PETALING JAYA: The telecommunications sector could see a stronger earnings performance in the third quarter of 2026 as the average revenue per user (Arpu) is set to see an uplift.
In a report, UOB Kay Hian (UOBKH) Research expects the sector to benefit from the market-wide mobile price increases implemented in February this year, with CelcomDigi Bhd
and Maxis Bhd seen as the key beneficiaries.
The research house said the quarter’s 2% year-on-year growth in service revenue was driven largely by the pricing revisions across postpaid and prepaid products.
“Good cost discipline, encouraging enterprise demand especially for Telekom Malaysia Bhd from the public sector segment; and robust home fibre demand, driven by fixed-mobile convergence strategies and home passes expansion were factors in the growth,” UOBKH Research said.
CelcomDigi, Maxis and UMobile collectively raised postpaid and prepaid prices by 5% to 10%, signalling market repair and rational price competition.
The impact was seen – as Maxis saw an improved Arpu, increasing 1.4% quarter-on-quarter for prepaid and 0.3% for postpaid, while CelcomDigi’s Arpu remained stable.
“We expect positive spillover in 3Q26, driving earnings upside for both Maxis and CelcomDigi,” UOBKH Research said.
It maintained its “market weight” call on the sector, with Maxis and CelcomDigi as its top picks. However, the weaker overall performance was largely due to Axiata Group, whose net profit fell 74% year-on-year.
