Telekom Malaysia (TM) Q1 2025 earnings summary

Executive summary

• Operating revenue for Q1 2025 was RM2,851.5 million, up 0.5% year-over-year, driven by higher data, telecom services, and education segment revenue.

• EBIT was RM550.3 million, a 15.5% decrease year-over-year but a 7.4% increase quarter-over-quarter.

• PATAMI stood at RM401.2 million, down 5.6% year-over-year and 45.1% quarter-over-quarter, impacted by 5G access cost recognition, higher device costs, and FX movements.

• Fixed broadband subscribers grew 1.6% year-over-year to 3.185 million, supported by bundled device offerings and convergence services.

• Profitability was impacted by a shift in 5G access cost recognition and competitive pricing.

Financial highlights

• EBITDA improved quarter-over-quarter but declined year-over-year.

• CAPEX/revenue ratio increased to 9.8%, up 2.6 percentage points year-over-year.

• Free cash flow was RM2,032.2 million, compared to RM527.6 million in 1Q 2024.

• Return on equity was 21.02%, down from 23.33% in 1Q 2024.

• Basic and diluted EPS were 10.5 sen, down from 11.1 sen in Q1 2024.

Outlook and guidance

• Revenue growth for 2025 is expected in the low single-digit range, with B2B digital solutions and C2C demand offsetting softer B2C performance.

• Confident outlook maintained, driven by disciplined execution, strategic investment, and focus on digital infrastructure and cloud solutions.

• CAPEX is on track to meet the 2025 guidance range.

• Malaysian economic growth is projected to moderate amid global uncertainties, but domestic demand remains robust.