative partners; focusing on expanding traditional content and goods to digital platforms and solutions," she added. Meanwhile, as the main organiser, Izan Satrina said, "KLWKND is an integral part of Art In The City key to reach out, restart, revive and rebuild the economy for the arts and culture sector. To successfully implement such efforts, collaboration at all levels amongst the private and public sectors is needed to ensure involvement and ownership of the programme. Therefore, we are proud to partner with YTM and Joe Sidek Productions to build a greater impact for the sector and wrap up the year with a bang. Part of the arts includes us reflecting our history. The exhibition 'Traverse – Motions Through Time' complements this journey." 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YTM launches RM1.5 million social impact grant for NGOs and CSOs to run programmes for the community
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