25 Feb 2022
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% |
YOU MAY ALSO LIKE
TM Integrity Day 2023 Emphasises “Uncompromising Integrity” as Cornerstone of Corporate Governance
KUALA LUMPUR, 2 November 2023 – TM reaffirms its commitment to integrity, corporate governance, and ethical business practices as it celebrates TM Integrity Day 2023 (TMID). This annual event serves as a platform to reinforce its core values among Warga TM, business partners and its supply chain ecosystem. The theme ‘Uncompromising Integrity’ was chosen to underscore TM's dedication to upholding the highest standards of compliance and ethics in all aspects of its operations. Through these principles, TM continues to strengthen its corporate governance and culture of responsible business conduct. The event featured a forum titled “Strengthening Integrity & Governance” with insights from Tan Sri Abu Kassim Bin Mohamed, Chairman of the Advisory Board of the National Centre for Financial Crime Prevention, and Datuk Dr. Anis Yusal Bin Yusoff, Director of the Centre for Leadership and Professional Development (UM Lead). The forum was moderated by Nik Azli Bin Abu Zahar, Group General Counsel of TM. In addition to the forum, various programmes were organised, including a theatre performance by Akademi Seni Budaya dan Warisan Kebangsaan (ASWARA). Dato’ Zainal Abidin Bin Putih, Chairman of TM, emphasised in his launching speech, “High integrity and efficient governance form the bedrock of any organisation and are essential for building trust among stakeholders. Key principles such as transparency, accountability, fairness, and responsibility in delivering services to customers must be upheld to ensure the sustainability of the organisation.” He added, “Beyond qualifications and skills, another essential attribute that every individual should possess is Integrity. The absence of these qualities will not only harm the individual but also have a detrimental impact on the company's performance and reputation”. The event was broadcasted live to facilitate broader participation from Warga TM and TM’s business partners virtually. TM continues to foster a culture of integrity, accountability, and ethical conduct, ensuring a more sustainable future for all stakeholders.
Yayasan TM, Teach For Malaysia and Enuma, inc. Bring “Sekolah Enuma” digital learning application to young students in malaysia
Offline learning tool a critical resource for parents and teachers in supporting the children especially those from underserved communities with limited access to the internet, computer devices and appropriate learning materials The pandemic and the ensuing movement restrictions have been very disruptive to students, in particular those forced to rely on online lessons but face limited access to the necessary tools and connectivity. To help address these learning challenges faced by over a million Malaysian students aged five (5) to eight (8), Yayasan TM (YTM), the foundation arm of Telekom Malaysia Berhad (TM), is collaborating with Teach For Malaysia, a not-for-profit advocate for education and Enuma, Inc., a global company focused on digital learning programmes, to bring the Enuma School digital learning application to Malaysia. In this collaboration, YTM is sponsoring the field test of the localised version of the app, which will be known as Sekolah Enuma Malaysia, to 600 students in various communities in Sarawak, Sabah and Kuala Lumpur. Enuma School has been commercially successful in the B2C markets in the US, Korea, Japan, China and Indonesia. Its exceptional Kitkit School programme, winner of the prestigious USD15 million Global Learning XPRIZE (2019), has been used in over 50 countries through schools serving children in under-resourced environments. All its learning activities are carefully and meticulously mapped to specific learning objectives and support individualised learning paths depending on the current level of each student, so students can learn by themselves. This platform will greatly complement the current home-based teaching and learning (PdPR). Sekolah Enuma Malaysia was officially launched in a ceremony by Mohd Najib Ab Rahman, Director of Jabatan Pendidikan Wilayah Persekutuan Kuala Lumpur together with Izlyn Ramli, Director of YTM; and Sooinn Lee, Chief Executive Officer and Founder of Enuma, Inc. This virtual session was also joined by Chan Soon Seng, Chief Executive Officer of Teach For Malaysia. Commenting on this project, Izlyn Ramli said, "This collaboration is a natural extension of YTM's existing strong support for the education ecosystem especially in promoting digital learning among pre- and primary school students. It is also aligned with Telekom Malaysia Berhad's (TM) aspiration to enable Digital Malaysia while supporting the government's agenda in digital education transformation. This offline, game-based digital application will encourage and ease the learning of Bahasa Malaysia, English and Mathematics in a fun and interactive learning process". The Sekolah Enuma field test began on 28 March 2022, involving 600 students, the majority of whom comes from the B40 communities particularly in Kuala Lumpur, indigenous communities in Sarawak and stateless communities in Sabah. Meanwhile, Chan Soon Seng said that Teach For Malaysia is thrilled to work with YTM and Enuma to address the learning challenges faced by students, including those from underserved communities with limited access to internet, devices and appropriate learning materials. "We hope Sekolah Enuma will significantly help to close the equity gap in learning across all segments of society and increase each student's learning outcomes to meet the Ministry of Education's (MOE) goal for full basic literacy and numeracy by standard three," he added. Learning with the Sekolah Enuma app will facilitate and individualise the learning path for each student through in-app placement tests and check-in quizzes, so students learn at a level and pace that is just right for them. They learn through playing child-friendly games developed by seasoned designers which make learning fun, engaging, and self-directed. The app enables each student to learn independently and be the driver of their own learning journey. The standardised content, developed by global and local education experts, is aligned with the MOE curriculum. Accompanying the app is a web-based Learning Management System (LMS) that allows teachers and administrators to manage and track the performance and progress of the students using the app. "Our app contains thousands of learning activities, dozens of games, hundreds of child-friendly e-books and videos. Many are tailor-made based on Malaysian culture and values. It works on Android tablets and smartphones and does not require an internet connection once the app is downloaded," explained Enuma's Sooinn Lee. "Sekolah Enuma is particularly suitable to be used in remote locations and communities where there is a shortage of trained teachers as well as limited internet connectivity." Corporate partners and foundations keen to support the second phase of Sekolah Enuma, which is expected to be launched in Q4 2022, are encouraged to contact Yayasan TM, Teach For Malaysia, or Enuma, Inc. Schools and communities interested in participating in this next phase are also encouraged to do the same. For more information on Sekolah Enuma, please visit www.sekolahenuma.com
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.
NEWSLETTER
Just drop your details and stay updated with the world of Telekom Malaysia. We promise – no spam!