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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TM restores 85% of flood-impacted services and ramps up outreach to affected customers, communities and employees
Following up from the statement issued by Telekom Malaysia Berhad (TM) on December 19, 2021, we have since accelerated our focus on supporting the escalating needs of our customers, communities and employees impacted by the tragic event of the floods. As of today, 85% or 84,274 of our affected customers are now back online thanks to the exhaustive efforts made by TM’s engineering and support teams, enabling the successful restoration of our core services. We will continue this rigorous service restoration exercise to ensure the remainder of our customers are able to be connected soonest. For our affected customers, we have allocated: RM13 million to replace for free, damaged Customer Premise Equipment (CPE) and network components; A waiver of two (2) weeks subscription from customer bill estimated at RM5 million; and Credit term extension to 60 days to further ease the financial burden of customers. In the affected regions, TM has restored a majority of its impacted primary network sites. The flood had impacted more than 15 network sites and hill stations across four (4) states, due to power outages and in some areas, high water levels and severe road conditions, preventing our network team from accessing these locations. As part of the pledges made by members of the GLC/GLIC Disaster Response Network (GDRN) currently at RM58.4 million, the TM Board has allocated RM2 million in aid of the recovery, rebuilding and flood relief efforts. TM, via Yayasan TM (YTM) is also joint chair and secretariat for GDRN. Together with YTM, partner NGOs and the Malaysian Armed and rescue Forces, we have also distributed over 3,500 care packs consisting of hot meals, dry rations and hygiene items, and COVID-19 self-test kits provided by Pharmaniaga to the flood-stricken areas in Klang Valley and Hulu Langat. Our committed team of over 260 staff volunteers (TM Reaching Out Volunteers – TM ROVers) are currently assisting communities with the daunting task of cleaning up their homes, including 830 of our own employees whose premises have been damaged. TM will also ensure compensation via financial aid to the affected staffs, and the provision of temporary shelter at the MMU campus. Imri Mokhtar, Group Chief Executive Officer of TM said, “The immense challenges faced by fellow Malaysians during this unfortunate situation calls for corporations and businesses to come together to respond swiftly to alleviate the struggles of many, leveraging on our resources and means where possible.” “As co-lead of the GDRN, TM is grateful to serve alongside its members in addressing the needs of those trying to rebuild their lives in the aftermath. The worse may not be over, and TM is mindful of our role to support our customers, communities and employees as we recover as a nation.” “We appreciate the patience shown by all as we work hard to get our networks back up and running and ensure uninterrupted services in face of power shutdown and damaged equipment in some of our locations,” he added. TM will continue to play its aid and recovery efforts towards community wellbeing. More regular update is available on TM social media channels or visit our website https://unifi.com.my/unifi-alerts for updates.
Orbix International School takes safety seriously by adopting TM R&D’s EWAR
TM R&D assists Orbix International School in adhering to the Standard Operating Procedures (SOPs) with deployment of EWAR towards curbing the spread of COVID-19 virus. Telekom Malaysia Berhad (TM), through its innovation arm, TM Research & Development (TM R&D), further promotes the adoption of digital solutions in the education sector by deploying its Early Warning, Alert & Response or "EWAR" at Orbix International School (Orbix), a private school in Muar, Johor. EWAR is an Artificial Intelligence (A.I) driven contactless temperature screening solution internally-developed by TM R&D. In an effort to digitalise the Standard Operating Procedures (SOPs) outlined for schools, Orbix has installed EWAR Compact, one (1) of EWAR's product categories, within their premise to better facilitate the temperature screenings of their students, teachers and visitors towards curbing the spread of COVID-19 virus. Commenting on the initiative, Dr. Sharlene Thiagarajah, Chief Executive Officer, TM R&D said, "We are honoured to be working with an educational institution such as Orbix to deploy our cost-effective and innovative solution in response to the required safety protocols. This illustrates the flexibility and readiness of education vertical in adapting to the new normal. At TM R&D, we are ever ready to assist businesses and organisations to get back on their feet safely." "We truly believe that deploying the EWAR Compact at schools or any educational institutions can provide students and teachers with a near-normal return to school experience as possible. We hope that this effort can encourage other schools and educational institutions to install EWAR Compact and simplify the adoption of the new SOPs in our battle against COVID-19." EWAR Compact is an AI-driven, one-on-one contactless thermal screening solution with a high accuracy of +/- 0.3℃, fast (~1sec) detection and voice prompt. In addition, AI-based facial recognition capabilities can also be applied with the solution. With EWAR Compact, students and teachers can go to schools with peace of mind, knowing that their schools are using the most effective technology available to safeguard their health. "Besides that, we are delighted to see more schools adopting digital solutions as this will expose teachers and students on how technology can help improve lives through safety. The exposure to EWAR Compact will also help students to experience digitalisation in action first-hand, and witness the benefits of digital adoption even before they enter the workforce. We hope this will help groom an industry-forward talent pool which will subsequently drive the nation's digital aspiration, befitting TM Group's role of the enabler of Digital Malaysia," she added. "Deploying EWAR Compact was a vital step for us as we were looking for the most effective technology available in safeguarding the health of our students and teachers. So far, we have received positive feedback on how EWAR Compact has enhanced the efficiency of temperature taking while simultaneously improving social distancing," said Govindan Nair, Chief Marketing Officer of Orbix Education. "The students especially have shared that they like how interactive the solution is. As we are firmly committed to ensuring the health and safety of our students, it is also important for us to expose our students to how innovation results in real-world solutions," he added. Back in July, TM R&D has successfully installed EWAR Compact at 12 selected schools under the purview of Bangsar / Pudu District Education Office (PPDBP) namely Victoria Institution, Sekolah Menengah Kebangsaan (SMK) Dato' Lokman, SMK Seri Saujana, SMK Desa Petaling, SMK Cochrane, SMK Taman Maluri, SMK Alam Damai, SMK Bukit Jalil, SMK Dato' Onn, SMK (P) Bandaraya, SMK Convent Jalan Peel and SMK Seri Permaisuri. During the early stages of the Movement Control Order (MCO), TM R&D has introduced two (2) main product categories under EWAR, namely EWAR Crowd and EWAR Compact as part of its contribution in the fight against COVID-19. The solution comes with four (4) main capabilities that close the critical loop from detection to containment. It is non-intrusive and has use-cases for both crowd and one-on-one scanning, respectively. EWAR Crowd comes with a dual-camera (thermal and optical) and is designed to conduct a rapid body temperature screening of approximately 10-15 individuals per second simultaneously at high traffic areas. It can easily be deployed in locations with mass traffic flow such as offices, shopping complexes, transportation hubs, universities, schools, tourist attractions, airports, immigration centres, and hospitals. EWAR Compact on the other hand is more suitable for a one-on-one contactless thermal screening. This can eliminate the need of the hand-held temperature taking, which can subsequently improve social distancing and minimise long queues. Both EWAR models have been installed at more than 150 sites across several industry verticals and have gone regional to help keep businesses safe beyond Malaysian shores. The solutions have been installed at the quarantine and treatment centre for COVID-19 cases at Malaysia Agro Exposition Park (MAEPS) in Serdang, large and mid-size office lobbies, hotels, Kuala Lumpur City Hall (DBKL) payment counters, various sales galleries and Gamuda Land construction sites, just to name a few. TM R&D has been growing from strength to strength since 2016, winning seven (7) globally recognised awards over the last two (2) years. Our innovations cut across multiple verticals such as the Smart Retail Analytics and Smart Safety Helmet, all developed internally by local talents in TM R&D. As the organisation continues to expand beyond connectivity and into new value-added digital and smarter platforms, its role in TM has become more prominent and exciting. For more information about TM R&D and its products and services, please log on to www.tmrnd.com.my. Follow us on LinkedIn (TM Research & Development) for more news and updates.
Netflix Is Now On unifi TV; Bringing Premium Entertainment To Unifi Customers
Unifi, the only quad-play service Malaysian telco for fixed voice and broadband, mobile and lifestyle services, today announced a new Unifi TV partnership with one of the world’s leading entertainment services, Netflix. This partnership will provide Malaysians access to must-watch entertainment and add greater value through Unifi TV’s premium content offerings. From 23 June, Unifi customers will have access to Netflix’s array of movies such as Extraction 2, starring Chris Hemsworth, Heart of Stone starring Gal Gadot, and all-time blockbuster hits like Red Notice and Glass Onion: A Knives Out Mystery. Customers can also enjoy popular TV series including Wednesday, The Witcher, Black Mirror, and Korean dramas like The Glory and Black Knight. This includes a three (3) months’ promotion starting 23 June where customers will be able to add on Netflix to their existing subscription by upgrading to the new Unifi TV Ultimate Packs at a special price. Anand Vijayan, TM’s Chief Commercial Officer and Executive Vice President of Unifi said, “We are excited to bring on board one of the biggest and most popular streaming platforms globally to Unifi TV. Adding this feather to our lifestyle services and converged solutions cap is part of Unifi’s ongoing expansion plans for 2023, as we continue to offer customisable, and best value-for-money solutions that provide something for everyone.” “The addition of Netflix opens up a host of popular and diverse entertainment selections to our lifestyle services, and to celebrate this partnership we will provide customers one of the best bundle deals through Unifi’s all-in-one subscription. This special three-month promotion is our way of sharing this latest milestone with our customers, with Netflix taking us to the next stage of our home and on-the-go entertainment offerings,” he shared. Tizar Patria, Business Development Manager for Indonesia, Malaysia, and Thailand at Netflix, said, “At Netflix, we believe that great stories can come from anywhere and be loved everywhere, and we are delighted that our partnership with Unifi TV will bring greater access to must-watch films and shows from our catalogue to more Malaysians.” The partnership serves as the latest addition to Unifi TV’s existing offerings, which include a whopping 71 premium channels and 17 app partners such as Disney+ Hotstar, Viu, WeTV and Lionsgate Play. This collectively makes up Malaysia’s largest selection of streaming apps available over a single platform. To subscribe, Unifi customers can add Netflix to their new or existing plans at all Unifi Stores or call 100 for subscription packages at promotional prices. This includes the limited-time offering of Unifi TV’s newest premium TV pack, Ultimate Plus Pack at RM 69.90 and Ultimate Max Pack at RM 89.90, an add-on from as low as RM 9.90 for full access to all Netflix services from the previous Unifi TV Ultimate Pack during the three-month promotion. Customers can also add on Netflix with subscriptions to Unifi’s broadband only packages. To find out more about the Unifi TV x Netflix bundles, visit https://unifi.com.my/tv.
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