Telekom Malaysia (TM) Q1 2026 earnings summary

Executive summary

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

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

• Fixed broadband subscribers reached 3.23 million, with strong traction in convergent and digital solutions.

• Board declared a quarterly interim dividend of 6.5 sen per share, totaling RM249.5 million and representing a 78% payout ratio.

• Profitability was impacted by the one-off 5G write-down, but core operations and cash generation remain resilient.

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 5G write-down).

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

• Free cash flow: RM500 million–RM504.1 million, supporting growth and shareholder returns.

• ROIC: 11.24%, exceeding cost of capital; Return on Equity: 13.96%; Return on Assets: 7.03%.

• Gross debt to EBITDA improved to 1.04x from 1.3x a year ago; net debt/EBITDA at 0.56x.

Outlook and guidance

• On track to meet FY2026 revenue, EBIT, and CapEx guidance, with a measured outlook amid global uncertainties.

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

• Strategic focus on digital infrastructure, disciplined execution, and advancing Malaysia's digital competitiveness.