PETALING JAYA: Telekom Malaysia Bhd
(TM), which saw its first-quarter (1Q26) earnings weighed down by a RM127.3mil one-off write-down linked to the 5G agreement following the termination notice issued to Digital Nasional Bhd (DNB), says it remains focused on delivering its full-year guidance.
In a Bursa Malaysia filing, the telecommunications company said it continues to monitor global geopolitical developments, including those in the Middle East, and their potential implications on operations.
“TM maintains a measured outlook amid prevailing uncertainties and remains focused on delivering its financial year ending Dec 31, 2026 (FY26) guidance,” it noted.
TM’s FY26 guidance comprises low single-digit revenue growth and earnings before interest and tax (Ebit) at a similar level to FY25 of RM2.03bil.
For 1Q26, TM’s revenue rose 2.9% to RM2.93bil from RM2.85bil in the previous corresponding quarter.
This was supported by higher contributions from data, Internet and other telecommunications services.
Net profit for the quarter under review, however, fell 19.9% to RM321.5mil from RM401.3mil in 1Q25, while earnings per share declined to 8.38 sen from 10.46 sen.
TM attributed the weaker earnings to a RM127.3mil one-off write-down of “unutilised prepaid capacity for the 5G multi-operator core network” following the termination notice issued to DNB in February 2026, as well as higher mobile network infrastructure sharing costs and foreign-exchange losses.
Excluding one-off items, TM said underlying profit after tax and minority interests (Patami) grew 9.3% to RM436.3mil, while Ebit rose 6.3% to RM593.3mil.
By segment, business-to-consumer under Unifi, the group’s consumer and converged services arm, posted a 5.1% increase in revenue to RM1.46bil, driven by a larger broadband customer base of 3.2 million and higher adoption of converged service bundles.
Business-to-business (B2B) under TM One and Credence, its enterprise digital solutions, remained stable at RM671.5mil, compared to RM668.7mil in the corresponding quarter last year.
This was supported by continued demand for information and communication technology services, including cloud and smart solutions.
Carrier-to-carrier (C2C) under TM Global, its wholesale business arm, grew 2.1% to RM776.6mil, driven by stronger international data and mobile backhaul demand, supported by rising hyperscaler activity and expansion of domestic connectivity services.
Group chief executive officer Amar Huzaimi Md Deris said TM entered 2026 with encouraging growth momentum, supported by stronger traction in mobile, television and smart home offerings.
This, he said, is further complemented by continued expansion in its B2B and C2C digital services, including cloud, cybersecurity, smart services, artificial intelligence and data centres.
“We remain committed to advancing our digital powerhouse aspirations, from connecting homes and micro, small and medium enterprises to delivering critical digital solutions for enterprises, the government and hyperscalers,” he added.
TM has declared a six-and-a-half sen dividend for 1Q26, representing a payout ratio of 78% of Patami.
This is in line with its revised dividend policy, which sets a minimum payout of 75% of Patami and moves to quarterly dividend distributions, effective 1Q26.
Yesterday, shares of TM closed nine sen or 1.2% lower at RM7.34, giving it a market capitalisation of RM28.17bil.
