Telekom Malaysia (TM) Q2 2026 earnings summary

Executive summary

• Revenue for 1H 2026 reached RM5.90 billion, up 4.8% year-on-year, with 2Q 2026 revenue at RM2.96 billion, up 6.8%, driven by growth across all customer segments and digital solutions.

• Underlying PATAMI for 1H 2026 increased 7.0% to RM842.6 million, while reported PATAMI was RM687.0 million, impacted by one-off 5G capacity write-down and World Cup broadcasting costs.

• EBIT for 1H 2026 was RM976.1 million, down year-on-year but up 26.7% quarter-on-quarter, reflecting sequential profitability improvement.

• Interim dividends totaled 13.5 sen per share for 1H 2026, representing 75% of reported PATAMI, with a second interim dividend of 7.0 sen per share declared.

• Strategic initiatives included securing FIFA World Cup 2026 broadcast rights, launching new data centre capacity, and expanding international connectivity.

Financial highlights

• Free cash flow for 1H 2026 improved 20% year-on-year to RM955.4 million, with operating cash flow at RM710 million.

• Cost-to-revenue ratio increased by 4 percentage points to 85% due to one-off items, with underlying ratio at 82%.

• Basic/diluted EPS for 1H 2026 was 17.9 sen, down from 21.0 sen in 1H 2025.

• Net cash and cash equivalents at 30 June 2026 stood at RM1,525.4 million.

• CAPEX for 1H 2026 was RM555.7 million, or 9.4% of revenue, focused on data centre, cloud, GPUaaS, and 5G access.

Outlook and guidance

• Management maintains a positive outlook for 2026, expecting to meet full-year guidance, with CAPEX/revenue at 18–20% for FY2026.

• Focus remains on disciplined execution, revenue quality, and cost management amid market uncertainties.

• CAPEX is expected to accelerate in 2H 2026 to support growth initiatives.

• B2C to strengthen convergence through integrated broadband, mobile, and premium content, including FIFA World Cup 2026 rights.

• B2B and C2C segments to expand digital solutions, cloud, cybersecurity, AI, and international connectivity.