The group estimates revenue growth to be in single digit percentage-wise for FY25.
PETALING JAYA: Despite Telekom Malaysia Bhd
’s (TM) cautious guidance over revenue growth for its financial year ending Dec 31, 2025 (FY25), the investment community is mostly positive on the company’s outlook
The group’s performance is expected to be supported by continued growth in retail customers for its Unifi services, continuing digitalisation in the country and expansion of the regional submarine cable network.
The group, which released its results for the fourth quarter ended Dec 31 (4Q24) and the full year (FY24) on Tuesday, estimates revenue growth to be in single digits percentage-wise for FY25.
Kenanga Research, which maintained an “outperform” call on the stock, said the investment case for TM included the group taking advantage of trends such as the country’s ongoing digital transformation, the upcoming second phase of the Jendela national Internet network, data centres enabling earnings accretion, and higher demand for data transmission through its digital network of submarine cables and domestic fibre-optic lines.
The research house tweaked its FY25 earnings forecast for TM higher by 2% and raised the target price to RM8.07 from RM7.53 as the company expects extra capacity from existing cables being upgraded and completed by 3Q25.
TM’s shares closed at RM6.83 in yesterday’s trading.
