Telekom Malaysia (TM) investor relations material

Executive summary

• Revenue grew 2.9% year-over-year to RM2.93 billion, with growth across B2C, B2B, and C2C segments, led by B2C subscriber gains and C2C international connectivity.

• Underlying EBIT increased 6.3% year-over-year to RM593.3 million, and underlying PATAMI rose 9.3% to RM436.3 million, reflecting core profitability; reported EBIT and PATAMI declined due to a one-off RM127.3 million 5G MOCN write-down.

• A quarterly interim dividend of 6.5 sen per share was declared, totaling RM249.5 million and representing a 78% payout of reported PATAMI, above the revised minimum 75% policy.

• The company maintains a resilient balance sheet, strong execution momentum, and marked its 80th anniversary.

Financial highlights

• Revenue: RM2,934.7 million, up 2.9% year-over-year; underlying EBIT: RM593.3 million, up 6.3% YoY; reported EBIT: RM430.6 million, down 21.8% YoY due to the 5G write-down.

• Underlying PATAMI: RM436.3 million, up 9.3% YoY; reported PATAMI: RM321.5 million, down 19.9% YoY.

• Free cash flow at RM504.1 million, with cash and equivalents at RM1,651.8 million at quarter-end.

• Gross debt to EBITDA improved to 1.0x from 1.3x a year ago; net debt/EBITDA at 0.56x.

• Operating cash flow nearly doubled year-over-year to RM216.6 million, driven by working capital improvements.

Outlook and guidance

• Maintains a measured outlook amid uncertainties, focused on delivering FY2026 guidance for revenue, EBIT, and CAPEX.

• CAPEX/revenue expected to reach 18%-20% by 2H 2026.

• Continued demand for digital connectivity, infrastructure, and wholesale services supports a forward-looking outlook.