- Operating revenue increased by 0.5% YoY to US$ 674 mil
- Patami was US $94.9 mil, down 5.6% YoY, partially offset by lower net finance costs
Telekom Malaysia Berhad (TM or the Group) has announced its financial results for the first quarter ended 31 March 2025 (Q1 2025), reflecting topline growth amidst an evolving and dynamic market landscape.
In a statement, the Group reported that its operating revenue increased by 0.5% year-on-year (YoY) to US$ 674 million (RM2.85 billion), primarily driven by higher revenue from data, other telecommunication services, and the education segment. Earnings Before Interest and Tax (Ebit) stood at US$ 130.2 million (RM550.3 million), impacted by the shift in recognition of 5G access costs, higher device costs in line with stronger device revenue, and unfavourable foreign exchange movements.
Consequently, Profit After Tax and Non-Controlling Interests (Patami) came in at US $94.9 million (RM401.2 million), a 5.6% decline YoY, partially mitigated by lower net finance costs.
[RM1 = US$0.22]
The telco added that capital expenditure (capex) for the quarter was RM280.0 million, accounting for 9.8% of revenue—on track to meet its 2025 guidance range. It stated that the majority of the capex was directed towards expanding digital infrastructure, including existing data centres, the domestic fibre network, and submarine cable systems—critical components of a thriving and vibrant digital ecosystem.
Amar Huzaimi Md Deris, TM Group CEO said, “TM’s performance in Q1 2025 reflects our disciplined execution of our strategic priorities aimed at long-term value creation amidst dynamic market landscape. Nevertheless, our fundamentals remain strong, marked by steady performance, continued operational efficiency, and a growing customer base.”
He added, “During the quarter, we sustained fixed broadband subscribers’ growth and continued to delight our customers through attractive Unifi UniVerse bundled device offerings, delivering seamless home internet, mobile and lifestyle solutions. This further reinforced our position as Malaysia’s Convergence Champion with the only quad-play services. We also observed positive traction on our national cloud solutions that enable digital transformation across enterprise and public sectors, alongside significant data demand from hyperscalers.”
He continued, “In addition, our recent strategic collaboration with U Mobile to provide high-capacity 5G fibre backhaul is a testament of TM’s strength and ability to deliver at scale, speed and quality.”
“We remain focused on strengthening our core to better position ourselves in capitalising emerging opportunities such as data centres, GPU-as-a-Service, cloud and smart services. These efforts are underpinned by our nation-building commitments especially in talent development, community initiatives, and digital empowerment, driving digital inclusivity and ensuring no one is left behind. By aligning business growth with meaningful impact, we demonstrate that commercial success and achieving a higher purpose can go hand in hand, bringing us closer to our aspiration of becoming a Digital Powerhouse by 2030 and position Malaysia as the digital hub of Asean.”
Amar concluded, “TM maintains a confident outlook driven by disciplined execution, strategic investment, and a forward-looking approach to value creation.”
Lines of businesses performance
B2C strengthens position as the market leader in converged services
According to TM, its B2C segment, anchored by Unifi, recorded revenue of RM1.39 billion in Q1 2025, marking year-on-year growth. It also reinforced its leadership in convergence offerings, with a 1.6% year-on-year increase in fixed broadband subscribers, reaching 3.185 million. This growth was driven by strong traction from TM’s Unifi UniVerse convergence offerings, which bundle home internet, mobile, content, and lifestyle services to meet the evolving demands of today’s digital consumers.
At the same time, Unifi Business continued to empower over 400,000 MSMEs nationwide with digital solutions tailored to their specific needs.
The Group added that its convergence model is designed not only to enhance customer retention but also to create sustained revenue opportunities across multiple service lines. Investments in AI-driven service operations, predictive maintenance, and digital self-service channels further support this model—enabling TM to manage cost-to-serve while strengthening customer lifetime value.
B2B drives digital transformation for enterprises and government
TM stated that its B2B segment, anchored by TM One, recorded revenue of RM668.7 million in Q1 2025. It achieved positive growth in Beyond Connectivity, driven by stronger performance in customer projects, the outsourcing business, and ICT services, including cloud and cybersecurity.
The telco added that this segment continued to enhance its digital solution offerings, including smart services, cybersecurity, and AI-powered solutions. As the national cloud provider, it is driving digital transformation through secure, sovereign, and scalable cloud infrastructure. Additionally, the launch of sector-specific events under the “TM One NEXT Series”—which showcase and discuss the latest technology solutions for various industries—underscored TM’s commitment to innovation and the acceleration of digital adoption across key verticals.
The company also supported digital inclusivity by powering the Sentuhan Digital Madani Kiosks with 5G Fixed Wireless Access, reinforcing its role as a trusted digital enabler.
C2C strengthens Malaysia’s position as a digital hub for the region
TM’s C2C segment, anchored by TM Global, delivered a strong performance in Q1 2025 with revenue reaching RM760.9 million, a 2.4% year-on-year increase. This was primarily driven by higher international data revenue and growing demand for data centre services. Domestically, TM Global continued the rollout of mobile backhaul to support 5G and expanded wholesale broadband access to strengthen last-mile delivery, ensuring reliable, high-speed connectivity across the country.
It also recently partnered with U Mobile to provide high-capacity fibre backhaul, the essential backbone of a resilient and high-performance 5G ecosystem.
Internationally, the segment secured substantial long-term capacity commitments from global carriers, enhanced data centre co-location services, and expanded interconnection with international customers. It also made progress in data centre upgrades and submarine capacity investments. The introduction of sovereign GPU-as-a-Service marked a key milestone in supporting Malaysia’s AI ecosystem, reinforcing the nation’s position as a strategic digital hub for the region.
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