Telekom Malaysia (TM) Q2 2025 earnings summary

Executive summary

• Revenue for 1H 2025 was RM5,623.4 million, down 2.1% year-over-year, with EBIT at RM1,190.3 million, a 5.8% decrease year-over-year, mainly due to forex losses.

• Fixed broadband subscribers grew 1.4% year-over-year to 3.19 million, reflecting steady demand.

• Interim dividend declared at 12.5 sen per share, totaling RM479.7 million, consistent with the previous year.

• Strategic investments in digital infrastructure, AI, data centres, and 5G backhaul continued to drive long-term growth.

• Strategic partnerships and digital transformation initiatives advanced across B2C, B2B, and C2C segments.

Financial highlights

• EBIT for 1H 2025 was RM1,190.3 million, down 5.8% year-over-year, with underlying EBIT at RM1,233.1 million after normalizing items.

• PATAMI for 1H 2025 stood at RM804.2 million, down 2.1% year-over-year.

• Free cash flow was RM799.1 million, with cash and cash equivalents at RM2,243.1 million at end-June 2025.

• CAPEX reached RM822 million in 1H 2025, 14.6% of revenue, prioritizing fibre, 5G, and data centre expansion.

• Basic and diluted EPS for H1 2025 were 21.0 sen, compared to 21.4 sen in H1 2024.

Outlook and guidance

• 2025 guidance reaffirmed, with focus on digital convergence, network expansion, and sustainable shareholder value.

• Data centre expansions in Iskandar Puteri and Klang Valley expected to complete by early 4Q 2025.

• Positive outlook maintained despite market challenges, with emphasis on convergence growth and disciplined capital management.