PETALING JAYA: Telekom Malaysia Bhd
(TM) expects to close 2025 on a steady footing, heading into the final quarter with a priority on protecting profitability while investing strategically in future-ready infrastructure.
Group chief executive officer and managing director Amar Huzaimi Md Deris said this approach will “catalyse the nation’s digital economy, driving inclusivity for all.”
“This is in line with our aspiration of becoming a Digital Powerhouse by 2030 while positioning Malaysia as the digital hub for Asean,” he said in a statement.
For the financial year ending Dec 31, 2025 (FY25), TM guides for low single-digit revenue growth, flat to low single-digit earnings before interest and tax (Ebit) improvement and capital expenditure (capex) of 14% to 16% of revenue.
TM said it is maintaining its full-year guidance, except for Ebit, which is being adjusted to reflect a surge in voluntary separation scheme (VSS) applications.
In its third-quarter results filing with Bursa Malaysia, the telecommunications group said the VSS applications are being considered as they would “have a positive impact to its long-term productivity.”
“Normalising the impact, TM remains on track to achieve the current Ebit guidance,” it said.
TM offered the VSS in July 2023 to all employees aged 50 and above, including both executives and non-executives, with no rigid acceptance targets.
The VSS received positive feedback from employees, as it provides options for early retirement or the opportunity to transition to a different career path.
In 2024, 288 employees’ applications for the VSS were approved.
For the third quarter ended Sept 30, 2025 (3Q25), TM’s revenue rose 2.6% to RM2.99bil from RM2.92bil a year earlier, supported by steady core segments and stronger delivery momentum in the second half.
Net profit for the quarter surged 47.6% to RM686.27mil from RM465.04mil in 3Q24, translating to earnings per share (EPS) of 17.9 sen compared with 12.1 sen previously.
The improvement, TM said, was driven by reduced foreign exchange losses, higher other operating income from network modernisation – which monetised unused copper cables – as well as improved fair value gains from TM’s investment in a technology fund and lower tax charges.
Amar said the higher profit reflects its execution discipline, improved product and service margins, productivity gains and disciplined cost management.
“We are executing our strategy with vigour, solidifying our core business, scaling up our sovereign data centre and cloud infrastructure for growth, while embedding artificial intelligence across our operations to drive long-term competitive advantage,” he added.
For the nine months ended Sept 30, 2025 (9M25), TM‘s revenue slipped 0.5% to RM8.62bil from RM8.66bil, which had included a one-off arbitration settlement last year.
Net profit rose 15.9% to RM1.49bil in 9M25 from RM1.29bil in 9M24, with EPS improving to 38.8 sen from 33.5 sen.
TM said growth in data services and data centre operations helped cushion a softer consumer market and heightened competition.
Its data centre expansions in the Klang Valley and Iskandar Puteri in Johor have now moved into the operational phase, with 20 megawatt of additional capacity available now.
Meanwhile, capex for 9M25 stood at 14.9% of revenue.
TM said improved asset utilisation, stronger earnings performance and disciplined investments helped lift its return on invested capital (ROIC) to a record 13.5%.
On its segmental performance, TM’s business-to-consumer segment under the brand Unifi saw 3Q25 revenue rise 1.4% to RM1.42bil from RM1.40bil a year earlier, while 9M25 revenue was flat at RM4.18bil.
TM said fixed broadband subscribers grew 1.3% year-on-year to 3.21 million, supported by converged bundles and targeted device campaigns.
Its business-to-business (B2B) segment, which sits under TM One, recorded 3Q25 revenue of RM682.8mil, down 3.9% from RM710.8mil in 3Q24, while 9M25 revenue fell 4.8% to RM2.02bil from RM2.12bil.
TM said the softer performance reflected seasonal spending patterns and higher one-off solution revenue in the comparative period, though revenue remained stable quarter-on-quarter on sustained demand for cloud and ICT solutions from government and enterprise clients.
Key collaborations included a smart industrial park partnership with NCT Group, the “Pahang Destina” AI-powered tourism portal, and a five-year managed private cloud contract with a major private hospital group.
Its carrier-to-carrier business, housed under TM Global, continued to support group earnings, with 3Q25 revenue up 9% to RM857.7mil from RM787mil a year earlier, while 9M25 revenue increased 1.4% to RM2.31bil from RM2.28bil.
TM said the growth was driven by steady 5G mobile backhaul, data centre and data services, alongside stronger cross-border connectivity demand.
The segment also advanced its regional expansion through new submarine cable investments, including the completion of its first open international cable landing station in Morib and progress on the 8,000km, 24-fibre-pair CANDLE Submarine Cable System linking Malaysia and Asean to Japan.
TM recorded RM546.5mil in sales to government-related entities in 9M25, with outstanding receivables of RM134.8mil as at Sept 30.
The group also recognised RM24.7mil in amortised government grants for funded projects, compared with RM21mil in the same period last year.
Group borrowings declined to RM2.38bil as at Sept 30, 2025, from RM3.49bil at end-2024, while the fair value of borrowings stood at RM2.51bil versus RM3.56bil previously.
As at Sept 30, 2025, the Employees Provident Fund (EPF) held a 22.71% stake in TM, while Khazanah Nasional Bhd held 20.10%.
Shares of TM closed 0.7% or five sen lower to RM7.25. Still, year-to-date, the stock is 7% or 48 sen up.
