29 Aug 2025
TM Q2 NET PROFIT RISES 1.7%, DECLARES 12.5 SEN INTERIM DIVIDEND
KUALA LUMPUR, 29 August 2025 – Telekom Malaysia Berhad (“TM” or “The Group”) today announced its financial results for the second quarter ended 30 June 2025 (2Q 2025), reflecting resilience in a competitive market and continued progress on its strategic priorities.
During the quarter, Profit After Tax and Non-Controlling Interests (PATAMI) rose 1.7% compared to corresponding quarter last year to RM403.0 million, while Earnings before Interest and Tax (EBIT) grew 4.5% to RM640.0 million.
For the first half of 2025 (1H 2025), revenue stood at RM5.62 billion versus RM5.74 billion a year earlier, as a result of intensely competitive market. Meanwhile, the Group registered EBIT of RM1.19 billion, down 5.8% compared to corresponding period last year, mainly due to forex losses. Adjusting for these, underlying EBIT recorded growth, underscoring TM’s strong fundamentals, core operations and cost discipline in delivering profit despite revenue pressures.
The Group continues to demonstrate its focus towards value creation and disciplined capital management, as reflected in the improvement of Return on Invested Capital (ROIC) to 12.81% from 12.34% a year ago. TM maintains a positive outlook for the year and is confident in meeting its 2025 guidance.
The Board has declared an interim dividend of 12.5 sen per share, amounting to RM479.7 million for the financial year 2025, reaffirming its commitment to delivering sustainable returns to shareholders.
1H 2025 Segment Highlights
- Business to Consumer (B2C): Unifi registered steady revenue performance and an increase in fixed broadband subscribers driven by Unifi UniVerse convergence offerings, fuelled by content and mobile take up. Its diverse range of device bundles continued to attract strong demands from various segments. Meanwhile, as the preferred partner to more than 400,000 MSMEs nationwide, Unifi Business segment remained a key driver, with tailored digital solutions that promote digital inclusivity.
- Business to Business (B2B): TM One revenue was softer as several major projects and sizeable deals are expected to be completed in the second half of the year. Nevertheless, beyond connectivity services such as cloud and ICT recorded steady growth.
- Carrier to Carrier (C2C): TM Global remains well-positioned, with a strong pipeline of large-scale border-to-border bandwidth requirements expected to be delivered by year-end. On the domestic front, the segment is on track with its data centre expansions and the delivery of 5G mobile backhaul in support of the national 5G agenda.
Investing for Future Growth
TM continues to strengthen its long-term position through strategic investments in digital technologies, encompassing AI infrastructure and applications, data centres, edge facilities, expanded fibre coverage, 5G mobile backhaul and submarine cable systems.
“Digital infrastructure and AI are no longer just a vision for TM. It’s becoming a reality, from the establishment of data centres, sovereign cloud and GPU-as-a-Service to various enterprise applications that continuously help businesses to unlock digital capabilities and growth,” said Amar Huzaimi Md Deris, Group Chief Executive Officer, TM.
“Equally important is ensuring digital inclusivity for all communities and businesses, while nurturing the right talent to power Malaysia’s digital future. Through our inaugural Jangkau Digital programme, we are reimagining Kampung Mukut in Pulau Tioman as the nation’s first Smart Eco-Village. At the same time, the launch of Malaysia’s first Faculty of Artificial Intelligence and Engineering at our education arm, Multimedia University, is a clear testament to this commitment. Together, these initiatives reflect TM’s greater purpose of empowering lives and ensuring no one is left behind in the digital era.”
Outlook
“While the market environment remains challenging, our results demonstrated resilience and ability to execute our strategic priorities. We are building positive momentum through stronger convergence growth, improved cost structures and disciplined capital management. With our investments in future-ready infrastructure, we are advancing towards our aspiration to become a Digital Powerhouse by 2030, while delivering sustainable value for our stakeholders,” Amar concluded.
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TM supports 5G deployment in Langkawi with its Integrated Operations Command Centre
Deployed the Region’s First Stand Alone (SA) Dedicated 5G network Telekom Malaysia Berhad (TM) is fully supportive of the 5G Demonstration Project (5GDP) currently undertaken by Malaysia Communications and Multimedia Commission (MCMC). The Company has already embarked on a total of 11 use cases in Langkawi and deployed the operations of an Integrated Operations Command Centre (IOCC) which is at the heart of 5G implementation in Langkawi. The IOCC, or also known as 5G Command Centre (5GCC), which is equipped with state-of-the-art technology, is an integrated command centre where the data feed and dashboard monitoring of TM 5G network and use cases in Langkawi are centralised. This 5GDP is recording a number of firsts for TM and the country: The first Telco to deploy SA dedicated 5G network in the country and in the region. The first telco in the region to update our Radio Access Network (RAN) and devices with SA dedicated 5G network. The first Telco in the country to achieve 1.5Gbps for 5G speed tests conducted within its 5G use cases sites. Langkawi is the first Smart Tourism Island in the world equipped with 5G Dato’ Noor Kamarul Anuar Nuruddin, Group Chief Executive Officer, TM said: “We fully support MCMC’s 5GDP and we are currently testing the implementation of a converged 5G core network which allows co-existence of Non-Stand Alone (NSA) (5G enabled on current 4G network) and Stand Alone (SA) dedicated 5G network in Langkawi. SA is the future of the 5G network deployment and this demonstration is crucial to fast track 5G implementation in the country. With the implementation of the SA network in Langkawi for the 5GDP, TM is the first Telco that has deployed the first SA dedicated 5G network in the country and in the region. We are also proud to note that 5G speed tests conducted within TM’s 5G use cases sites have achieved up to 1.5Gbps. I’m also pleased to update that TM is the first telco in the region to update our Radio Access Network (RAN) and devices with SA dedicated 5G network.” “For 5GDP in Langkawi, we have deployed the highest number of 5G use cases among the participating telcos and all the 5G network and use cases sites can be monitored via the dashboard at the 5GCC, where our expert, qualified technical team works 24/7 to monitor the operations. It is also linked to the local authorities and emergency response services which allow for the communities as well as tourists to experience a smarter, safer living. In addition, we open the 5GCC for all other Service Providers to deploy their monitoring dashboards so all relevant data can be centralised for collective insights.” Currently, the 5GCC houses the dashboard for the following use cases: Smart Traffic Light Smart Parking Smart Safety and Security Solutions Langkawi Smart Tourism Dashboard (Smart Tourism App and UNESCO 8K VR) Gerbang Langkawi Platform (for Smart Water Management System, Smart Vehicle System, Smart Retail Analytics, Smart Safety Helmet and Geolocation People Safety Solutions) Backed up by analytics, Artificial Intelligence (AI), Internet of Things (IoT) and data-driven insights, the 5GCC is furnished with advanced integrated security features to serve as a security monitoring centre through closed-circuit television (CCTV) cameras being installed at hotspots on the island. It is also equipped with face and vehicle recognition system that will assist authorities in public safety and surveillance as well as with criminal investigation, crime prevention and citizen protection. It also monitors weather sensors, tsunami alarms, wind speed systems that have been installed at TM’s designated 5G use cases sites in Kuah and Cenang. The control centre empowers local agencies in promoting tourism safety and attractions effectively, unravelling businesses growth opportunities for the local and providing a safer and smarter crowd control for tourists that will help drive forward Langkawi as a Smart Tourism Island. The monitoring dashboards provides real-time data and consolidated information from all the use cases, for example traffic, parking and security conditions of the 5G use cases areas in Kuah and Pantai Cenang, water consumption level, retail footfall and customer emotions data, number of incidents and alerts, among others. In addition, the authorities can receive alerts and notifications, such as distress calls and response via a panic button from the closed circuit television (CCTV) poles deployed with the smart safety and security solution, or alerts during emergencies e.g. accidents at the workplace, missing individuals, detection of unhappy customers at retail outlets and detection of dangerous driving. These alerts enable the authorities to mobilise resources swiftly during any undesirable incidents or emergency situations, thereby improving their ability to react and respond to the Rakyat's needs in a timely manner for any emergencies. “As the national telecommunications infrastructure provider of Malaysia’s Digital Nation aspirations, we are honoured to be given the opportunity to establish this 5GCC which demonstrates our expertise and capabilities in delivering 5G services to Malaysians nationwide. We aspire to not only enable the ecosystem but also plans to be a neutral partner for industry players and collaboration partners towards enabling Malaysia’s Digital Economy. This signifies our support for MCMC’s aspiration in progressing humanity towards improving the quality of lives of the Rakyat. TM, via our innovative and comprehensive products and solutions will continue to work closely with the Government and MCMC to lay the foundation for Industrial Revolution 4.0 (IR4.0) and rolling out 5G nationwide to serve a more digital society and lifestyle, digital businesses and industry verticals, as well as digital Government,” he added.
TM Launches New HQ And Campus To Promote Collaboration And Foster Human-Centred Innovation
Further complementing its transformation journey towards becoming a human-centred TechCo, TM is pleased to announce the launch of its new HQ and campus in conjunction with its Hari Raya event for employees. Located in Cyberjaya, TM Campus marks a significant milestone for TM as it represents the company's commitment to creating an innovative space that drives agility, flexibility and efficiency through digital collaboration and hybrid work environment. TM is set to drive higher productivity while instilling a sense of pride among Warga TM through a stimulating work environment and a hybrid policy of three (3) days at the office and two (2) days working from anywhere. The campus houses not only the new TM HQ, but also TM Innovation Hub, TM Network Intelligence Centre and TM Core Data Centre. The campus provides open office spaces, technology infrastructure and digital tools, as well as dedicated areas for collaboration, empowering employees to deliver innovative solutions for customers. It also features a sustainable eco-friendly design with green spaces and an abundance of natural light to create a healthy and inspiring workspace atmosphere that employees can be proud of. TM Campus was officially launched today by Dato’ Imri Mokhtar, Group Chief Executive Officer, witnessed by the senior leadership team and Warga TM. “We are thrilled to launch the new campus as it is a testament of our commitment to propel innovation among our employees, customers and partners. The campus features an open space concept, equipped with advanced technology infrastructure to facilitate Warga TM to co-create digital platforms and smart solutions,” said Dato’ Imri. “We are changing our way of working and this campus will be the catalyst. Complemented by the use of various technologies and digital tools such as robotics process automation (RPA), artificial intelligence (AI), analytics and remote working tools, it will bring out the best of our people, while enhancing their well-being at the same time,” he further added. To support this evolution, TM provides various on-demand learning platforms and technology training opportunities to complement its commitment towards human-centred innovation. "With the spirit of collaboration and mutual exchange of ideas, we will continue to develop ourselves for the benefit of our customers and other stakeholders," Dato’ Imri concluded. This is also in line with TM’s new brand promise, ‘Your Next is Now’, which demonstrates how technology is harnessed to empower people to drive change, enabling them to realise their aspirations, whether to scale big ideas, build new businesses, or take better care of the planet. Some of these innovations were also showcased by TM during the launch event. TM Digital Workplace features the benefits of a hybrid work environment, On-demand Learning and Professional Development Platforms and Employees Self-Service, for greater efficiency among Warga TM. For our customers, TM One Smart Solutions showcase features Smart Healthcare, Smart Industries & Analytics, and Smart City. This is a significant moment for the Group, and it marks a new chapter in its journey towards becoming a human-centred TechCo that creates value for its stakeholders. With its innovative features, human-centred design and commitment to diversity and inclusion, this new facility is poised to become a hub for innovation and creativity.
LAPSE OF CONDITIONS PRECEDENT LONGSTOP DATE FOR THE SHARE SUBSCRIPTION AGREEMENT WITH DIGITAL NASIONAL BERHAD
On 10 May 2023, TM filed a Bursa Announcement to notify that the longstop date to fulfil all conditions precedent in the Share Subscription Agreement (SSA) for the subscription of a 20% equity stake in Digital Nasional Berhad (DNB) had lapsed. Consequently, TM issued a termination notice to DNB, effective immediately. Nonetheless, TM looks forward to the next process and discussion with the Government and the industry on 5G participation across Phase 1 (towards 80% service coverage by DNB) and Phase 2 (shift to two networks), as announced by the Government on 3 May 2023. TM is committed to continue playing an active role in the 5G implementation, leveraging its nationwide fibre infrastructure, extensive digital platforms (data centre, edge nodes) and rollout experience. In the meantime, TM customers of Unifi Mobile and TM One will continue to enjoy 5G services and solutions, as the 5G wholesale Access Agreement remains in place. TM is committed to serve as the nation’s trusted partner to grow Malaysia’s overall connectivity and digital ecosystem, including 5G. We are committed to shaping a Digital Malaysia through technology that empowers communities, businesses and Government.
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