25 May 2022
TM records steady performance in 1Q2022 with revenue & PATAMI up 2.9% & 4.4%; maintains focus on its growth strategies execution
In the second year of its Transformation, the Group is on track to achieve its 2022 market guidance, focusing on strengthening its core businesses and investing in new growth areas
Telekom Malaysia Berhad (TM) continued its growth trajectory and long-term business sustainability, recording a steady performance in its First Quarter ended 31 March 2022 as compared to the same period last year (YoY).
The Group's operating revenue increased by 2.9% to RM2.89 billion, compared to RM2.81 billion in the same quarter last year, driven primarily by increased demand for voice, Internet and multimedia. Despite rising competition to offer converged solutions among telco and other technology players, TM continued to deliver strong customer growth across its operations.
Capitalising on its core businesses and investing into new growth areas, TM further ramped up its transformation initiatives, delivering profit after tax and non-controlling interests (PATAMI) for the quarter at RM339.9 million or 4.4% higher than the RM325.5 million recorded in 1Q2021. The Group also recorded lower financial costs subsequent to the early redemption of its RM2.0 billion sukuk in March 2021, as well as lower foreign exchange translation losses on borrowings. The Group has applied the Cukai Makmur statutory tax rate accordingly for the current quarter.
Accelerating into the second year of its Transformation, TM brought forward its manpower optimisation to enable earlier realisation of expected benefits to the Group. This, along with foreign exchange impact on trade settlement has led to a 5.0% decrease in EBIT at RM560.4 million for 1Q2022 compared to RM589.7 million in the same quarter last year. Excluding these costs, the Group's underlying EBIT is 14.0% higher at RM650.2 million compared to RM570.5 million in 1Q 2021. Free Cash Flow is lower by 15.1% at RM658.8 million compared to RM775.7 million due to higher CAPEX as the Group continues to invest in business expansion and meeting customers' demands through technology refresh and network delivery, ensuring steady growth.
unifi: Double-digit revenue and subscriber growth
unifi continued its growth performance, recording revenue increase of 10.6% from RM1.25 billion to RM1.38 billion in the current quarter. Sustained by increasing demand from Internet, voice and sales of devices, with cumulative fixed Internet subscribers increasing by 17.5% against the corresponding quarter last year. unifi remains the largest growth contributor for the Group.
unifi will continue to maintain its leadership in fixed broadband and enhance its Fixed-Mobile Convergence (FMC), 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 (TMW): Higher revenue from increased demand for data services
TM Wholesale (TMW) also recorded a growth performance for 1Q2022, with revenue increasing by 1.2% from RM631.9 million in 1Q2021 to RM639.5 million, mainly contributed by higher revenue from voice and data services. This was underpinned by increasing demand from High-speed Broadband Access (HSBA) and higher International Voice and Data.
To date, TMW continues 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 continue to serve other OTTs and hyperscalers with connectivity and data centres, while regionally, TM Wholesale aspires to establish Malaysia as a digital hub for ASEAN via new submarine cables, enhanced data centre solutions and edge computing.
TM One: Renewed focus on growing B2B digital solutions market
TM One, the Group's enterprise and public sector arm, recorded a 7.4% decrease in revenue from RM925.2 million to RM856.8 million in 1Q2022 due to decline in data services revenue.
Strengthening and growing its B2B digital solutions, TM One has focused its efforts on high potential industry verticals, namely healthcare, manufacturing, education, oil & gas, banking, financial services & insurance (BFSI) and public sector. It has entered a partnership with Tune Protect and Huawei Malaysia that saw Tune Protect becoming the first organisation in Malaysia to host an insurance core system on public cloud (Cloud αEdge).
Commentary and Outlook from Imri Mokhtar, TM Group Chief Executive Officer
"With our economy and borders reopening, TM is powering Malaysia's journey on its road towards recovery, by ensuring the vision of an inclusive and extensive Digital Malaysia becomes a reality.
"Into the second year of our Transformation, we are focused on strengthening our core business while investing into new growth areas to meet customers' demands. In ensuring sustainability in the long run, we continue to grow our profitability to invest and seize opportunities arising from digital acceleration.
"One of these opportunities is in the exciting space of digital solutions and services for enterprises. Building on TM One's existing capability and relationships with enterprises and the public sector, we will deliver speed and agility through our new digital arm Credence: a corporate start-up led by technology leaders.
"unifi continues to better its fixed broadband and Fixed-Mobile Convergence value proposition to improve customer experience, while expanding our offerings to provide quality entertainment to customers at home or on-the-go.
"We have also achieved some key milestones in our sustainability efforts. TM One has successfully secured the Green Electricity Tariff from Tenaga Nasional Berhad for its data centres in Kuala Lumpur, Cyberjaya and Johor Bahru, contributing to a lower carbon footprint as the demand for cloud storage inevitably increases. This is in addition to the existing Green Building Index (GBI) certification earlier obtained for its core data centres. TM's broader ESG commitment also remains consistent with Malaysia's initiatives towards achieving net-zero Greenhouse Gas emission for the country by 2050.
"Meanwhile, TM Wholesale continues to establish Malaysia as a regional digital hub via new submarine cables, edge computing, data centres and supporting international connectivity. On the domestic front, TM Wholesale continues performing its role as the enabler for industry broadband, 4G and 5G network via fibre infrastructure that will transform the nation's connectivity capabilities."
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TM Committed For Success Of TVET Madani
Following the official launch of ‘Portal TVET Madani’ and the exchange of Memorandum of Collaboration with the Government today, TM has reaffirmed its commitment to the success of TVET Madani through its tailored vocational education modules along with RM3.5 million contribution for training facilities and scholarship. TM is presently in the final stage of discussions with several TVET institutions to form partnerships that will help transform these institutions into industry-ready technical development centres, towards enhancing the employability of their graduates. This will be achieved through the introduction of industry-relevant modules on fibre networks and digital skillsets, the certification of trainers aligning to industry standards, as well as examinations for student certification. The company plans to develop highly qualified and experienced instructors among its partner institutions to provide expert guidance, especially for B40 students, throughout their vocational journey, and to offer mentorship and support to help them succeed. TM also plans to equip its partner institutions with access to requisite facilities, relevant modern equipment and technology that will provide students with hands-on learning experience that prepares them for real-world fibre network and digital work. TM shall invest RM2.5 million to upgrade the facilities and equipment to selected TVET institutions and a further RM1 million in scholarships for students from the B40 group. As a start, this will facilitate employment opportunities for close to 400 graduates per year to work within its business eco-system. “TM is pleased to announce its commitment to the Government’s TVET Madani initiative through a comprehensive programme that will address the entire value chain. With our strong focus on skills development and industry-relevant training, TM is determined to transform lives and bridge the gap between education and employment for a digitally skilled future workforce,” said Datuk Imri Mokhtar, Group Chief Executive Officer of TM. “Across TM’s eco-system, we have over 430 fibre contractor partners, 880 vendors and over 90 TM 5G Sphere technology partners that will provide graduates close to 400 skilled job openings in the near future. “Vocational education will continue to play a crucial role in nurturing a skilled workforce and driving Malaysia’s digital economic growth. By equipping young Malaysians with the practical knowledge and skills needed in our telco and technology sector, we aim to empower the next generation of skilled talents to pursue meaningful careers and contribute to the development of communities and the nation,” he concluded.
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.
New exclusive through unifi TV: Lionsgate play treats Malaysian viewers with premium content
Starting July until 12th October 2022, all new and existing unifi TV Packs subscribers (Ultimate Pack, Varnam Plus Pack, Aneka Plus Pack and Ruby Plus Pack) can enjoy 90-day access to Lionsgate Play for free when they activate it through https://activate.unifi.com.my/lgp/. Introduced to Malaysian audiences in October last year, the international streaming platform offers unique blockbuster movies, premium originals, old favourites and binge-worthy TV shows that resonate with urban audiences between the ages of 25 to 45. From action, drama, and romance to thrillers and comedy, Lionsgate Play Malaysia in partnership with unifi TV offers several exclusive premium titles for the whole family. Anand Vijayan, TM’s Chief Commercial Officer and EVP, unifi said, “The inclusion of Lionsgate Play with unifi TV Packs provides comprehensive streaming entertainment for multi-generational audiences both at home and on the go. “With Malaysian households often made up of extended, multi-lingual families, this offering caters to the preferences of all members of a family – bringing something for everyone all within a single subscription.” “We are pleased to be the exclusive partner of Lionsgate Play in Malaysia and to bring more international content to our shores. Available via mobile app, web browser and unifi Plus Box, our subscribers can stream world-class content anytime, anywhere and on any smart device,” he added. Amit Dhanuka, EVP, Lionsgate said, “We are glad to further strengthen our relationship with unifi by amping up exclusive global entertainment on the Lionsgate Play platform in Malaysia. The upcoming titles stands testament to the bespoke content that we aim to provide Malaysian viewers. The current releases and our vast premium library encapsulate an array of genres including drama, action, thriller and more, that cater to local audience preferences.” Lionsgate Play releases new titles every Friday and provides highly curated playlists for audiences to choose from so they can ‘Play More and Browse Less’. This addresses one of the biggest challenges for busy working adults who often wonder what to watch next and may often spend more time browsing for content than actually enjoying it. unifi subscribers will now be able to enjoy these brand new exclusive titles, available only on Lionsgate Play:TV Series:Gaslit – A political thriller based on the Watergate Scandal involving US President Richard Nixon from 1972 to 1974, Gaslit tells the story from five months before the infamous break-in at the DNC headquarters. Nominated for four Emmy Awards in 2022, the series stars Hollywood’s leading names – Julia Roberts, Sean Penn, and Dan Stevens.The “Power” franchise – James "Ghost" St. Patrick is a wealthy New York nightclub owner who has it all, catering to the city's elite while also living a double life as a drug kingpin. Created by Courtney A. Kemp and executive producer Curtis “50 Cent” Jackson, this popular crime series has run for six seasons with three additional chapters – perfect for a crime-thriller binge fix.Becoming Elizabeth – the untold story of England’s most iconic Queen, long before she ascended the throne. Henry VIII’s death throws a young orphaned Elizabeth Tudor into the unpredictable and dangerous English court. As her 9-year-old brother is crowned king, Elizabeth can either become a pawn or player.Gomorrah – based on Robert Saviano’s best-selling novel of the same name, and directed by Marco D’Amore and Italian film director Claudio Cupellini, this acclaimed show explores organised crimes in Italy, putting audiences at the edge of their seat. The show stars Marco D'Amore, Salvatore Esposito, Arturo Muselli, Ivana Lotito, and Andrea Di Maria.Movies:Corrective Measures – a sci-fi movie set in the world's most dangerous maximum-security penitentiary, tensions among inmates and staff heighten, leading to anarchy. The gripping story stars Bruce Willis and Michael Rooker, and is written, produced and directed by Sean O'Reilly based on the graphic novel by Grant Chastain. Vendetta – when his daughter is brutally murdered, William Duncan takes the law into his own hands. After killing the street thug directly responsible for her death, he finds himself in a war with the thug's brother and his gang, who are equally hell-bent on getting revenge for their fallen member. Another Bruce Willis film, the movie also stars Thomas Jane and Theo Rossi.Jungle Cry – a riveting sports drama based on the real-life story of Indian rugby coach Rudraksh Jena of Bhubaneswar's Kalinga Institute of Social Sciences (KISS), who guided a team of 12 rural Odisha boys to a historic victory in the Junior Rugby World Cup in England in 2007. Starring Abhay Deol and Emily Shah, the film is helmed by Sagar Ballary. “With curated content from around the world, Lionsgate Play offers great value entertainment to Malaysian audiences, providing a variety of choices that the whole family can enjoy. Coupled with other unifi TV Packs, we are bringing streaming services to the next level – creating a new entertainment experience for customers of all ages,” concluded Anand.
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