28 May 2025
TM Delivers Steady Performance in Q1 2025, Positions for Long-term Growth
Q1 2025 Key Highlights (vs Q1 2024)
- Operating Revenue increased by 0.5% YoY to RM2.85 billion
- EBIT and PATAMI stood at RM550.3 million and RM401.2 million, respectively
- Fixed Broadband Subscribers increased by 1.6%
- CAPEX at RM280.0 million, representing 9.8% of revenue
KUALA LUMPUR, 28 May 2025 – Telekom Malaysia Berhad (“TM” or “the Group”) today announced its financial results for the first quarter ended 31 March 2025 (Q1 2025), reflecting positive topline growth amidst an evolving and dynamic market landscape.
The Group’s operating revenue increased by 0.5% year-on-year (YoY) to RM2.85 billion, primarily driven by higher revenue from data, other telecommunication services and education segment. Earnings Before Interest and Tax (EBIT) stood at RM550.3 million due to the shift in recognition of 5G access costs, higher device costs in line with stronger device revenue and unfavourable foreign exchange movements. Consequently, Profit After Tax and Non-Controlling Interests (PATAMI) came in at RM401.2 million, a 5.6% decline YoY, partially mitigated by lower net finance costs.
Capital expenditure (CAPEX) for the quarter was RM280.0 million, accounting for 9.8% of revenue, on track to meet the 2025 guidance range. The majority of it focused on expanding digital infrastructure such as existing data centres, domestic fibre network and submarine cable systems, which are crucial for a thriving and vibrant digital ecosystem.
Amar Huzaimi Md Deris, TM Group Chief Executive Officer said, “TM’s performance in Q1 2025 reflects our disciplined execution of our strategic priorities aimed at long-term value creation amidst dynamic market landscape. Nevertheless, our fundamentals remain strong, marked by steady performance, continued operational efficiency, and a growing customer base.”
“During the quarter, we sustained fixed broadband subscribers' growth and continued to delight our customers through attractive Unifi UniVerse bundled device offerings, delivering seamless home internet, mobile and lifestyle solutions. This further reinforced our position as Malaysia’s Convergence Champion with the only quad-play services. We also observed positive traction on our national cloud solutions that enable digital transformation across enterprise and public sectors, alongside significant data demand from hyperscalers. In addition, our recent strategic collaboration with U Mobile to provide high-capacity 5G fibre backhaul is a testament of TM’s strength and ability to deliver at scale, speed and quality.”
“We remain focused on strengthening our core to better position ourselves in capitalising emerging opportunities such as data centres, GPU-as-a-Service, cloud and smart services. These efforts are underpinned by our nation-building commitments especially in talent development, community initiatives, and digital empowerment, driving digital inclusivity and ensuring no one is left behind. By aligning business growth with meaningful impact, we demonstrate that commercial success and achieving a higher purpose can go hand in hand, bringing us closer to our aspiration of becoming a Digital Powerhouse by 2030 and position Malaysia as the digital hub of ASEAN,” Amar concluded.
TM maintains a confident outlook driven by disciplined execution, strategic investment, and a forward-looking approach to value creation.
Lines of Businesses (LOBs) Performance
B2C Strengthens Position as the Market Leader in Converged Services
TM’s B2C segment, anchored by Unifi, recorded a revenue of RM1.39 billion in Q1 2025 YoY. It also reinforced its leadership in convergence offerings with a 1.6% year-on-year increase in fixed broadband subscribers, reaching 3.185 million contributed by traction from TM’s Unifi UniVerse convergence offerings, which bundle home internet, mobile, content, and lifestyle services to meet the demand of today’s digital customers. At the same time, Unifi Business continued to empower over 400,000 MSMEs nationwide with digital solutions tailored to their needs.
The Group’s convergence model is designed not only to enhance customer retention, but also to create sustained revenue opportunities across multiple service lines. Investments in AI-driven service operations, predictive maintenance, and digital self-service channels further support this model, enabling TM to manage cost-to-serve while strengthening customer lifetime value. For more information, visit https://unifi.com.my/all-in-one, https://unifi.com.my/tv/ and https://biz.unifi.com.my/
B2B Drives Digital Transformation for Enterprises and Government
TM’s B2B segment, anchored by TM One, recorded a revenue of RM668.7 million in Q1 2025. It achieved positive growth in Beyond Connectivity, driven by stronger performance in customer projects, outsourcing business, and ICT services including cloud and cybersecurity.
The segment continued to enhance its digital solution offerings, including smart services, cybersecurity, and AI-powered solutions. As the national cloud provider, it is driving digital transformation through secure, sovereign and scalable cloud infrastructure. At the same time, the launch of sector-specific events called "TM One NEXT Series" showcasing and discussing the latest technology solutions for various industries underscored TM’s commitment to driving innovation and accelerating digital adoption across key verticals. It also supported digital inclusivity efforts by powering the Sentuhan Digital Madani Kiosks with 5G Fixed Wireless Access, reinforcing its role as a trusted digital enabler.
C2C Strengthens Malaysia’s Position as a Digital Hub for the Region
TM’s C2C segment, anchored by TM Global delivered a positive performance in Q1 2025 with revenue reaching RM760.9 million, a 2.4% YoY increase, primarily driven by higher revenue from international data and growing demand for data centre services. Domestically, TM Global continued the rollout of mobile backhaul to support 5G and increased wholesale broadband access to strengthen last-mile delivery, ensuring reliable, high-speed connectivity across the country. It also recently partnered with U Mobile to provide high-capacity fibre backhaul, the essential backbone of a resilient and high-performance 5G ecosystem.
Internationally, the segment secured substantial long-term capacity requirements from global carriers, strengthened data centre co-location services, and expanded interconnection with international customers. It also progressed the data centre upgrades and submarine capacity investments. The introduction of sovereign GPU-as-a-Service (GPUaaS) also marked a key milestone in supporting Malaysia’s AI ecosystem, reinforcing the nation’s position as a strategic digital hub for the region.
YOU MAY ALSO LIKE
TM's decision to exit menara KL concession
Telekom Malaysia Berhad ("TM" or "the Group") wishes to clarify that Menara KL ("MKL" or "Tower") is owned by the Government while the operations and maintenance of the tower is granted under a concession. TM via its wholly owned subsidiary, Menara Kuala Lumpur Sdn. Bhd. (MKLSB) had undertaken the concession since 1996. As part of its business transformation programme, TM is focusing its efforts and resources on strengthening its core business of telecommunications and technology. After due consideration on the change in the business nature of MKL, from telecommunications services to tourism and hospitality, TM has decided in October 2021 not to renew the MKL concession and informed the Government accordingly. Subsequently in 2022, the selection process of the new Concessionaire was then taken up by the Government upon which TM was informed on the appointed company to take over the shares of MKLSB and the MKL concession. MKLSB shall continue to operate the concession and ensure the continuity of MKL operations for the Malaysian public, including international visitors. Employees will remain employed with MKLSB under the new Concessionaire for a minimum period of 3 years. This is to ensure their welfare is protected in this transition. In TM’s 3Q 2022 financial announcement to Bursa Malaysia, a reference was made in the subsequent changes to shareholding in MKLSB. TM practices good governance and transparency in our business undertakings to preserve the interest of our customers and stakeholders. TM will provide our full cooperation and disclosures as required by the authorities. Building on our commitment to enable a Digital Malaysia, TM will continue to deliver the best telco and technology services for the community, businesses, Government and industry.
TM receives national recognitions for its continous efforts in Energy Management
The Company walked away with four (4) recognitions at the recent National Energy Awards 2020, organised by the Ministry of Energy and Natural Resources (KeTSA). Telekom Malaysia Berhad (TM) was recently bestowed with multiple recognitions for its continuous commitment and best practices in energy management at the National Energy Awards 2020, organised by the Ministry of Energy and Natural Resources (KeTSA). The accolades received by TM were: Rank Category Sub-category Building Winner Category I: Energy Efficiency Energy Management (Small Building) TM Node, Skudai, Johor Bahru Runner-up Category I: Energy Efficiency Energy Management (Large Building) Menara TM, Kuala Lumpur Special Awards Institute of Higher Education Multimedia University, Melaka Special Awards Energy Performance Contracting (EPC) TM Node, Bandar Tun Razak Commenting on the achievements, Badrul Hisham Ahmad, Vice President, Support Business, TM said: "We are humbled and honoured to receive these awards and would like to thank KeTSA for recognising our continued commitment to Energy Efficiency (EE) initiatives, which is part of our overall sustainability agenda. Such initiatives not only provide cost optimisation and increased efficiency, but also contribute towards environment conservation. We understand that while we are advancing towards an increasingly digital economy and lifestyle, ensuring the sustainability of our environment is equally important for future generations. In addition to economic development, TM's role in empowering a Digital Malaysia is also driven by our potential to play our part to combat climate change. Although the ICT sector contributes 2% of global carbon emissions, increasing connectivity offsets the emissions. By providing digital solutions, we enable other sectors of the economy to grow while reducing energy use, travel and greenhouse gas (GHG) emissions. Therefore, the transition towards a digital economy helps achieve global carbon-reduction targets." "As we work to increase connectivity and digital, the necessary network and infrastructure expansion brings upon risks of environmental harm. As a responsible business, TM is implementing strict policies and innovative solutions that reduce the carbon emissions resulting from its operations and infrastructure development. A key way to reducing TM's carbon emissions is by lowering our overall energy consumption. As such, our facilities are supported by Energy Saving Initiatives (ESI), which describes how we can improve energy-efficiency at network and non-network buildings. We also adopt sustainable practices for emissions management that adhere to regulatory standards. We conduct regular monitoring of the air, noise and water of areas surrounding our operations. We strive to consistently comply with the environmental monitoring limits stipulated by the Department of Environment (DoE) thus ensuring that our business does not harm nearby environment and communities. We have been continuously improving on our emissions and consumption policies, objectives, targets and strategies. Additionally, we monitor and measure activities that contribute to our carbon footprint, including energy use and waste production, resulting in a 7.5% reduction in overall GHG emissions for 2019. We also recorded a 7.4% reduction in energy consumption," Badrul elaborated. The annual National Energy Awards (NEA) highlights the development of ideas and best practices in driving the country's sustainable energy sector. The award recognises the efforts of the public and private sectors in energy innovation that manifests positive impact to the nation and all Malaysians. It acknowledges the adopters of energy efficiency technology and renewable energy in driving towards Malaysia's sustainable development aspirations. It is also the Government's strategic move to promote innovation in local technology, research and development (R&D) as well as to create awareness on a broad level across the different facets of society, in line with the country's aspiration to spur energy sector as the new area for economic growth. Previously in 2019, the National Energy Awards also honoured TM for the first time as the winner for Category I: Energy Efficiency under sub-category of Energy Management (Small & Medium Building). The award recognised energy saving initiatives at Menara TM, Melaka which include upgrading of conventional lighting to LED, chillers optimisation, reuse of ablution water for watering plant and installation of motion sensor lighting, among others. For more info on TM's efforts towards sustainability, visit www.tm.com.my/sustainability.
TM R&D inks MoU with ZTE to collaborate on optical network research, bringing the first 50gbps bandwidth experience to Malaysia
Telekom Research & Development Sdn Bhd (TM R&D), the innovation arm of Telekom Malaysia Berhad (TM), recently signed a Memorandum of Understanding (MoU) with ZTE (Malaysia) Corporation Sdn Bhd (ZTE), a global leading provider of information and communication technology solutions, to collaborate on optical network research, bringing the first 50Gbps bandwidth experience to Malaysia. The MoU was signed by Dr Sharlene Thiagarajah, Chief Executive Officer, TM R&D and Steven Ge, Chief Executive Officer, ZTE Malaysia. Under this agreement, TM R&D and ZTE will jointly explore the capabilities of next-generation Passive Optical Network (PON) access technology, 50GPON, to support various application scenarios. In addition, both entities will look into use cases that can deliver ultra-broadband access to the government, enterprise and consumers, as well as support the requirements of innovative services such as 5G, Cloud Virtual Reality (VR), industrial intelligent manufacturing for high bandwidth, low latency & jitter, and clock synchronisation, all of which will enhance the user experience in Malaysia. Commenting on the MoU, Dr. Sharlene Thiagarajah, Chief Executive Officer, TM R&D said, “TM R&D is committed to conducting research on future technologies and innovating new value-added smarter eco-systems that will improve the quality of user experience, and ultimately bring a positive impact on their lives. This fits well into the TM Group’s transformation towards becoming a human-centred TechCo. We are very excited to partner with a renowned global player such as ZTE to innovate on future generation PON technology in line with the global trend and technology roadmap.” Meanwhile, Steven Ge, Chief Executive Officer, ZTE Malaysia shared, “With Gigabit home broadband services widely used in Malaysia at present, and the basic fixed network is in the time window of evolution from GPON to 10G PON, this partnership could not have come at a better time.” “ZTE is pleased with the opportunity to collaborate with TM R&D on future research in next-generation PON technology supporting Digital Malaysia,” he added.
NEWSLETTER
Just drop your details and stay updated with the world of Telekom Malaysia. We promise – no spam!