26 May 2022
TM aspires towards a human-centred technology company in delivering digital Malaysia following successful 37th AGM
2021 a milestone first-year of the New TM Transformation
Telekom Malaysia Berhad ("TM" or "the Group") today successfully concluded its 37th Annual General Meeting, with all 13 Ordinary Resolutions and one Special Resolution tabled duly approved by its shareholders.
The Meeting was conducted online for a third consecutive year to allow maximum flexibility for engagement with shareholders. The event saw over 1,000 shareholders attending virtually.
Hosting the proceedings for the first time, Tan Sri Mohammed Azlan Hashim, Chairman of TM's Board of Directors said, "2021 has been a milestone first-year in our New TM Transformation, with the Group setting a solid foundation as a growth-oriented PLC investing for optimum long-term returns for its shareholders, while also continuing its nation-building efforts to realise a truly Digital Malaysia."
Alongside the Board of Directors, key senior leaders including Imri Mokhtar, Managing Director and Group Chief Executive Officer; and Razidan Ghazalli, Group Chief Financial Officer were also in attendance to offer insights into the 2021 Audited Financial Statements and the Group's moving forward business priorities.
"In 2022, we aim to continue growing our operating revenue by strengthening our core business momentum to improve profitability, enabling us to invest for future growth. Our first quarter of 2022 recorded steady revenue growth at RM2.89 billion, an increase of 2.9% from this same period last year, despite heightened competition. We also ramped up our transformation initiatives and delivered profit after tax and non-controlling interests (PATAMI) at RM339.9 million, or 4.4% higher. We will continue to optimise cost and improve productivity in our effort to raise EBIT to more than RM1.8 billion," Imri explained.
He added: "We are intensifying our efforts in the remaining seven months to deliver the next chapter of our Transformation. We will look at a total CAPEX spend between 14-18 per cent of revenue, with spending primarily focused on network expansion and modernisation together with enhancing customer experience."
unifi will continue to maintain its leadership in fixed broadband and enhance its Fixed-Mobile Convergence (FMC) proposition, enriched with TV and streaming content. This reflects its commitment to improve its FMC customer experience with better and seamless service. unifi will also grow its SME digital platform as a one-stop service centre for solutions catering especially to SMEs nationwide.
TM Wholesale will continue to enable industry broadband and 4G network via its fibre infrastructure, with the ongoing 5G rollout further strengthening that role. On the international front, it will further serve other OTTs and hyperscalers with connectivity and data centres, moving towards establishing Malaysia as a digital hub for ASEAN via new submarine cables, enhanced data centre solutions, and edge computing.
TM One, as the sole home-based cloud service provider will also offer end-to-end managed services with robust connectivity and infrastructure. In addition to ensuring data sovereignty and security for the MyGovCloud initiative, TM One will be ramping up its data centres to support the nation's Cloud First agenda.
Recognising that the future is digital, TM has also invested in strengthening its digital services through Credence, a new arm that will focus on expanding the capabilities of enterprises in their digital transformation journey. Helmed by senior leaders from the technology sector, this new business will serve existing TM customers as an end-to-end Cloud and Services solution partner, offering services from tech infrastructure to business insights, IT landscape migration, SaaS, managed services as well as analytics.
While improving connectivity and digitisation solutions to enable a better Malaysia, the human factor remains the true centre of TM's growth agenda.
Imri concluded: "Our aspiration is to evolve towards becoming a human-centred technology company. From our beginnings as just a fixed telco, we are now a converged telco providing voice, internet and data through both fixed and mobile technology, which further delivers content, data centre and cloud services. The next step is to evolve from delivering converged connectivity into a human-centred technology company – delivering lifestyle and business solutions for our customers with innovative digital technology and applications.
"In a market where telcos and other digital players now have a play in almost every solution, customer experience will be the true differentiator in attracting and retaining customers."
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TM turns in solid 1Q2021 performance; strong start to transformation programme
The Group posted revenue of RM2.81 billion, 9.9% higher from RM2.56 billion in 1Q2020. A Solid 1Q2021 Performance Telekom Malaysia Berhad (TM) today reported its financial results for the first quarter ended 31 March 2021. The Group's revenue increased by 9.9% to RM2.81 billion compared to RM2.56 billion in the same quarter last year with an increase in revenue across all business lines – unifi, TM ONE and TM WHOLESALE. Ongoing cost improvement initiatives continued to show results with total operating cost ratios (% cost to revenue) improving from 88.1% last year to 79.7%, supporting both revenue growth whilst optimising cost efficiency across direct costs, manpower, other operating costs and depreciation and amortisation. Group EBIT for 1Q2021 rose by 80.8% YoY from RM326.1 million in 1Q2020 to RM589.7 million, on the back of higher revenue and better operating costs efficiency. This subsequently led to a strong 113.4% YoY growth in Group PATAMI from RM152.5 million last year to RM325.5 million. In 1Q2021, the Company invested 8.8% of revenue in capex amounting to RM247.0 million as it continued to modernise its network and technology platforms towards delivering current and future solutions for customers. Of the amount invested, 69% was for network access including JENDELA (fibre broadband expansion), 12% for core network, and the balance 19% for support systems. TM expects to meet the 2021 market guidance announced in February with revenue growth to be flat or single digit growth, EBIT to be more than RM1.6 billion and CAPEX guidance to be between 14% to 18% of revenue. 1Q2021 Business Highlights: A Strong Start to the New TM Transformation Programme The 'New TM' Transformation Programme (2021-2023), anchored on 40+ Value Programmes focusing on customer experience, revenue, cost efficiency and a future proof organisation, has seen a strong start with quarterly growth across all lines of business and improved operations. unifi maintains its strong momentum and convergence leadership with 11.9% YoY growth in fixed broadband customers to 2.44 million, with the highest ever quarterly fixed broadband customers net additions of 110k, driven by growth of unifi customer base. Whilst the MCO since 2020 has increased demand for fixed broadband, unifi has successfully converted this demand with its compelling unifi convergence proposition under the #unifiyourworld campaign, providing the best customer value for broadband, mobile and content via unifi Plus Box. This growth was also supported by the higher number of ports deployed and wider fiber network roll-out under the JENDELA programme, which TM surpassed its 1Q targets achieving 141% of its commitment. TM is also expanding the pool of network contractors to increase the capacity of its fiber expansion programme in the coming quarters. unifi also focused on continuously improving customer experience and accelerated its Streamyx migration programme in Q1 2021 to enable more customers enjoy higher speed broadband. WiFi optimisation is also an important part of getting the best internet experience, hence unifi also continues to promote the take up of Mesh WiFi to its new and existing customers. Meanwhile, its IT systems are also undergoing enhancements to provide better customer experience and cost optimisation via simplification and consolidation of platforms. Notably, unifi rolled out a new order management system that reduces order processing time by more than 60%, to improve customer experience across its sales touchpoints. TM ONE continues to enable the digital transformation journey of enterprise and public sector customers with a comprehensive suite of connectivity, data centre, Cloud, cybersecurity and smart solutions. After cautious spending in 2020, customers are now accelerating their digitalisation, and this has translated into new sales and contract renewals to provide comprehensive digital solutions, especially in key verticals such as oil and gas, the banking and financial services industry (BFSI) as well as from higher broadcast, ICT and customer projects. There is also greater traction seen for Cloud services from the Enterprise segment; whilst discussions are ongoing to support public sector data migration, as the Government's sole local Cloud Service Provider (CSP) under the MyDIGITAL blueprint. TM WHOLESALE is the preferred network infrastructure provider supporting the technology industry and is positioning Malaysia as a digital hub with strong demand from domestic and international telco and technology operators; including hyperscalers. On the home front, TM as the leading infrastructure partner for High Speed Broadband wholesale services, leveraged its superior network nationwide to support the industry's broadband growth. It is also the primary mobile backhaul infrastructure provider for the industry, which saw growth in coverage and capacity through dynamic offerings of these services. TM also recorded growth in terms of its Wholesale Data Services. Towards establishing Malaysia as an ASEAN digital hub, TM strengthened its partnership ecosystem with international carriers and hyperscalers registering higher revenue for International Data Services as compared to last year. TM expanded its portfolio of data centre customers with more major Asian and US hyperscalers co-locating at the nation's only Tier III twin core data centres at Iskandar Puteri (IPDC) and Klang Valley (KVDC). Its wholesale Content Delivery Network (CDN) services also expanded its digital media delivery network ecosystem with more new customers in 1Q2021. TM remains committed to sustainable growth, with continued emphasis on Environmental, Social and Governance (ESG), maintaining its strong track record as one of the 75 Bursa companies on the FTSE4Good Bursa Malaysia Index, with the full rating of 4/4. Environment: TM complies with the Environmental Quality Act 1974, and has reduced its annual carbon emissions by 13%; integrating sustainable practices in all areas of operations. Social: TM ensures the safety and health of customers and Warga TM with special working arrangements implemented and enhanced Standard Operating Procedures (SOPs) towards business and customer service continuity. TM also supports the nation and communities in need through connectivity initiatives such as Jaringan Prihatin, CERDIK, MYBAIKHATI and other humanitarian aid. Governance: Committed to uncompromising integrity, TM continuously assesses the Group's corruption risk and ensures its corruption mitigation practices are independently certified. Imri Mokhtar, Managing Director & Group Chief Executive Officer commented: "We began 2021 with a positive momentum and a strong start to our 'New TM' 2021-2023 Transformation Programme. We are pleased to report a solid year-on-year performance despite these unprecedented times. We delivered good growth with our revenue up 9.9% YoY to RM2.81 billion, contributed by strong demand from our unifi, TM ONE and TM WHOLESALE customers. Coupled with our continuous cost efficiency initiatives, EBIT significantly improved 80.8% YoY to RM589.7 million and PATAMI doubled to RM325.5 million as compared to the first quarter of 2020. Under the 40+ Value Programmes, TM is reshaping our workforce into a stronger execution engine, embracing a more agile work culture with future-ready skills; focused on growing with our customers towards a more digital society, businesses, public sector services and technology industry. TM reiterates our leading role in accelerating Digital Malaysia through digital connectivity, digital infrastructure and a digital workforce. As an essential enabler, we are ready to play a leading role in the execution of both, the JENDELA implementation plan and the realisation of the Malaysia Digital Economy Blueprint (MyDIGITAL); leveraging on our comprehensive connectivity, digital infrastructure and innovative solutions. We are also committed towards sustainable growth, with increased emphasis on ESG by our Board and management. We remain focused on our ESG sustainability journey. I am pleased to update that we maintained our track record as one of the 75 Bursa companies on the FTSE4Good Bursa Malaysia Index, with a full rating of 4/4. With this encouraging set of overall results, we are on track to meet our 2021 market guidance and look forward to delivering greater customer experience and shareholder value with our New TM Transformation Programme."
TM ONE NAMED FROST & SULLIVAN MALAYSIAN CYBERSECURTY SERVICES COMPANY OF THE YEAR
TM One, the enterprise and government sector solutions arm of Telekom Malaysia Berhad (“TM”), was named the Frost & Sullivan Malaysian Cybersecurity Services Company of the Year for 2022. The award was decided based on a series of detailed evaluations following Frost & Sullivan’s best practices criteria, in which TM One excelled as a service partner in addressing Malaysia’s enterprise and government sector cybersecurity needs. “TM One is recognised based on its extensive cybersecurity capabilities and resources. With a full suite of cybersecurity services and infrastructure, coupled with a deep understanding of the Malaysian market landscape, TM One continuously upholds a strong reputation of effectively addressing its customers’ security needs,” said Anh Tien Vu, Industry Principal, Global Cybersecurity Research Team at Frost & Sullivan. Shazurawati Abd Karim, Executive Vice President, TM One, said: “We are honoured to receive the Frost & Sullivan Malaysian Cybersecurity Services Company of the Year Award. With cybersecurity emerging as a top priority for organisations in their transformation journey, we are committed to growing our end-to-end solutions so that we can provide our customers digital freedom and peace of mind as they expand their businesses in the digital space. Understanding their unique business needs, we work with organisations to assess their cybersecurity capabilities and provide advisory services through our dedicated TM One Cyber Defense Centre (CYDEC) – helping them make the right choices to respond to cyber threats more effectively.” Addressing Cybersecurity Gaps among Enterprises and Public Sector More Malaysian organisations are now investing heavily in cybersecurity. As they become increasingly present and vulnerable in the digital space, organisations need to adopt a stronger security posture in their information technology, operational technology, and cloud infrastructure capabilities. Shazurawati said, “One of the key challenges for organisations is the shortage of in-house security expertise, professionals, and tools, requiring them to outsource their security operations. By working closely with customers to assess their security posture, technology maturity, and business needs, TM One offers customised solutions for managed security services, consultation and advisory, and other value-added services to help them navigate today’s complex technological landscape.” TM One is also strengthening the public sector’s cybersecurity, working alongside the Malaysian Government to enhance digital connectivity and smart innovations for cities and industries to propel the nation towards becoming a digital economy. In addition to connectivity, TM One continues to invest in local data centres, digital infrastructure and services, ensuring data sovereignty remains within Malaysian borders while bringing global best practices to the nation’s public sector. Its investments to strengthen Malaysia’s Critical National Information Infrastructure (CNII) is one of its efforts to protect government and public data, with its cybersecurity solutions developed in compliance with Bank Negara Malaysia’s Risk Management in Technology (RMiT) policy and the Personal Data Protection Act 2010 (PDPA). Anh Tien Vu said, “One consideration that stood out for Frost and Sullivan was that TM One has earned endorsements and collaborations from local cyber authorities, such as Cybersecurity Malaysia and the National Cyber Security Agency (NACSA) of Malaysia through its implementation of best practices, and world-class infrastructure backed by experts. Frost & Sullivan commends TM One’s steadfast efforts in providing cybersecurity services that exemplify this implementation of best practices, which have benefited customers and communities tremendously.” “On top of developing our own end-to-end solutions, TM One continues to strengthen its partnership ecosystem, collaborating with companies from various security domains to diversify its offerings and coverage. This includes FNS Value Co. Limited, the sole distributor of its Blockchain Secure Authentication solution in Malaysia, which helps secure digital transactions and online credentials, and Telefónica Tech – a global leader in cybersecurity, Cloud and IoT, as a partner in delivering Digital Risk Protection,” explained Shazurawati. “Our efforts to expand our cybersecurity services and to provide customers with cutting-edge security reflect our commitment to tackling today’s growing cybersecurity concerns. With next-gen technologies such as 5G opening up both new opportunities and threats, TM One is poised as the enabler for organisations’ next advantage and security, today and tomorrow,” she concluded.
TM Further Accelerates Its Sustainable Development
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