KUALA LUMPUR: The telecommunications industry’s average revenue per user (ARPU) eased 0.8 per cent quarter-on-quarter (q-o-q) in the second quarter of 2025 (2Q 2025) with the possibility to decline further in the second half of the year (2H 2025), according to CIMB Securities Sdn Bhd.
In a research note today, the firm attributed the decline to bundled discounts and promotional rebates offered by service providers to acquire and retain customers.
"We think ARPU may be more stable thereafter because most subscribers would have re-contracted on the new offers introduced since 2H 2023, following the implementation of the mandatory standard on access pricing on March 1, 2023,” it said.
CIMB Securities noted that most telcos reported earnings broadly in line with expectations, with Maxis Bhd
beating forecasts, while CelcomDigi Bhd (CDB) underperformed.
Maxis’ mobile revenue market share (RMS) rose 0.3 percentage points to 42.7 per cent, while CDB’s fell by the same margin to 57.3 per cent, it said.
"Fixed services revenue fared worse than mobile in 2025, down 2.5 per cent year-on-year (y-o-y) solely due to Telekom Malaysia Bhd (TM).
"Fibre broadband competition stayed tight,” CIMB Securities said.
On earnings, it said Maxis posted a q-o-q seven per cent rise in core earnings per share (EPS) helped by higher device-related income and lower effective tax rates.
CDB’s core EPS slipped two per cent q-o-q while TM’s fell 4.5 per cent due to a lower one-off income and higher depreciation.
The research house maintained its "Overweight” rating on the telecommunications sector. - Bernama
