Call for TM to adjust balance sheet due to cash buildup


Telekom Malaysia's new headquarters in Cyberjaya. – AZHAR MAHFOF

PETALING JAYA: Telekom Malaysia Bhd’s (TM) net debt to earnings before interest, tax, depreciation and amortisation (Ebitda) may fall to 0.4 times for the financial year 2025 (FY25) and 0.2 times by FY26 unless excess cash is returned to shareholders, says CGS-CIMB Research.

“While elevated margins from reduced tax rates will lift the return on equity (ROE) in FY23 and FY24, the falling financial leverage will become a drag on ROE in the longer term, unless this cash buildup is addressed.

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