PETALING JAYA: Telekom Malaysia Bhd
(TM) made good progress on managing customer churn at its Internet service unit Unifi in the third quarter of this year (3Q25) driven by targeted retention offers, analysts say.
According to Hong Leong Investment Bank Research (HLIB Research) Unifi’s subscriber growth has stayed relatively muted since 4Q24, as CelcomDiGi’s aggressive campaigns continued to gain the most traction in the market.
“However, from our recent meeting with management, we understand TM has stepped up churn management efforts, rolling out targeted below-the-line offers to encourage re-contracting among existing Unifi users.
“Management indicated early signs of improvement, citing confidence in achieving double-digit net additions in 3Q25 based on July to August trends,” the research house said in a note to clients.
HLIB Research said from TM’s standpoint, matching competitors’ promotions to retain existing subscribers remains financially sensible despite near-term margin dilution.
This is because acquisition costs have already been fully amortised, while the incremental costs to serve are minimal.
“CelcomDiGi’s strong subscriber momentum, which began early last year, suggests that some of its users will start coming off their typical two-year contract period by next year.
“We think churn management will soon also become a key focus for CelcomDiGi, suggesting that current aggressive promotional activity and intense competition in fixed broadband could moderate from next year onwards.”
